General Revenue Funds Shows Big Jump in Corporate Taxes

OKLAHOMA CITY – Corporate income tax collections continued climbing in March, while total collections to the General Revenue Fund (GRF) declined following an aberration in the normal flow of personal income tax receipts and ongoing reductions in natural gas revenues.

"The sharp upward climb in corporate income tax collections is extremely encouraging. Our economy is still expanding, although perhaps at a more moderate pace," said Secretary of Finance and Revenue Preston L. Doerflinger.

Collections to the GRF totaled $413.9 million in March, which is $20.6 million or 4.7% below collections for March of Fiscal Year 2012, and $61.6 million or 13% lower than the official estimate upon which the FY-2013 budget is based.

Nelson Reelection Bid Endorsed by Small Business Group

Oklahoma City -- The National Federation of Independent Business, Oklahoma’s leading small business Association, recently announced its endorsement of my bid for reelection to the Oklahoma House of Representatives.

“Representative Jason Nelson has received the endorsement of NFIB Oklahoma because he has a proven record in support of small and independent businesses,” said Jerrod Shouse, NFIB Oklahoma State Director. “Representative Nelson clearly understands the importance of small businesses to the economy of Oklahoma and has shown he will consider the needs of small business in the legislature. We are proud to endorse his candidacy and look forward to working with him in the next legislative session.”

NFIB’s endorsement brings with it the powerful support of thousands of small business owners across the state. “Our members, the independent business owners, know and appreciate the importance of an ally in legislature,” said Shouse.

This endorsement comes from the Oklahoma SAFE (Save America’s Free Enterprise) Trust, NFIB’s political action committee. The National Federation of Independent Business bases its political support on candidates’ positions and records on key small business issues.

My wife and I have parents who started and continue to run successful small businesses. Lori and I also have a small business. Small, independent businesses are the backbone of our economy. As a State Representative I believe small business should be protected from high taxes and burdensome regulations. I will continue to be a champion of our state's main economic engine - small, independent businesses that provide the bulk of the jobs in our state. 

I'm honored to have the endorsement of the NFIB - a well respected champion of small business. 

Strong Income Tax Receipts, September Collections Resume Rise

OKLAHOMA CITY – Revenue collections ticked up in September, pushed by strong income tax remittances, State Treasurer Ken Miller announced this week as he released the monthly gross receipts to the treasury report.

Total collections were almost three percent higher than in September of last year. Three of the four major tax categories were positive, with income tax leading the way up almost 16 percent. Sales tax and motor vehicle receipts also showed growth.

Collections from the gross production tax on oil and natural gas remained well below prior year totals, down almost 40 percent, but off their low of 54 percent below the prior year in August, indicating we may have turned a corner, Miller said.

“Oklahoma’s economy continues to climb up the expansion side of the business cycle in spite of low prices for natural gas,” Miller said. “After two years of sharp growth in revenues, collections have leveled off over the past half year as we close in our all time high from December 2008.”

The positive turn on gross receipts comes after collections dropped below the prior year during three of the past seven months, including August. However, oil and natural gas production collections have been consistently lower than the prior year for 10 months.

“Sales tax collections, generally viewed as a measure of consumer confidence, are up almost six percent in September,” Miller said. “This is obviously a good sign, even though sales tax has been growing by double digits for much of the past year.”

FY13 General Revenue Collections 0.4% above estimates

OKLAHOMA CITY – Total collections to the state’s General Revenue Fund slowed in August, but sales tax growth remained a silver lining for the Oklahoma economy, Secretary of Finance Preston L. Doerflinger said Wednesday.

"Our overall collections have been diminished by low energy prices in the final months of the last fiscal year, plus refunds made during the first two months of Fiscal Year 2013," Doerflinger said. "And the drought undoubtedly has had some negative effect. But those factors haven’t dampened consumer confidence."

