NASHVILLE — Tennessee government finished the first month of the new fiscal year with revenues running $5.4 million less than the budgeted estimate.
But state Finance Commissioner Dave Goetz focused on the fact that state sales tax collection — the main driver of state government funding — is continuing to show signs of improvement with a growth rate of 3.26 percent in August.
“Sales tax collections have shown positive growth for the past five consecutive months, and we believe it points to a slowly recovering economy in Tennessee,” Goetz said in a news release. “Still, we need to continue to closely monitor our spending patterns in the months ahead to keep the budget in a balanced posture for the next governor.”
The state uses an accrual basis of accounting, making August the first month in the 2010-2011 fiscal year.
Overall August tax revenues were $749.3 million, which is 3.08 percent higher than a year ago but $5.4 million less than this year’s budgeted estimate.
The general fund, which provides money in areas ranging from public safety to education, was under collected by $10.7 million and the four other funds were over collected by $5.3 million.
Sales tax collections were $10.1 million more than the estimate. But the state’s major business taxes — franchise and excise taxes — were $12 million below the budgeted estimate of $23.5 million.
Gasoline and motor fuel collections increased by 0.34 percent and were $4.7 million above the budgeted estimate of $69.0 million.
Wait just a minute! Good ole boy Bredesen just promised to give away $2,500,000 [total] to the first 1,000 people who buy a foreign electric car! So take the $2.5M and stick it in the general fund.
Hm-m-m. Gas tax revenue goes up, business tax revenue goes down. Anyone see the possible meaning in that?
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