No WhiteWash!

NASHVILLE - State tax collections for May were less than budgeted, yet included positive growth in state sales tax collections.  Finance and Administration Commissioner Dave Goetz reports that overall May revenues were $767.1 million, which is $18.6 million less than the state budgeted.  May sales tax collections represent consumer spending that occurred in the month of April.

“May is the second consecutive month this fiscal year in which sales tax collections posted positive growth over the year before; and before April, we had not seen positive growth since May of 2008,” Goetz said. “This is encouraging and we hope this marks the beginning of economic recovery for Tennessee. However, we will continue to closely monitor collections and do whatever is necessary to end this fiscal year with a balanced budget and leave the next governor with a balanced budget on a recurring basis.”

On an accrual basis, May is the tenth month in the 2009-2010 fiscal year.

The general fund was under-collected by $16.5 million, and the four other funds were under-collected by $2.1 million.

Sales tax collections were $6.1 million less than the estimate for May.  The May growth rate was positive 3.70%. For ten months revenues are under-collected by $207.9 million. The year-to-date growth rate for ten months was negative 3.38%.

Franchise and excise taxes combined were $8.5 million below the budgeted estimate of $31.4 million. The growth rate for May was negative 12.50%. For ten months revenues are over collected by $54.9 million and the year-to-date growth rate is 6.86%.

Privilege tax collections were $1.4 million below the May estimate. For ten months collections are $23.8 million below the budgeted estimate.

Tobacco tax collections were $2.2 million under the budgeted estimate of $24.9 million. For ten months revenues are under collected in the amount of $3.1 million.

Gasoline and motor fuel collections for May increased by 6.38%.  For ten months revenues are under-collected by $15.4 million and the ten month year-to-date growth rate is 0.48%.

Year-to-date collections for ten months are $219.3 million less than the budgeted estimate. The general fund was under collected by $170.1 million and the four other funds were under collected by $49.2 million.

The budgeted revenue estimates for 2009-2010 are based on the state funding board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s website at http//www.tn.gov/finance/bud/budget.html.

The state funding board met on December 18, 2009 and adopted mid-year revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from negative 1.50% to negative 0.25% in total taxes, and negative 2.35% to negative 0.85% in general fund taxes. Based on the consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December.

The revised mid-year estimates are reflected on pages A-70 and A-72 in the 2010-2011 budget document and assume an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.

The funding board met again in March of this year and adopted final revenue ranges for 2009-2010.  The board’s consensus recommendation was to recognize lower growth rates than those adopted on December 18, 2009. The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes, and negative 2.31% to negative 1.78% in general fund taxes.

Based upon the funding board’s March recommendation the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million, and an under collection of $231.0 million in general fund taxes.

Tennessee revenue collections improved in April with a net positive growth of 2.23% over April collections one year ago.  Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $1.243 billion, which is $43.4 million more than the state budgeted.

“April is the first positive sales tax growth month in almost two years – since May of 2008,” Goetz said.  “Sales tax collections started their downward spiral starting in January of that year and, beginning with the month of June, recorded an unprecedented 22 consecutive months of negative collections.”

On an accrual basis, April is the ninth month in the 2009-2010 fiscal year.

The general fund was over collected by $51.4 million, and the four other funds were under collected by $8.0 million.

Sales tax collections were $9.7 million more than the budgeted estimate for April.  The April growth rate was positive 5.62%. For nine months revenues are under collected by $201.8 million. The year-to-date growth rate for nine months was negative 4.11%.

Franchise and excise taxes combined were $47.6 million above the budgeted estimate of $312.9 million. For nine months revenues are over collected by $63.4 million.

Hall Income tax collections for April were $13.8 million less than the budgeted estimate. For nine months collections are $14.2 million less than the budgeted estimate. The growth rate for the nine month period was negative 22.42%.

Inheritance and estate tax collections were $1.4 million below the April estimate. For nine months collections are $9.4 million under the budgeted estimate.

Gasoline and motor fuel collections for April decreased by 2.80%.  For nine months revenues are negative 0.15%, and $16.5 million below the budgeted estimate of $620.0 million.

Tobacco tax collections were $2.6 million under the budgeted estimate of $24.4 million. For nine months revenues are under collected in the amount of $1.0 million.

All other taxes for April, including the tobacco tax, were over collected by a net of $3.9 million.

Year-to-date collections for nine months were $200.7 million less than the budgeted estimate. The general fund was under collected by $153.6 million and the four other funds were under collected by $47.1 million

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

The State Funding board met on December 18, 2009 and adopted mid-year revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from negative 1.50% to negative 0.25% in total taxes, and negative 2.35% to negative 0.85% in general fund taxes. Based on the consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December.