The finance secretary, in releasing his monthly General Revenue Fund report, added: "We’ve also seen lower than expected personal income tax collections, but part of that is related to the timing of the remittance of withholding taxes. This has been overcome largely by sales taxes, which beat prior year collections by double digits over the first two months this fiscal year."

Total collections to the General Revenue Fund for the month of August were $386.4 million, down $28.4 million and 6.8 percent from a year ago. The amount collected for the month was $17 million and 4.2 percent lower than the estimate.

It was only the third time since April, 2010, that monthly GRF collections had been below both prior year receipts and the estimate.

Doerflinger said it is important to note that despite the lull in personal income and oil and natural gas tax receipts, total GRF collections for July and August were still above the estimate by 0.4 percent. Sales tax collections, however, beat the estimate by 4.1 percent in July and by 6.3 percent in August. Sales tax receipts in August also exceeded the prior year by 12.1 percent.

"It’s too early to proclaim a slowdown in the Oklahoma economy, which has had an incredible rebound from the recession over the past two years" he said. "After all, sales tax growth is perhaps the leading indicator of our economic strength, our corporate taxes are up and our 4.9 percent unemployment rate is the envy of neighboring states.

"Gov. Mary Fallin has gained national attention for her job recruiting efforts and for her pro-growth policies that have helped the Oklahoma economy recover. Our constitutional Rainy Day Fund now has a near-record $577 million in it after being completely drained as a result of the recession. In short, the Oklahoma economy appears to have a lot of power and vitality moving forward."

Doerflinger said his only real worry at this point stems from external factors such as financial troubles abroad and the failure of the president and Congress to reach an agreement on the federal budget.

"I hope another national financial calamity does not happen," he said, "but it’s critical to be prepared just in case. I applaud Speaker-designate T. W. Shannon’s plan for a legislative study to develop contingency plans in the event Washington doesn’t gets its act together and that leads to massive cuts in federal funds going to the states.

"At the Office of Management and Enterprise Services, we have requested agencies to notify us as we go through the budget request process of any known impact from the sequestration provision of the federal Budget Control Act. That will give us a sense of which programs will be subject to cuts if the federal budget issues are not resolved and automatic reductions are triggered."

Governor Fallin said, "The latest revenue report paints the picture of an Oklahoma economy that is fundamentally sound. While some collections have slowed, overall revenues in this Fiscal Year continue to be above initial estimates and sales tax revenues continue to grow at a strong clip. Furthermore, other economic indicators – like the state’s 4.9% unemployment rate – remain strong.

"Our recent economic success, however, won’t continue unless we continue our laser-like focus on pro-growth reforms. For Oklahoma to continue its forward momentum we will need to continue to pursue job creating policies here on a state level."

The Governor added that "Oklahoma will continue to be affected by national and international forces that remain outside of our control. Global energy prices, uncertainty surrounding policies from Washington, and the potential for massive military spending cuts under ‘sequestration’ all have the potential to dramatically impact our economy and our revenue collections. As governor, I will continue to advocate for those policies that support Oklahoma job creation and economic growth."

General Revenue collections for the first two months of the new fiscal year were $775.5 million, down $22 million or 2.8 percent from the same two months of FY-2012 but remained $3 million or 0.4 percent above the estimate.

Major tax categories in August contributed the following amounts to the General Revenue Fund:

Tribal gaming fee growth slowing

Oklahoma State Capitol - After experiencing several years of extensive growth, state collection of fees on tribal gaming are showing signs of leveling off.

While fees paid to the state by tribal nations for use of electronic and card games covered by compacts has grown from $14.2 million in Fiscal Year 2006 to $123.9 million in Fiscal Year 2012, officials believe collections could be at or near their peak.

Read more in Treasurer Ken Miller’s Oklahoma Economic Report released last week.

Record Rainy Day Fund Deposit Announced

OKLAHOMA CITY – Sales tax revenue climbed by 13.1 percent in June over the previous year as Oklahoma closed out Fiscal Year 2012 collections to the General Revenue Fund with enough money to make a record $306.8 million deposit into the state's Rainy Day Fund, Secretary of Finance Preston Doerflinger announced Tuesday.

