Treasurer predicts continued growth
By M. Scott Carter
American Staff Writer
OKLAHOMA CITY -- For the second year in a row, the state's Rainy Day Fund will be funded to its maximum capacity, state Treasurer Scott Meacham said Tuesday.
Meacham, D-Oklahoma City, said the reserve fund will receive a deposit of $34.4 million. "This deposit brings us to our maximum allowable level -- 10 percent of the previous year's certified General Revenue Fund collections."
Once the deposit is made, he said, the fund will have $495.7 million.
Meacham said the revenue increase is due to a growing economy and ever-increasing energy prices. Preliminary reports show General Revenue Fund collections for FY 2006 at $5.7 billion. That amount, Meacham said, is about $554.8 million over last year's certified revenue estimate of $5.149 billion. "Oklahoma's economy is producing record revenues for the state," he said.
Meacham said the state's growth was reflected in "every major tax category," including:
Income taxes -- net income taxes, (a combination of individual and corporate income tax), which brought in $2.65 billion -- $332.6 million more than last year.
Sales taxes -- driven by retail sales, sales taxes produced $1.46 billion -- $114.5 million more than last year.
Oil and gas gross production taxes generated $729.7 million, or $234.5 million more than last year.
Motor vehicle taxes -- based on motor vehicle license sales, these taxes produced $233.6 million or $13.9 million than last year.
While the economy and the petroleum industry have added much to the state's bottom line, Meacham's office, itself, has also contributed to that extra revenue. Records show the Treasurer's investments generated almost $100 million extra for the state's budget. Meacham said he was pleased by the report.
"It's pretty amazing," he said, "when you compare this revenue against that of 2003 when Governor Henry and I first came here."
But even though he's pleased with the increase in tax revenue, Meacham said he didn't expect that "same type of growth" to continue.
"Honestly, I don't expect to see that type of rapid growth over the next three years," he said. "Our income tax grew at 14 percent; our sales tax 8 percent. I don't think those type of numbers will continue. I believe we'll see growth at the 5 or 6 percent level -- a 'normal' Oklahoma economy."
And while Oklahoma won't have the "same record setting" year next year, Meacham said the Sooner State economy will continue to expand. "Our growth will continue," he said. "Hopefully I'll be surprised and it will do better than I think it will."
