Larry B. MartinNASHVILLE - Tennessee's 2016-2017 fiscal year revenue is soaring with collections now $154.6 million more than expected during the budget year's first two months, according to Finance Commissioner Larry Martin's office.
Figures for Tennessee's September tax and fee collections alone show revenue exceeding monthly budget estimates by $116.6 million. That's on top of August's $38 million monthly "over collection."
With that kind of blazing start, the Haslam administration is now trying to throw a wet blanket on expectations.
"While we are encouraged by the September revenue numbers, we do have some concerns about the sustainability of our [business] franchise and excise tax growth for the balance of this year," Commissioner Martin said in a news release.
The overall growth rate for September was 6.38 percent.
Tennessee's growth this budget year comes after state funding board projections for 2015-2016 failed to anticipate exploding tax and fee growth that resulted in a nearly $1 billion surplus.
Martin said Tuesday that September sales tax collections, reflecting August activity, grew $24.1 million, or 4.5 percent more than projected.
Meanwhile, the commissioner said, corporate taxes also "posted positive double-digit growth" at 12.22 percent. And that generated $75.8 million more than the September budgeted estimate of $329.1 million.
On an accrual basis, September is the second month in Tennessee's fiscal year 2017 budget.
Sales tax and corporate revenue go into the general fund that provides dollars for most functions of state government including K-12 and higher education, prison operations, mental health hospitals and more.
So far the general fund is running $107.6 million above estimates. The four other funds, which include fuel taxes for roads, are running $9.0 million above estimates. The transportation fund has $6.2 million more than the budgeted estimate.
Buoyed by fiscal 2015-2016 revenue growth, the Republican-run General Assembly this year approved phasing out the state's 6 percent Hall income tax on interest and dividends, lowering it by one percent a year.
Hall tax revenues last month were $3.8 million less than the budgeted estimate. For two months, the tax is running $4 million below estimates.
Contact Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow on twitter at AndySher1.