"This preliminary report drives home the role consumer confidence has played in Oklahoma's economic recovery in the fiscal year ending June 30," Doerflinger said. "For the year, sales tax collections rose by 9.7 percent over the prior year. In June and at other times during the year, strong sales taxes helped ease energy tax variances due to low prices and tax rebates."

Tuesday’s report shows FY-2012 collections to the General Revenue Fund totaled $5.543 billion. This amount was $405.3 million and 7.9 percent above collections for FY-2011 and $306.8 million, or 5.9 percent above the estimate for FY-2012.

"It's stunning to realize that the Rainy Day Fund contained only $2.02 when Gov. Mary Fallin took office less than two years ago." Doerflinger said. "With this deposit added to last year's $249 million deposit, we now have $556 million in our savings account and have moved within striking distance of the all-time record of $596.6 million reached before the recession."

Gov. Fallin said, "It's great to end the 2012 fiscal year on a high note, as the entire year was a boon for the Oklahoma economy as collections exceeded the previous year by nearly 10 percent. Since January 2011, we've had positive growth over the prior year in 16 out of 18 months, and we've had double-digit growth in 10 months. We’ve also had a net increase of 38,200 jobs in the past 12 months ranking our state second in the nation for job creation. Our pro-business policies are succeeding in growing the economy and providing more opportunities for Oklahoma families.

"Looking ahead to next year, it's important we continue our focus on policies such as workforce development and education reform, government modernization, as well as tax reform that will help us bring even more jobs and investment to the state."

Doerflinger said he is hopeful that energy prices will improve during the new fiscal year, "understanding the impact of the oil patch on the Oklahoma economy. But our recovery has been broad-based, as high-lighted by the Oklahoma Department of Commerce's recent Economic Snapshot.

"That report, among other things, pointed to Oklahoma gaining more than 38,000 jobs since the first of the year, ranking second among the states. We lost a few hundred manufacturing jobs in May, but kept our No. 1 ranking in that area with a growth rate of 6.6 percent.

"I also found it interesting that our unemployment rate dropped to 4.8 percent in May at the same time the number of Oklahomans seeking jobs increased. Other states with low jobless rates have seen their workforce numbers shrink."

Oklahoma's unemployment rate is the fifth lowest in the country and compares to the national rate of 8.2 percent.

June Revenue Collections Fall Below Prior Year

OKLAHOMA CITY – Oklahoma finished the fiscal year well into the black, but the last month saw the largest decline of the year in gross production tax collections, State Treasurer Ken Miller announced today as he released the gross receipts report for June and fiscal year 2012.


Total collections in June were pushed negative compared to the same month of the prior year due to a 42 percent drop in gross production collections. It was also the seventh consecutive monthly decline in gross production tax collections from the same month of the last year. June marked only the second month in the fiscal year where total collections dipped below the prior year.

“Reductions in gross production and personal income tax collections combine to set our monthly number back, but other economic indicators, such as sales receipts, low unemployment and solid corporate profits, point to continued expansion,” Miller said.


June collections are down by 0.6 percent from June of last year, Miller said. That compares to average growth during FY 2012 of 7.7 percent, including a 10.3 percent increase in income tax collections.


Natural gas prices and timing

Miller Issues June Economic Report

State Treasurer Ken Miller released his June Economic Report over the weekend.


Miller says in the report:

"States have less than six months to prepare for the first set of consequences of Washington’s inability to reach agreement on reducing the national debt. The last battle over raising the federal government’s debt limit resulted in the Budget Control Act of 2011 that mandates $1.2 trillion in spending cuts over 10 years, beginning January 2013.

"One likely place federal spending will be reduced is in payments to state governments for operation of mandated programs."

Click here to read the full report 

Two-year Revenue Growth Streak Ends as Collections Fall

OKLAHOMA CITY – Oklahoma’s two-year revenue growth streak has come to an end as total revenue collections in March fell slightly lower than collections from the same month last year, State Treasurer Ken Miller said last week as he released the March gross receipts report.

