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State Economy Making Strong Showing: Oklahoma's Treasurer Predicts 'a Sizable Surplus Above the 'Rainy Day' Fund Cap This Year.'

Posted on: Friday, 17 February 2006, 12:00 CST

By Barbara Hoberock, Tulsa World, Okla.

Feb. 17--OKLAHOMA CITY -- Oklahoma's general revenue collections for January surpassed the previous January and the official estimate, indicating a strong economy, state Treasurer Scott Meacham said. Preliminary reports showed that the month's collections were $568.5 million -- $79.5 million, or 16.3 percent, above the same month last year. They also were $58.2 million, or 11.4 percent, above the estimate. The revenue figures show that the state's economy is "strong and getting stronger," Meacham said Tuesday. "We continue to see growth in all sectors, but especially in income-tax and sales-tax collections," he said. "January sales-tax collections, which include the second half of the Christmas shopping season, were very strong. That confirms reports that much of the holiday shopping occurred in the last few days before Christmas." The state sales tax generated $133.9 million for the month -- $10.1 million, or 8.1 percent, above the previous year and $6 million, or 4.7 percent, above the estimate. Meacham pointed out that the state brought in more income-tax revenue despite a Jan. 1 reduction in the rate from 6.65 percent to 6.25 percent. "That just shows how the economy grew even more than the impact of the cut," he said. The continued strength of revenue collections points toward another year of surplus funds, Meacham said. "We are confident there will be a sizable surplus above the 'rainy day' fund cap this year," he said. Income taxes produced $292.7 million -- $31.4 million, or 12 percent, above the previous year and $42.3 million, or 16.9 percent, above the estimate. Among other revenue sources, the gross-production tax on natural gas yielded $72.4 million -- $37.4 million, or 107.2 percent, above last year and $10 million, or 16.1 percent, above the estimate. Motor-vehicle taxes generated $21.2 million -- $600,000, or 3.1 percent, above the previous year and $1 million, or 4.8 percent, above the estimate. Other revenue produced $48.4 million -- the same as the previous year and $1.1 million, or 2.3 percent, below the estimate. ------------ Barbara Hoberock (405) 528-2465 barbara.hoberock@tulsaworld.com

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Copyright (c) 2006, Tulsa World, Okla.

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Source: Tulsa World

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