NASHVILLE – The Tennessee Department of Finance and Administration announced that June revenues reached $2.294 billion. This figure is $34.8 million higher than in June of the previous year but falls $31.5 million below the budgeted estimate. The overall growth rate for the month was 1.54 percent.
Commissioner Jim Bryson noted the positive gains in June revenues compared to last year. Sales tax receipts, which reflect consumer activity from May, showed moderate growth. Corporate tax revenues, including franchise and excise taxes, remained steady compared to June 2023. Additionally, other tax revenues increased by 2.55 percent year-over-year.
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With one month remaining in the fiscal year, the state appears on track to meet the revised growth rates for 2023-2024, as adopted by the State Funding Board and enacted by the General Assembly. Bryson expressed optimism that the state would achieve the revised estimates for the year.
On an accrual basis, June is the eleventh month in the 2023-2024 fiscal year. General fund revenues were $32.1 million less than the budgeted estimates, while the four other funds sharing state tax revenues were $0.6 million above the estimates.
Sales tax revenues were $14.8 million below the original estimate for June but showed a 2.23 percent increase compared to June 2023. For the eleven-month period, revenues are $138.9 million below the estimate, with an August through June growth rate of 1.70 percent.
Franchise and excise tax revenues combined were $14.1 million below the budgeted estimate for June, with a growth rate of negative 0.01 percent compared to June last year. Year-to-date, these revenues are $327.7 million below the estimate, with a negative growth rate of 5.91 percent.
Gasoline and motor fuel revenues for June increased by 1.24 percent compared to June 2023, exceeding the budgeted estimate of $111.1 million by $0.5 million. For the eleven-month period, revenues are $6.8 million above estimates.
Motor vehicle registration revenues were $1.3 million above the June estimate, and for the year-to-date, revenues are $6.1 million above estimates.
Tobacco tax revenues were $2.3 million below the June budgeted estimate of $18.7 million. For the eleven-month period, they are $22.9 million below the budgeted estimate.
Privilege tax revenues were $4.1 million below the June estimate, and year-to-date, they are $117 million below the estimate.
Business tax revenues were $0.2 million below the June estimate of $13.9 million. Year-to-date, these revenues are $26.5 million above the budgeted estimate.
Mixed drink, or Liquor-by-the-drink, taxes were $0.8 million above the June estimate. Year-to-date, these revenues are $2.5 million above the budgeted estimate.
All other tax revenues were a net $1.4 million above estimates.
Year-to-date revenues for the eleven-month period are $555.2 million below the budgeted estimate. The general fund recorded $565.6 million less than the budgeted estimate, while the four other funds were $10.4 million above estimates.
The budgeted revenue estimates for 2023-2024 are based on the State Funding Board’s consensus recommendation from November 28, 2022, and adopted by the first session of the 113th General Assembly in April 2023. Any changes in revenue enacted during the 2023 session of the General Assembly are also incorporated into these estimates. These estimates can be accessed on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
On November 6, 2023, the State Funding Board met to hear updated revenue projections from various state economists. On November 29, 2023, the board adopted revised revenue growth ranges for the current fiscal year. The recurring growth ranges adopted include a low of negative 0.69 percent to a high of negative 0.19 percent for total taxes and a recurring range low of negative 0.50 percent to a high of 0.00 percent for general fund taxes.
On April 18, 2024, in the second session of the 113th General Assembly, the Legislature passed House Bill 2973/Senate Bill 2942, which included the Funding Board’s revised revenue ranges for the current year. Upon passage, revenue estimates were revised downward by $798.4 million for total funds and $718.8 million for general fund revenue. The appropriations bill, Public Chapter 966, was signed by Governor Lee on May 15, 2024.
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East Tennessee Construction Updates for July 18-24, 2024
The Tennessee Department of Transportation (TDOT) has detailed various construction projects and potential traffic impacts for East Tennessee during the week of July 18-24, 2024. Motorists are advised to be aware of possible nightly lane closures, temporary lane shifts, and reduced lanes due to resurfacing, bridge repairs, and utility work in multiple counties including Anderson, Blount, Campbell, Claiborne, Cocke, Greene, Hamblen, Hancock, Jefferson, Johnson, Knox, Loudon, Roane, Sullivan, Unicoi, Union, and Washington.