Total collections for the month were $920.6 million, down by about $2.6 million or 0.3 percent from March of last year. Miller said the biggest drop among the major sources of revenue came from the gross production tax, which fell by more than one-third.

Income tax collections were lower for the first time in eight months with negative corporate income tax collections weighing down the slightly positive personal income tax receipts.

Sales tax receipts are the only major revenue source that outperformed the previous year with collections surging 15 percent compared to March 2011.

Watching the energy sector

“In the coming months, we will closely watch the energy sector as it is a leading sector of Oklahoma’s economy,” Miller said.

Gross production collections were down in March for a fourth consecutive month, reflecting the impact of low natural gas prices. On Monday, the spot price of natural gas closed at its lowest point for the year, below $1.90 per thousand cubic feet (mcf), at the Henry Hub in Louisiana, the primary marketplace for Oklahoma-produced natural gas.

“While one month does not a trend make in overall revenue collections, four continuous months of decreasing gross production collections is getting trendy,” Miller said. “And due to the timing of gross production collections, March receipts reflect market activity from January. We should expect a period of shrinking natural gas tax collections until prices rebound, especially if the price triggers a lower extraction tax rate.”

Miller said state financial authorities will keep a close eye on natural gas prices.

“Next year’s official revenue estimate reflects natural gas at $3.64 per mcf,” he said. “In addition, state law mandates the currently assessed tax rate of seven percent be lowered to four percent if the average monthly price falls below $2.10 per mcf.”

Miller said the energy sector, which helped bolster Oklahoma’s recovery from the national recession, is tied to approximately one-third of the state’s economic activity.

“Undoubtedly, the strong price of crude oil is helping to compensate for the downturn in natural gas prices,” he said.

The exact percentage of gross production revenue generated by natural gas in March is not yet calculated, but the trend over the past several months has been downward. In October, it was 51 percent. In February, it was 35 percent.

Some positive news

Revenue Collections End Fiscal Year on High Note

OKLAHOMA CITY – General Revenue Fund collections hit a high note to end 2011, recording double-digit growth in December and for the first 6 months of the current fiscal year, Office of State Finance Director Preston Doerflinger announced Tuesday.

"We had the best two months of the 2012 fiscal year in November and December, putting an exclamation point on our recovery from the Great Recession," Doerflinger said as he released the OSF's monthly General Revenue Fund report.

In December, total collections grew by 19.3 percent over the same month a year ago, while beating the official estimate by 16.6 percent.

That came on the heels of November's report showing growth of 22.6 percent and 18 percent, respectively, for that month over November of the prior year and the estimate.

"As we look toward the second half of the fiscal year, it is unrealistic to expect that such dramatic increases in receipts will continue on a month-to-month basis," said Doerflinger, secretary of finance in Gov. Mary Fallin's cabinet. "But all signs point to our economy continuing to outperform other states in our region and the nation as a whole."

"A big reason for this," he continued, "has been the mini-boom in the oilfields, which has generated economic activity throughout our economy and contributed to our growing manufacturing base.

Oklahoma Economy Celebrating 22 Consecutive Months of Growth

OKLAHOMA CITY – Oklahoma’s economy quickened the pace of its recovery during 2011, State Treasurer Ken Miller said yesterday as he released the state’s monthly gross receipts report.

“December was 11.1 percent better than the prior year, the fourth quarter was 10.5 percent ahead of the final three months of 2010, and total year collections surpassed the previous year by 9.6 percent,” Miller said. “We saw healthy growth each month ranging from four to 16 percent with an average at the double-digit mark.”

Miller said December was the fifth time in the past eight months that collections rose by more than 10 percent over the prior year and marked the 22nd consecutive month of growth.

“Twelve-month collections now stand more than $1.3 billion higher than in February of 2010. Since we hit the trough almost two years ago, more than 68 percent of the revenue lost from our peak in December 2008 has been recovered,” he said.

