Amidst the ongoing fiscal tracking in the state, the Tennessee Department of Finance and Administration has noted both gains and shortfalls in its June 2023 revenue report. According to a disclosure on the department's website, revenue collections for the month came in at about $2.294 billion. This number denotes a slight increase from the previous year, by $34.8 million, yet still falls short of the budgeted projection by $31.5 million. Tennessee Finance and Administration Commissioner, Jim Bryson, remarked on the financial landscape, saying "Total revenues in June showed positive gains compared to last year" and pointed out that sales tax receipts demonstrated moderate growth reflecting May consumer activity, according to the Tennessee Department of Finance and Administration.
While the overall growth rate for June stood at 1.54 percent, there exist variations in performance across different tax categories. Sales taxes didn’t hit the original forecast for June, trailing by $14.8 million, though they marked a 2.23 percent increase from June of the last year. Corporate tax revenue in terms of franchise and excise taxes experienced a negligible decline compared to June 2023, yet, for eleven months, these figures are down by a sharp 5.91 percent. On the upside, revenues from both gasoline and motor fuel exceeded the expectations for the month by $0.5 million and have surpassed estimates by $6.8 million on an eleven-month timeline.
During this fiscal period, the state's general fund recorded less than anticipated, with a shortfall of $32.1 million, contrasting with the four other funds related to state tax revenues that slightly exceeded their estimates. A detail about the motor vehicle registration revenue reflects a positive variance, with June’s figures coming in at $1.3 million above the estimate, and revenues to date surpassing estimates by $6.1 million. The more concerning figures pertain to tobacco and privilege taxes, both tracking below the June estimates by $2.3 million and $4.1 million, respectively. On the other hand, business tax revenue came in just below $0.2 million less than expected for June.
The state's fiscal posture hinges closely on projections and revisions made by the State Funding Board, which, after a November 2023 meeting, opted for revised revenue growth ranges for the current fiscal year. In the following Spring, the legislature passed a bill incorporating these revised ranges. Acknowledging this, Bryson remains optimistic, stating, "With one month remaining in this fiscal year, the state seems to be on track to meet the revised 2023-2024 growth rates adopted by the State Funding Board and enacted by the General Assembly." Yet the year-to-date revenues for eleven months point to a substantial deficit, falling short by $555.2 million against the budgeted estimate, as per the Tennessee Department of Finance and Administration.
