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Tenn. Revenue Collections Up in March
Tennessee revenue collections continued to exceed budgeted expectations in March. Finance and Administration Commissioner Mark Emkes reported today that overall March revenues were $936.1 million, which is $33.1 million more than the state budgeted. Total tax collections in March were 2.2% above the previous year.
“March collections continued to reflect strong corporate profits from last year, but also reflect very modest retail activity for the month of February, when spending occurred,” Emkes said. “We believe the slowdown in retail spending reflects the two percent increase in the federal payroll tax in January and temporary erosion in consumer confidence, most likely brought about by the federal budget sequestration process.
“While year-to-date corporate tax collections remain very encouraging, we must remember that about a fourth of them typically – but not always - occur in the month of April. Due to the volatility of our corporate tax collections, we will be extremely diligent in monitoring our spending patterns for the remainder of this year, maintaining a balanced budget and financially posturing ourselves for the future.”
On an accrual basis, March is the eighth month in the 2012-2013 fiscal year.
The general fund was over collected by $35.4 million and the four other funds were under collected by $2.3 million.
Sales tax collections were $2.8 million less than the estimate for March. The March growth rate was positive 0.11%. For eight months revenues are under collected by $33.1 million. The year-to-date growth rate for eight months was positive 1.77%.
Franchise and excise taxes combined were $42.7 million above the budgeted estimate of $168.8 million. For eight months revenues are over collected by $156.5 million. The year-to-date growth rate for eight months was positive 9.12%.
Gasoline and motor fuel collections for March increased by 0.75% and were $0.2 million above the budgeted estimate. For eight months revenues are under collected by $15.2 million.
Tobacco taxes collections were $5.9 million under the budgeted estimate of $24.7 million. For eight months revenues are under collected in the amount of $10.7 million.
Inheritance and estate taxes were over collected by $2.2 million for the month. Year to date collections for eight months are $12.8 million more than the budgeted estimate.
Privilege tax collections were $2.2 million more than the March estimate, and on a year to date basis, August through March, collections are $17.8 million above the estimate.
All other taxes were under collected by a net of $5.5 million.
Year-to-date collections for eight months were $127.1 million more than the budgeted estimate. The general fund was over collected by $141.6 million and the four other funds were under collected by $14.5 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.
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Last Update on August 28, 2014 07:37 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- Labor Department releases weekly jobless claims, 8:30 a.m.
WASHINGTON -- Commerce Department releases second-quarter gross domestic product, 8:30 a.m.
WASHINGTON -- Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.
WASHINGTON -- The Federal Deposit Insurance Corp. releases U.S. bank earnings for the second quarter, 10 a.m.
WASHINGTON -- National Association of Realtors releases pending home sales index for July, 10 a.m.
AMERICANS' ECONOMIC SURVEY
WASHINGTON (AP) -- Despite many signs of a business recovery including improved hiring, Americans are more worried about the economy than they were right after the Great Recession.
A survey released by researchers at Rutgers University says that this pessimism exists despite record Wall Street gains and a host of upbeat economic indicators.
Seventy-one percent of Americans surveyed say the recession put a permanent drag on the economy. In contrast, Rutgers researchers found in a similar survey in November 2009 that only 49 percent thought the downturn would have lasting damage. That earlier 2009 survey was conducted five months after the recession officially ended.
And when the 2009 survey was undertaken, national joblessness was at 9.9 percent of the labor force, compared to the current 6.2 percent.
The survey says people's confidence in the economy has been eroded by the slow pace of improvement during the
TEWKSBURY, Mass. (AP) -- A New England supermarket chain that has been in turmoil for weeks over a workers' revolt and customer boycott has announced that the former CEO will buy a majority stake in the business.
In a statement issued late Wednesday, Market Basket said popular CEO Arthur T. Demoulas (deh-MOO'-lahs) would be returning and taking over day-to-day operations. He was ousted in June by a board of directors controlled by his cousin, Arthur S. Demoulas. Hundreds of warehouse workers and drivers refused to deliver food to the chain's stores, leading to empty shelves and millions in lost revenue.
Market Basket, known for its low prices, has 71 stores in Massachusetts, New Hampshire and Maine.
NEW YORK (AP) -- The FBI is investigating a hacking attack on JPMorgan Chase and at least one other bank. That's according to reports citing unnamed sources familiar with the matter.
A report on Bloomberg.com says the FBI is investigating an incident in which Russian hackers attacked the U.S financial system earlier this month in possible retaliation against U.S. government-sponsored sanctions aimed at Russia.
The attack, Bloomberg says, led to the loss of sensitive data. Bloomberg cites security experts saying that the attack appeared "far beyond the capability of ordinary criminal hackers."
The New York Times, also citing people familiar with the matter, says JP Morgan and at least four other firms were hit this month by what it describes as coordinated attacks that siphoned off huge amounts of data, including checking and savings account information.
The Wall Street Journal also cites unnamed sources in a less detailed report that calls the attacks a "significant breach of corporate computer security."
LOS ANGELES (AP) -- Negotiators hoping to reach a new contract that would keep hundreds of billions of dollars of cargo moving smoothly through West Coast seaports are making significant progress with a tentative deal on health care benefits.
The knotty issue had tied up the talks for months. Specific details weren't released.
The union representing dockworkers insisted benefits be maintained, while the Pacific Maritime Association said the current plan was so generous it had become the target for tens of millions of dollars in fraudulent charges.
The association had focused on limiting fraud while dockworkers complained that emphasis had blocked the payment of legitimate claims.
An overall contract deal still hinges on unresolved issues including job security and workplace safety.
The contract covers workers at 29 ports which are key trade links to Asia.
TYSON FOODS-HILLSHIRE-JUSTICE DEPARTMENT
NEW YORK (AP) -- Tyson Foods will sell its sow purchasing business, Heinold Hog Markets, in order to get regulatory clearance for its $7.75 billion purchase of Hillshire Brands.
The U.S. Department of Justice said Wednesday that Tyson Foods must sell the business in order to preserve competition for farmers who sell sows, or female pigs. The agency said Tyson and Hillshire combine to make more than a third of the sow purchases in the U.S.
Tyson Foods Inc. and Hillshire Brands Co. said they agreed with the department's proposal.
The department says Heinold buys sows from farmers and sells them to sausage makers. It had $270 million in revenue in 2013. That's less than 1 percent of Tyson's total revenue. Hillshire makes the pigs into Jimmy Dean and Hillshire Farm brand foods
Tyson agreed to buy Hillshire in June for $63 per share.
SEC CRISIS RULES
WASHINGTON (AP) -- Federal regulators have voted to require financial firms that sell securities backed by loans, like the kind that fueled the 2008 financial crisis, to give investors details on borrowers' credit records and income.
The Securities and Exchange Commission adopted the rules on a 5-0 vote Wednesday and the regulations cover securities linked to mortgages and auto loans.
The commissioners also imposed new conflict-of-interest rules on the agencies that rate the debt of companies, governments and issues of securities. That vote split 3-2 along party lines, with the two Republican commissioners opposing adoption of the rules.
Home mortgages bundled into securities and sold on Wall Street soured after the housing bubble burst in 2007, losing billions in value. The vast sales of risky securities ignited the crisis that plunged the economy into the deepest recession since the Great Depression and brought a taxpayer bailout of banks.
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