Miller said sales tax collections indicate a happy holiday shopping season in Oklahoma. December collections, reflecting sales between mid-November and mid-December, were $20.42 million or 6.3 percent higher than the last Christmas shopping season.

Looking forward

National and state-specific forecasts point toward continued economic improvement.

Recent Bureau of Labor Statistics data list Oklahoma with year-over-year employment growth of three percent, surpassing all surrounding states. The closest competitor was Texas with growth of 2.2 percent.

A U.S. Chamber of Commerce report shows Oklahoma with the nation’s fourth lowest unemployment rate, adding jobs 3.5 times faster than the national rate in 2011.

During the past 12 months, figures from the Oklahoma Employment Security Commission and Bureau of Labor Statistics show the number of jobs grew by almost 16,500, while the labor force grew by just more than 3,000. During that time, the unemployment rate dropped from 6.9 percent to 6.1 percent.

Nationally, The Conference Board reports consumer confidence grew in December from the month before and now stands at levels not seen since April. Closer to home, the Creighton University Economic Forecasting Group anticipates Oklahoma in 2012 will have the second highest growth in gross state product in the nine-state Mid-America region at 4.6 percent. North Dakota is forecast to grow at 6.8 percent.

December collections

Oklahoma Has Regained Nearly 60% of Pre-Recession Revenue

OKLAHOMA CITY – In spite of external threats, volatile markets and global instability, Oklahoma’s economy is rising above the chaos, State Treasurer Ken Miller said today as he released the state’s monthly gross receipts report.

“With yet another month of healthy collections, it appears Oklahoma’s economy is hitting its stride,” Miller said.

October collections were 7.4 percent higher than in October of last year, showing steady improvement in the state’s economy. Collections over the past 12 months are up almost nine percent from the previous 12 months.

Treasurer Ken Miller

Miller said gross revenue, a reflection of the state’s economic performance, has grown for 20 consecutive months.

“We have regained almost 60 percent of the revenue that disappeared during the recession,” he said. “We saw a more than $1.9 billion drop in 12-month receipts between December 2008 and February 2010. Since then, we have seen an increase of more than $1.1 billion.”

Oklahoma: A positive example

As world financial markets react to uncertainty in Washington, Europe and the Middle East, Miller said Oklahoma’s economy is setting a positive example.

“Oklahoma’s two major revenue streams, income tax and sales tax, are showing remarkable resilience,” he said. “Income tax collections – up by almost 12 percent this month – show Oklahomans are making more money, and sales tax collections – up by almost nine percent – show we are also gaining confidence.”

Miller said the latest Business Conditions Index for Oklahoma continues to reflect a positive outlook for the state’s economy. The index for October shows anticipated growth for the next three to six months.

Oklahoma Economic Report Released for October

State Treasurer Ken Miller has released the October edition of the Oklahoma Economic Report. 

Stories this month include:

• Guest commentary by Governor Mary Fallin
• Tax reform brewing
• Oklahoma economy shows steady growth
• First quarter general revenue exceeds estimate
• Gross receipts vs. General Revenue Fund
• Economic Indicators

Oklahoma Economy Shows Steady Growth in September

Treasurer Miller says external threats to economy were “kept at bay”

Treasurer Ken Miller

OKLAHOMA CITY – More than 18 months after revenues began climbing from the depths of the Great Recession, the Oklahoma economy is again showing steady growth across all sectors, State Treasurer Ken Miller said today as he released the state’s monthly gross revenue report.

September collections were 7.1 percent higher than in September of last year, a more moderate growth rate than what was recorded in June and August of this year when year-over-year growth topped 15 percent each month.

Miller said collections over the past 12 months total $10.43 billion, the highest level in 27 months when12-month collections in June 2009 totaled $10.57 billion.

