Tennessee Dec. Tax Revenues Exceed Projection
Tennessee revenue collections for December came in stronger than the same month a year before. Finance and Administration Commissioner Mark Emkes reported today that state revenue collections for December were $982.2 million, which is 1.71% above December 2011. December sales tax collections represent consumer spending that occurred in November.
“Total revenues in December were higher than expected due to over collections in the sales and corporate tax categories,” Emkes said. “We believe the December sales tax growth rate, which includes ‘Black Friday’ and after-Thanksgiving sales, may reflect renewed consumer confidence, but January’s report will give us a fuller picture with Christmas retail activity.
“Because of anticipated requirements for Fiscal Year 2014, we will closely monitor our spending for the balance of this year, working closely with the Legislature in order to end this year with a balanced budget.”
On an accrual basis, December is the fifth month in the 2012-2013 fiscal year.
December collections were $22.0 million more than the budgeted estimate. The general fund was over collected by $24.8 million and the four other funds were under collected by $2.8 million.
Sales tax collections were $11.7 million more than the estimate for December. The December growth rate was 5.01%. For five months revenues are under collected by $18.3 million, and the year-to-date growth rate is 2.51%.
Franchise and excise taxes combined were $12.6 million above the budgeted estimate of $230.4 million. For five months revenues are over collected by $91.4 million.
Gasoline and motor fuel collections for December decreased by 7.52% and they were $3.4 million below the budgeted estimate of $66.1 million. For five months revenues are under collected by $11.8 million.
Tobacco tax collections were $2.2 million below the budgeted estimate of $24.9 million, and for five months they are $6.7 million below the budgeted estimate.
Privilege tax collections were $3.8 million more than the budgeted estimate of $14.5 million. Year-to-date collections for five months are $10.8 million above the budgeted estimate.
Inheritance and estate taxes were under collected by $1.6 million for the month. For five months collections are $4.4 million above the budgeted estimate.
All other taxes were over collected by a net of $1.1 million.
Year-to-date collections for five months were $73.6 million more than the budgeted estimate. The general fund was over collected by $84.1 million and the four other funds were under collected by $10.5 million.
The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.
The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19 and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.
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Last Update on January 29, 2015 18:35 GMT
WASHINGTON (AP) -- The number of people seeking unemployment aid plunged last week to the lowest level in almost 15 years, a sign hiring will likely remain healthy.
The Labor Department says weekly applications dropped 43,000 to a seasonally adjusted 265,000, the lowest level since April 2000. That is also the biggest decline in two years. The four-week average, a less volatile measure, fell 8,250 to 298,500.
The latest drop may have been exaggerated by the federal holiday, which likely slowed the processing of some claims.
Applications are a proxy for layoffs, so the sharp decline means companies are cutting fewer jobs. The four-week average has fallen 11 percent in the past year. At the same time, hiring has picked up. Employers added almost 3 million jobs last year, the most since 1999.
WASHINGTON (AP) -- Average long-term U.S. mortgage rates rose slightly this week after four straight weeks of declines, while remaining near historically low levels.
Mortgage company Freddie Mac says the nationwide average for a 30-year mortgage edged up to 3.66 percent from 3.63 percent last week. The new average rate is still at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, increased to 2.98 percent from 2.93 percent last week.
A year ago, the average 30-year mortgage stood at 4.32 percent and the 15-year mortgage at 3.40 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
WASHINGTON (AP) -- Despite signs that the economy is returning to health, two new reports suggest that most Americans are walking a dangerous financial tightrope.
An analysis of Fed survey data by the Pew Charitable Trusts finds 47 percent of U.S. households say they spend all of their income, go into debt or dip into savings to meet their annual expenses.
The Pew analysis found that if a typical middle-class household had to weather a period of joblessness without any income, its available savings would be exhausted within 21 days. And if that same family also cashed in all their retirement investments to get by, they would burn through those assets within four months.
A separate economic scorecard released today says nearly 56 percent of U.S. consumers have subprime or near-prime credit scores, meaning they must pay a premium to borrow if they qualify at all for traditional loans and credit cards. And roughly 20 percent of households depend on "fringe financial services" such as payday lenders, according to the report by the nonprofit Corporation for Enterprise Development.
WASHINGTON (AP) -- The White House says President Barack Obama's budget will propose spending $74 billion more than current spending caps. That would be an increase of about 7 percent.
Obama plans to release his budget for the next fiscal year on Monday. The White House says Obama will propose $530 million for domestic programs, which is $37 billion more than the limits established by so-called sequestration.
Obama will also propose $561 billion for defense spending. That's an increase of $38 billion over the spending limits.
Obama wants to do away with the across-the-board cuts that Democrats and Republicans agreed to in 2011 in an attempt to reduce the federal deficit.
WASHINGTON (AP) -- The Republican-controlled Senate is moving toward passage of a bipartisan bill approving the Keystone XL oil pipeline.