The revised estimates are reflected on pages A-70 and A-72 in the 2010-2011 Budget Document and assume an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.

The funding board met again in March of this year and adopted final revenue ranges for 2009-2010. The board’s consensus recommendation was to recognize lower growth rates than those adopted on December 18, 2009. The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes, and negative 2.31% to negative 1.78% in general fund taxes.

Based upon the funding board’s March recommendation the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million, and an under collection of $231.0 million in general fund taxes.

Forbes has ranked the worst cities below for jobs.

1. Warren-Troy-Farmington Hills, Mich.
2. Morristown, Tenn.
3. Elkhart-Goshen, Ind.
4. Detroit-Livonia-Dearborn, Mich.
5. Holland-Grand Haven, Mich.
6. Kokomo, Ind.
7. Janesville, Wis.
8. Dalton, Ga.
9. Hickory-Lenoir-Morganton, N.C.
10. Waterbury, Conn.

See the following links for more information

• The Worst Cities for Jobs
• In Pictures: 10 Worst Cities For Jobs
• In Pictures: 10 Worst Mid-Size Cities For Jobs
• In Pictures: 10 Worst Big Cities For Jobs
• In Pictures: Best Mid-Sized Cities For Jobs
• In Pictures: Best Small Cities For Jobs

WASHINGTON – The housing market is facing swelling ranks of homeowners who are seriously delinquent but have yet to lose their homes, and this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.

About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some economists project it could take nearly three years before all these homes have been put on the market and purchased by new owners.

Read more via New wave of foreclosures threatens market – Washington Post- msnbc.com.

NASHVILLE – Tennessee sales tax collections continue to be a concern for the state’s general fund. Negative growth in sales tax collections continued in January, with overall January revenues coming in at $947.4 million, which is $16.1 million less than the state budgeted.

“January is the 20th consecutive month in which sales taxes have recorded negative growth.” Finance and Administration Commissioner Dave Goetz said. “January collections represent December holiday sales, which brought reports of positive growth at the national level, so it’s very disappointing that we didn’t have a similar experience in Tennessee.

“Despite the severe national recession, the state will continue to monitor spending in order to end the fiscal year with a balanced budget as required by the state’s constitution,” Goetz said.

On an accrual basis, January is the sixth month in the 2009-2010 fiscal year.

The general fund was under collected by $5.2 million and the four other funds were under collected by $10.9 million.

Sales tax collections were $20.4 million less than the estimate for January.  The January growth rate was negative 1.86%. For six months revenues are under collected by $159.0 million. The year-to-date growth rate for six months was negative 5.72 %.

Franchise and excise taxes combined were $11.3 million above the budgeted estimate of $128.5 million. For six months revenues are over collected by $5.9 million.

Gasoline and motor fuel collections for January increased by 5.77 % but were $4.2 million below the budgeted estimate of $71.2 million.  For six months revenues are under collected by $14.1 million.

Tobacco tax collections were $451,000 above the budgeted estimate of $21.9 million, and for six months they are $4.3 million over the budgeted estimate.

Inheritance and estate taxes were over collected by $1.8 million for the month.

All other taxes were under collected by a net of $5.1 million.

Year-to-date collections for six months were $185.1 million less than the budgeted estimate. The general fund was under collected by $152.3 million and the four other funds were under collected by $32.8 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

The State Funding Board met again on December 18, 2009 and adopted revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from -1.50 % to -0.25 % in total taxes, and -2.35 % to – 0.85% in general fund taxes.

Based on the funding board’s consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December. The revised estimates are reflected on pages A-70 and A-72 in the 2010-2011 Budget Document. The revised estimates assume an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.

View Revenue Collections

It’s a slow day in a small town and
streets are deserted.
Times are tough, everybody is in debt, and everybody
is living on credit.
A rich tourist drives through town, stops at the
motel, and lays a $100
bill on the desk saying he wants to inspect the rooms
upstairs to pick one for the night.

As soon as he walks upstairs, the owner
grabs the bill and runs
next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the
street to retire
his debt to the pig farmer.

The pig farmer takes the $100 and heads off
to pay his bill to
his supplier, the Farmer’s Co-op.

The guy at the Farmer’s Co-op takes the
$100 and runs to pay his
debt to the local prostitute, who has also been
facing hard times and has
had to offer her “services” on credit.

The hooker rushes to the hotel and pays off
her room bill with the hotel owner.

The hotel proprietor then places the $100
back on the counter so
the rich traveler will not suspect anything.