It’s a good thing

Oklahoma Economy Hot in August

OKLAHOMA CITY – Oklahoma’s economy matched the temperatures in August, as revenue collection grew at a double-digit pace in spite of concerns of a worldwide slowdown, State Treasurer Ken Miller said today as he released the state’s monthly revenue report.

 August collections were 15.2 percent higher than in August of last year, nearly matching the year-over-year growth of 15.5 percent recorded in June. Monthly collections moderated slightly in July at 6.8 percent growth from the prior year.

Miller said collections over the past 12 months total $10.37 billion, the highest level since July 2009 when 12-month collections totaled $10.402 billion.

“During the prolonged recession, 12-month collections in Oklahoma dropped by more than $1.9 billion between December 2008 and February 2010,” he said. “As of August, we have recovered $1 billion, or more than 50 percent of that lost economic activity.”

State economic signs remain positive

Miller said other recent data signal a positive economic outlook for Oklahoma, albeit somewhat subdued.

The August Oklahoma Business Conditions Index shows expected growth in the coming months. However, the index at 56.8 is down from July’s rate of 61.9, showing consumer confidence has waned. A number above 50 indicates economic growth, while a lower number anticipates contraction.

“Understandably, people are concerned about what they’re hearing on the news about the credit downgrade, sovereign debt problems, geopolitical events and volatility in the stock market,” Miller said. “However, many Oklahomans recognize that the economy here has performed much better than elsewhere.”

July statewide unemployment rose to 5.5 percent, or by one-tenth of one percent from June, while county-by-county unemployment rates dropped in all but five of Oklahoma’s 77 counties.

Gross production taxes on oil and natural gas are showing the biggest gains in revenue collections, measured both over the past 12 months and for August, but some slowdown is expected in the coming months.

Gross production taxes, also known as severance or extraction taxes, are paid two to three months after the production occurs. Three months ago, crude oil was selling for 10 to 15 percent more than today’s prices, which means gross production collections in August are reflective of those higher prices.

Treasurer Ken Miller

“While natural gas prices have remained steady over the past several months, the drop in crude oil prices is expected to be reflected in state collections,” Miller said. “Unless crude oil production volume was increased when the price dropped, less gross production revenue will be paid to the state during the next quarter.”

August collections boom

The revenue report for August shows gross collections at $842.86 million, up $111.26 million or 15.2 percent from August of last year.

Gross income tax collections, a combination of personal and corporate income taxes, generated $238.63 million, an increase of $44.63 million or 23 percent from the previous August.

Personal income tax collections for the month are $233.57 million, up $44.37 million or 23.5 percent from the prior year. Corporate collections are $5.06 million, an increase of $0.26 million or 5.4 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $323.53 million in August. That is $18.11 million or 5.9 percent above August of last year.

Gross production taxes on oil and gas generated $101.33 million in August, an increase of $29.71 million or 41.5 percent from last August. Compared to July reports, gross production collections are down by $1.48 million or 1.4 percent.

Motor vehicle taxes produced $60.27 million, up by $6.21 million or 11.5 percent from the prior year.

Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, horse race gambling and alcoholic beverages, produced $119.1 million during the month. That is $12.6 million or 11.8 percent higher than last August.

Twelve-month collections demonstrate growth

Crisis of Confidence: State Treasurer Still Optimistic About Economy

By State Treasurer Ken Miller (Aug. 19, 2008)

OKLAHOMA CITY - It is widely understood that a free market economy has many variables on which growth is dependent. Less understood is the impact of the intangible determinant called confidence – how people feel about their financial situation, business and the direction of the country.

Lately, there has been a great deal of attention focused on this translucent and sometimes irrational economic variable. Such discussions center on how recent events affect public confidence. 

The consensus is that insufficient fiscal policies, the credit downgrade, debt problems here and abroad, geopolitical events and volatility in the stock market have lessened consumer, producer and investor confidence and have contributed to anemic GDP and job growth.

An economist from Moody’s rating agency blamed the current economic malaise on a “crisis of confidence.” The fear is that the negativity will create a self-fulfilling prophecy resulting in a vicious downward cycle and another recession.