The move defies a veto threat and sets up the first battle with the White House over energy and the environment.
The Senate plans to vote later Thursday. It's the first measure taken up by the Republican-controlled Senate, and one of the first to draw a veto threat from the president.
The bill has 60 sponsors -- enough to pass, but not enough to override a veto.
The bill would authorize construction of the nearly 1,200-mile pipeline to carry oil primarily from Canada's tar sands to Gulf Coast refineries.
Critics argue the $8 billion project would spell disaster for global warming. Supporters call it a jobs bill that would boost energy security.
ARCTIC OFFSHORE DRILLING-SHELL
ANCHORAGE, Alaska (AP) -- Royal Dutch Shell PLC says it will drill off Alaska's northwest coast in 2015 -- if it can get the permits it needs and drill safely.
Speaking in London, Chief Executive Officer Ben van Beurden said Thursday that Shell will move forward with its plan to use two drill vessels in the Chukchi (chuk-CHEE') Sea subject to getting permits and legal clearance.
Shell last drilled in Arctic waters off Alaska in 2012. One drill vessel ran aground off Kodiak. The contractor on a second was fined $12.2 million for environmental and maritime crimes.
The company is awaiting a resolution to a lawsuit that challenged the federal government's environmental review before it sold Chukchi leases in 2008.
WASHINGTON (AP) -- Safety researchers say the chances of dying in a crash in a late-model car or light truck fell by more than a third over three years, and nine car models had zero deaths per million registered vehicles.
The Insurance Institute for Highway Safety said that for 2011 models, there was an average of 28 driver deaths per million registered vehicle years through the 2012 calendar year, down from a rate of 48 deaths for 2008 models through 2009. A registered vehicle year is one vehicle registered for one year.
But the gap between safest and riskiest models remains wide. Three 2011 models had rates exceeding 100 deaths per million registered vehicle years.
The institute says Improved vehicle designs and safety technology helped reduced risk, but there were other factors too.
DEARBORN, Mich. (AP) -- Ford's net income tumbled to $52 million in the fourth quarter because of trouble at its Venezuelan operations.
Ford's earnings, of a penny per share, compared with earnings of 75 cents per share in the fourth quarter a year ago.
Without one-time items, including the Venezuela charge and separation payments in Europe, Ford earned $1.1 billion in the quarter, down 15 percent from a year ago.
Pretax earnings of 26 cents per share beat Wall Street's forecast of 22 cents per share, according to FactSet.
Fourth-quarter revenue fell 4.5 percent to $35.9 billion.
For the full year, Ford earnings fell 56 percent to $3.2 billion, or 80 cents per share.
Dearborn-based Ford had repeatedly warned that its profits would be down in 2014 as it introduced 24 new vehicles.
DETROIT (AP) -- Hundreds of Detroit homeowners at risk of losing their property are flocking to hearings that offer them a last-ditch chance to avoid foreclosure from tax debts.
The homeowners nearly filled a long conference room in Detroit's Cobo Center while waiting for their cases to be heard. Many hoped to work out payment plans.
Detroit's neighborhoods have yet to recover from the national mortgage crisis. More than 60,000 city properties are in foreclosure, putting them at risk of being added to a huge glut of vacant houses.
Detroit is believed to have the largest number of foreclosures at any one time in the county.
Gov. Rick Snyder signed a bill this month that allows homeowners facing financial hardship to use a payment plan to pay off debts and avoid foreclosure.
ATHENS, Greece (AP) -- The European Parliament's president is to be the first European official to visit Athens, a day after announcements by Greece's nascent radical left government on rolling back a series of key budget commitments sent the country's stock market plummeting.
Martin Schulz arrives in Athens Thursday for meetings with government and opposition officials, a day ahead of eurogroup head Jeroen Dijsselbloem. Both visits are being closely watched for indications of how Alexis Tsipras' government intends to proceed in bailout negotiations.
Wednesday's hard line prompted a quick EU warning and sent local investors into a panic on the prospect that Greece might be cut off from its financial lifeline.
Ahead of his visit, Schulz wrote in an online article that Tsipras must "reach out for compromise both inside and outside the country."
RUSSIA-WORLD CUP BUDGET
MOSCOW (AP) -- Russia's Sports Minister says the government will cut the budget for hosting the 2018 World Cup as part of plans to slash state expenditure while recession looms.
The Russian government is cutting its spending by 10 percent across the board after the central bank predicted last month that the economy could contract by up to 4.7 percent this year.
Mutko, who is a FIFA executive committee member, said in comments reported by the Tass news agency that World Cup stadiums and associated infrastructure would be exempt from the cuts, but "various organizational issues" and "subsidies to the organizing committee" would be cut. He did not provide specific figures.
This month, FIFA President Sepp Blatter said he had been assured by Russian President Vladimir Putin that economic problems would not affect the tournament.
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