The Tennessee Department of Finance and Administration, led by Commissioner Jim Bryson, announced that the state’s revenues for February were below the budgeted estimates. The total revenue for the month amounted to $1.325 billion, marking a slight decrease of 0.43 percent compared to February 2023 and falling $59.9 million short of the projected figures.
Despite the shortfall, Bryson highlighted the resilience of the state’s economy, noting that sales tax collections were affected by severe winter weather, which disrupted consumer spending and transportation. However, there was positive growth in franchise and excise tax revenues, as well as in privilege tax receipts for the first time this year.
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Bryson emphasized the importance of maintaining stringent controls on state spending and closely monitoring revenue trends in light of the February numbers being under the budgeted estimates. The general fund revenues were $62.3 million less than expected, while the four other funds exceeded estimates by $2.4 million.
Specifically, sales tax revenues were $43.9 million below the forecast for February and 1.68 percent lower year-over-year. The franchise and excise tax revenues slightly missed the estimate by $1.5 million. On the other hand, motor vehicle registration revenues exceeded expectations by $4.7 million.
Other areas such as gasoline and motor fuel, tobacco taxes, privilege taxes, and mixed drink taxes also saw variations from the budgeted estimates. Overall, the year-to-date revenues for the seven months were $437.6 million less than anticipated, with the general fund revenues accounting for a $441.2 million deficit.
The budgeted revenue estimates for the fiscal year 2023-2024 were based on recommendations from the State Funding Board and adjusted for any revenue changes enacted during the legislative session. Detailed information on these estimates can be found on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
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