Tennessee now has significant surplus as it enters planning phase for 2024 budget
The State of Tennessee has collected $2 billion more in revenue than was projected for the fiscal year ending on June 30th. Final revenue numbers for the fiscal year will be available in late August.
The latest revenue numbers released by the state's Department of Finance and Administration show the state collected $117 million more in May of 2023 than was budgeted. On an annualized basis, the overcollection is $2 billion for this year, which means a revenue increase of nearly $100 million more each month when compared with last year.
Commissioner of Finance and Administration Jim Bryson said the overall revenue situation remains positive.
“May revenues exceeded the budgeted monthly estimate, and sales tax collections, fuel taxes, and business tax proceeds all continued to grow during the month,” said Bryson. “Corporate tax revenues, which are represented in franchise and excise taxes, were short of budgeted estimates, however they continue to show positive growth for the year. Because corporate tax revenues fluctuate more than other tax revenues, we will closely monitor these trends in the months ahead."
Sales tax revenues were $112.1 million more than the estimate for May and 1.84 percent more than May 2022. For ten months, revenues are $1.2 billion higher than estimated. The year-to-date growth rate is 7.61 percent.
While franchise and excise tax revenue was down in May, the overall trend for the year has been positive. Franchise and excise tax revenues combined were $8.4 million less than the budgeted estimate in May and the growth rate compared to May 2022 was negative 23.83 percent. For ten months, revenues are $699.6 million more than the estimate and the year-to-date growth rate is 6.80 percent.