Rainy Day Deposit Estimate Increased by $30 million

OKLAHOMA CITY — General Revenue Fund collections showed moderate growth in July, Office of State Finance Director Preston Doerflinger said Monday. He also announced that the deposit into the state's Rainy Day Fund will be $30 million more than originally expected.

"A final reconciliation of all sources contributing to the General Revenue Fund raised the deposit into the Rainy Day Fund to $249.2 million, compared with last month's estimate of approximately $219 million," Doerflinger said.

"This is really no surprise," Doerflinger said of the more moderate total growth figures. "We fully expected that the growth rate would moderate eventually, simply because collection of some revenue, such as income taxes, can vary greatly from month to month. We're still showing steady growth and I am optimistic that we can maintain that in future months."

Doerflinger, secretary of finance, added: "I'm concerned, of course, by Wall Street's reaction to the debt ceiling debacle in Washington and the downgrading of our country's bond rating. But this should not overshadow the progress we've made economically here in Oklahoma."

Gov. Mary Fallin also had a positive reaction to the latest GRF figures. "Our increasing revenues further show the Oklahoma economy is on the right track," the governor said. "As we begin a new fiscal year, it's also good news to see another significant deposit into our Rainy Day Fund.

Oklahoma can continue to build upon this positive momentum by pursuing the kind of pro-business policies that will attract new jobs and investment, which will lead to continued revenue growth," Gov. Fallin added.

Only time will determine the direction of the national economy, which some economists argue might be headed for another downturn that could dampen Oklahoma's robust recovery from the last recession. But Doerflinger remains hopeful about the state's economic future.

"Consumer confidence has been high in Oklahoma and our revenue collections have been stronger than most states for some time now," he said. "We saw pent-up demand leading to a buying spree by Oklahomans in 2011. While you could expect buying to level off this year, I see no reason for our citizens to succumb to the doom-and-gloom predictions of some economists."

Doerflinger pointed out that the state's unemployment rate held steady at 5.3 percent for 2 months in a row, compared with a national rate topping 9 percent.

"And unlike the systemic weakening of the manufacturing sector across the nation, Oklahoma over a 12-month period added 11,200 manufacturing jobs by June of this year," he said.

"Officials at the Oklahoma Employment Security Commission and in the energy industry attribute much of the gain in manufacturing jobs to a resurgence of activity in the oil patch due to strong oil prices and improved drilling techniques," Doerflinger said.

Many of the manufacturing jobs created in Oklahoma have been in the area of durable goods to meet the demands of the energy sector, officials say.

"While oil and natural gas prices have also taken a hit on Wall Street, some national experts continue to forecast that worldwide demand will cause an uptick in energy prices in 2012," Doerflinger said.

"That would bode well for Oklahoma, as far as state revenue collections go," he added. "But the commodity market has been known for volatility historically, and we'll be watching this area very closely in the months ahead."

The higher deposit into the Rainy Day account is important in case funding emergencies develop in the future. The constitutional reserve fund was drained to $2.03 after it had to be tapped during the last recession to ease huge budget shortfalls. It had reached a record $596.6 million at one point.

Oklahoma Economy Strong Enough for a $219 Million Rainy Day Fund Deposit

Office of State Finance Director Preston Doerflinger announced Monday that the bone-dry Rainy Day Fund will be replenished with a deposit of approximately $219 million after General Revenue Fund collections closed out the 2011 fiscal year on a roll.

"It will be the largest deposit into our constitutional reserve fund since the end of the 2005 fiscal year," Doerflinger said. "And while we will likely face a tight budget again next year, this enhances stabilization of Oklahoma's overall revenue situation."

Doerflinger, secretary of finance in Gov. Mary Fallin's cabinet, made the announcement as he released the final General Revenue Fund report for June, wrapping up the FY-11 fiscal year. The FY-12 fiscal year started July 1.

June revenue collections from all major sources continued to beat the official state estimate and last year's receipts, led by income, sales and energy taxes," the OSF director said.

