revenues

State Funding Board meeting canceled

A meeting of the State Funding Board scheduled for this week has been canceled.

The panel comprised of the comptroller, treasurer, secretary of state, and finance commissioner is tasked with coming up with the state’s revenue estimates and approving incentive deals for economic development projects.

Gov. Bill Lee told reporters over the weekend the State Funding Board would be meeting to discuss the fiscal “metrics” the state’s spending plan will have to be adjusted to.

A State Funding Board spokesman says this week’s meeting was canceled because there were no items on the agenda to discuss. Revenue projections could be discussed at a future date, though nothing has been scheduled.

State lawmakers plan to return to the Capitol complex next week to start laying the groundwork for their return into session on June 1.

(This post has been updated with comments from a spokesman for the State Funding Board)

General fund revenues fell $651M short of projections in April

Tennessee general fund revenue collections in April fell $651 million short of the projections established before the the coronavirus pandemic wrought havoc on the state’s economy.

Corporate franchise and excise taxes fell $487 million short of estimates, though a large portion of that may be explained by the governor’s decision to delay the filing deadlinefrom April to July. Sales tax revenues were $61 million less than projected in the month.

April revenue collections reflect economic activity in March, meaning the full budget impact of the pandemic won’t likely reveal itself until next month’s figures are released.

Here is the release form the state Department of Finance & Administration:

NASHVILLE – Tennessee Department of Finance and Administration Commissioner Butch Eley today announced that revenues for April were less than the monthly revenues from the previous year. Overall state revenues for April were $1.3 billion, which is a negative growth rate of 39.75 percent compared to last year and $693.8 million less than the state budgeted.

“The signs of economic downturn due to the COVID-19 pandemic have begun to appear in Tennessee’s April tax receipts,” Eley said. “April sales tax revenues, reflecting March taxable sales activity, were weakened as the state began to withdraw from its usual patterns of consumer spending by mid-month.  Franchise and excise tax receipts, along with Hall income and business taxes are also notably reduced due to filing extensions that will allow individuals and businesses to report their taxable activity later in the year.

“It has been 10 years since an economic downturn has impacted state revenues. The state’s large monthly revenue surpluses built up throughout the beginning of the year will now be tested as the pandemic’s impact begins to erase those gains.  Yet, we remain committed to keeping the state’s budget in balance despite the current challenges.”

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