At that moment the traveler comes down the
stairs, states that
the rooms are not satisfactory, picks up the $100
bill and leaves town.

No one produced anything. No one earned
anything. However, the
whole town is now out of debt and now looks to the
future with a lot more optimism.

And this, ladies
and gentlemen, is how the United States
Government is
conducting business today.

These affordable metro areas offer sunny weather, plenty of seniors and rosy economic outlooks.

Below are the top ten cities.  Go to Forbes.com to see the rest of the list.

Up to 26% of U.S. homeowners who stop paying their mortgage may be doing so intentionally, not because they can’t make the payments but because they don’t want to put money into a house that’s worth less than what they owe.

Read more via Mortgage Defaults: Many Are Intentional, Study Finds – TIME.

I wonder if there are any elected officials in North East Tennessee communicating with Nashville about economic development for the local area?

Tennessee to Build on Success in Healthcare, Investment

NASHVILLE, Tenn. — Tennessee Governor Phil Bredesen and Economic and Community Development Commissioner Matt Kisber today announced plans to attend the 2009 SEUS/Japan Annual Meeting in Tokyo October 17-19, followed by a nine day trade mission to China. During his trip, Governor Bredesen will meet with Japanese companies currently invested in Tennessee and will hold talks in the Chinese cities of Beijing, Xian, Hangzhou and Hong Kong. The visit comes following action by the Tennessee General Assembly to approve House Joint Resolution 191 calling for closer economic, educational and cultural ties between Tennessee and Hubei province, home to the famous Three Gorges Dam and provincial capital, Hangzhou.

“Last year, we launched a very successful beginning to the economic and cultural relationship between China and Tennessee by opening the Tennessee-China Development Center in Beijing,” said Governor Bredesen. “Despite the global economic slowdown, Tennessee’s trade relationship with China continues to grow and we see real potential for that trade relationship to increase its momentum.”

In 2008, Chinese customers purchased $1.3 billion dollars worth of goods and services from Tennessee companies, making China the state’s third largest trading partner behind Canada and Mexico. Japan is Tennessee’s fourth largest trading partner, purchasing $1.07 billion dollars in Tennessee goods and services.

“We continue to have strong interest in Tennessee from China,” said Commissioner Kisber. “As the Chinese economy, especially its consumer markets, continues to expand, we want Tennessee companies to benefit and our mission is designed to raise awareness of Tennessee products.”

One of China’s primary interests is Tennessee’s expertise in the delivery of health care and in health-related products and training. In October 2008, Commissioner Kisber signed a memorandum of understanding along with Dr. Zhu Baoduo of the Chinese Foreign Loan Office to establish regular exchanges of health care professionals focused on discussing ideas around rural health care delivery. The inaugural China-Tennessee Rural Health Exchange began in May 2008 when 43 Chinese health experts visited the University of Memphis, East Tennessee State University and the Vanderbilt Institute for Better Health.

On June 8, 2009, experts from the three Tennessee universities travelled to Xian to participate in a conference on rural health with more than 100 Chinese medical professionals as a follow-up to last year’s exchange. The exchange is funded through a grant from the World Bank and the British Department for International Development.

The Tennessee Department of Economic and Community Development has begun accepting applications for participation in the trade mission. The Japanese portion of the trade mission will be October 18 and 19 in Tokyo and is being managed by the Japan-America Society of Tennessee and the Chinese portion of the trade mission will run October 21 through October 29 and is being managed by ECD. The mission delegation is expected to be limited to approximately 40-50 participants with a participation fee of $5,000 per delegate ($1,500 for spouses). That fee includes participation in all trade mission events and domestic flights, but does not include international travel and hotels. Representatives of companies and communities interested in participating in the trade mission can learn more and apply online at www.tnecd.gov

Questions about the trade mission can be sent to [email protected]

Read more via Governor Bredesen, Commissioner Kisber to Lead Trade Mission | TN.gov Newsroom.

NASHVILLE – The decline in state tax collections continued for a tenth consecutive month in May, as overall May revenues were $716.5 million, or $123.3 million less than the state budgeted.  May also marks the fifteenth month of negative growth for sales tax collections in the past 17 months.

“As the state’s revenue collections continue to deteriorate, we have to rely on a combination of reserves and reducing recurring expenses to help stabilize the budget,” Finance & Administration Commissioner Dave Goetz said.  “We’ve worked hard for the past six years to build our reserves and manage spending, and that will continue to be critically important in managing next year’s budget, as economists agree that recovery may not be quick.” Continue reading “May, 2009 revenues decline in Tennessee” »