"We’re getting economic traction in all areas, including some where it appears stagnation has set in for the national economy. Specifically, recent declines in Oklahoma's unemployment rate coincide with strong GRF income tax collections, both individual and corporate," Doerflinger said.

Oklahoma's jobless rate fell to a 28-month low of 5.3% in May. That compares to a national unemployment rate exceeding 9 percent. As late as March 2010, the state unemployment rate stood at 7.3%.

Preliminary estimates show total June GRF collections hitting $576 million, an increase of $78.1 million or 15.7% from the prior year and $66.2 million or 13% over the estimate.  As is often the case, June was the strongest revenue month of the year.

The end-of –the-fiscal-year total was $5.1 billion, an increase from the prior year of $487.1 million or 10.5 percent.  Collections for 12 months topped the estimate by $219.4 million or 4.5 percent, according to preliminary figures.

Gov. Mary Fallin

"This month’s revenue report is one more sign that things are trending up in Oklahoma," said Gov. Mary Fallin. "It is great news that tax revenues continue to climb, unemployment is ticking down and the state is quickly replenishing its Rainy Day Fund."

"Looking forward, we need to keep our momentum going in the right direction by continuing to pursue the kind of pro-business policies that bring more jobs and tax revenue into Oklahoma."

The state's Rainy Day account had dwindled to only $2.03 after it had to be tapped during the recession to ease huge budget shortfalls that threatened essential state services. It had reached a record $596.6 million before the recession.

The balance in the state savings account could reach new heights in the future years, thanks to adoption by voters of a constitutional amendment in 2010 raising from 10% to 15% the ceiling on prior year GRF funds that can be deposited into the fund.

Having a healthy amount of money in reserve is important for several reasons, including meeting funding emergencies. It also is one item national bond rating companies consider when rating a state. Having a high bond rating permits states to get low-interest financing for public infrastructure projects, saving taxpayers money.

Oklahoma's energy industry has played a significant role in Oklahoma's ongoing recovery from the effects of the deep national downturn, providing high-paying jobs that lead to higher income and sales tax collections.

"Oil revenue bolstered our General Revenue Fund in Fiscal Year 2011 and a surplus from the source helped us provide additional funds for educational entities that they were able to use for the end of the 2011 fiscal year or carry into 2012," Doerflinger said.

"I was particularly pleased to see natural gas revenue rebound in June after being a drag on total gross production tax collections for much of the last fiscal year. This is one area we will be watching closely in the months ahead," he added.

General Revenue Fund collections for the major tax categories in June were:

June Revenue Shows State Economic Growth Accelerating

Treasurer warns Washington inaction on debt could harm state recovery

Oklahoma’s economy is expanding at an accelerating pace, Treasurer Ken Miller said yesterday as he released the revenue report on total tax commission collections in June.


“Now entering the third year of the cyclical expansion, Oklahoma’s double-digit revenue growth last month shows our state’s economy is clearly regaining its strength while the national economy continues its rather anemic growth.” Miller said.


“Gross receipts, reflecting a cross-section of the state’s economic activity, are encouraging from top to bottom,” he said. “Again this month, every major category shows growth with earnings and consumption especially strong.”


June collections compared to a year ago surged by more than 15 percent, the report from the state treasurer’s office shows. Collections for the past 12 months are almost eight percent above the trailing 12 months, according to the report. “Month after month, the Oklahoma economy gains steam,” Miller said. 


External Threats


Click here to read the full report

State Treasurer Posts June Economic Report

Treasurer Ken Miller

The June edition of the Oklahoma Economic Report from the State Treasurer's Office is now available.
Click here to read it.

The report is also available at the Treasurer's web site: www.treasurer.ok.gov

Stories this month include:

• Cash in the attic
• Treasurer’s Commentary: Zero tolerance
• Revenue collections reach recovery milestone
• Larger Rainy Day Fund deposit expected
• Capital markets snapshot & Economic Indicators