State sees 10 months of double-digit growth

Oklahoma’s total revenue collections grew by double digits for the 10th straight month, Treasurer Ken Miller reported Thursday.

The figures indicate Oklahoma’s economy continues to grow after years of economic pressure that led to consecutive budget shortfalls and major cutbacks in state appropriations and services.

The treasury collected $1.2 billion last month, the highest amount ever collected in September. Total collections over the past 12 months topped $12.5 billion — another record amount.

“Oklahoma’s economy continues to climb the expansion side of the business cycle,” Miller said. “As we saw last week with the ratings outlook upgrade from negative to stable by Moody’s Investors Service, the state’s economic and policy improvements are being noticed well beyond our borders.”

Moody’s affirmed the state’s Aa2 bond rating, but revised the state’s outlook from negative to stable. While a negative outlook connotes downward pressure and the possibility of a downgrade, as table outlook highlights the agency’ s belief that the rating will remain unchanged for the next year or two. Aa2 is Moody’s third-highest rating, and issuers with this rating are judged to be of high quality and are subject to very low credit risk.

One reason for revising the bond rating is Oklahoma’s continued economic improvement and revenue growth.

Miller noted September brought higher collections in every major revenue stream compared to the same month last year, ranging from 110 percent boost in gross production taxes to a slight increase in motor vehicle tax revenue.

Corporate and personal income taxes rose by 11.4 percent last month. Sales tax collections grew by 6.6 percent compared to a year ago, Miller said.

The higher tax rates approved by lawmakers this year accounted for slightly more than 4 percent, or $48.7 million, of all revenue collected in September.

The biggest share, $31.2 million, came from the tax hike on production of oil and natural gas. Raising the tax on gasoline and diesel fuel purchase generated $8.3 million, and the $1 per pack increase on cigarettes added $9.3 million to state coffers.