Just how much the energy downturn has affected state government revenue is reflected again in the latest figures released by the Oklahoma Office of Management and Enterprise Services which show February gross production tax collections were down more than 83 percent from a year ago.
“March’s deepened midyear revenue failure reduction was necessary because the rest of the year is projected to look a lot like February,” said Preston Doerflinger, Secretary of Finance and head of OMES. “It bears repeating that the most responsible way out of this is by adding stable, recurring revenue into the next budget as the governor proposed and is actively discussing with the legislature.”
Astounding plunges in energy collections were reported including a nearly 97 percent drop in oil collections from the previous year. The tax on oil brought in only $470,871 or a drop of $14.7 million below the estimate and $21.7 million below the prior year. Natural gas collections totaled $5 million which was $25.1 million or 83.4 percent below the estimate and $25.3 million or 83.5 percent below the previous year.
Overall gross production tax collections were $5 million which was $25.1 million or 83.4 percent below the estimate and $25.3 million or 83.5 percent below the year before.
Doerflinger said the state’s General revenue Fund collections missed the state’s official estimate by 18 percent, which was the widest margin below the estimate so far this year. February GRF collections were $225.6 million but they were $49.4 million or 18 percent below the estimate on which the Fiscal Year 2016 appropriated state budget was based. Those same collections were $75.9 millio nor 25.2 percent below the prior year collections.
The General Revenue Fund collections for the first eight months of the fiscal year were $3.3 billion. However, that amount was $327 million or 8.9 percent below the official estimate and $356.5 million or 9.7 percent below the prior year collections.
