OKLAHOMA CITY – Inflation is having a “dampening effect” on the Oklahoma economy, State Treasurer Randy McDaniel announced Monday.
Gross receipts to the Treasury in May totaled $1.3 billion. That constituted a 5% increase from a year ago but was the slowest rate of growth in 10 months, McDaniel said.
The current annual inflation rate is 8.3%. Energy prices are up 30.3% over last year, and food costs are up 9.4% – the largest increase in four decades, since April 1981.
“Oklahoma is holding its own in a challenging economic environment,” McDaniel said. “While unemployment remains low, equity returns have not recovered, and inflation is taking a toll on everyone.”
Consumption taxes – sales and use tax receipts – grew by 5.9% in May, less than the current rate of inflation. “When inflation outpaces revenue, buying power decreases,” the Treasurer noted. “Spending more to purchase the same things impacts all budgets, especially those of hardworking Oklahomans.”
Income tax collections dropped by almost 12%, but this outcome is related to last year’s delayed filing deadline which increased 2021 collections, McDaniel explained. Motor vehicle receipts are up by 5.5% from the prior year and gross production collections in May are up significantly.
Twelve-month collections of $16.48 billion are up by $2. 6 billion, or 18.8%, compared to the previous 12 months, with all four major revenue streams showing growth.
The monthly Oklahoma Business Conditions Index improved in May. The index for the month was set at 66.1, up from 65.8 in April. The outlook remains positive, as numbers above 50 indicate expected expansion during the next three to six months, McDaniel said.
Unemployment rate
still remains low
The Oklahoma unemployment rate in April was 2.7%, unchanged from March, the U.S. Bureau of Labor Statistics reported. The U.S. jobless rate was listed as 3.6% in April, also unchanged from March.
The Oklahoma Employment Security Commission announced that unemployment claims for the week ending May 21 declined across all reporting categories.
Unadjusted initial claims that week numbered 1,818, a decrease of 72 from the previous week. For the same file week, the four-week moving average, which smooths out volatility, was 1,914, a decrease of 28 from the previous week.
The number of continued claims totaled 10,189, a decrease of 1,077 from the previous week. The four-week moving average of continuing claims was 10,927, a decrease of 236 from the previous week.
“Oklahoma continues to stand out as a leader for economic strength and recovery, and we are proud to see claims decreases in every reporting category,” said OESC Executive Director Shelley Zumwalt. “Additionally, Oklahoma’s Unemployment Insurance Trust Fund has reached approximately $335M, further solidifying it as one of the most stable funds in the nation.”
12-month collections
Combined gross receipts for the past 12 months compared to the previous period show:
Ÿ Gross revenue totals $16.48 billion. That is $2.61 billion, or 18.8%, above collections from the previous period.
Ÿ Gross income taxes generated $5.94 billion, an increase of $920.6 million, or 18.3%. Individual income tax collections total $4.91 billion, up by $663.3 million, and corporate collections are $1.03 billion, an increase of $257.3 million.
Ÿ Combined sales and use taxes generated $6.54 billion, an increase of $774.2 million, or 13.4%. Gross sales tax receipts total $5.56 billion, up by $651.7 million, and use tax collections generated $976.6 million, an increase of $122.6 million.
Ÿ Oil and gas gross production tax collections generated $1.44 billion, up by $744.2 million, or 107.2%.
Ÿ Motor vehicle collections total $882 million, an increase of $70 million.
Ÿ Other collections, from approximately 60 different sources that include taxes on fuel, tobacco and alcoholic beverages, generated $1.68 billion, up by $98.2 million.
Ÿ Medical marijuana taxes generated $61.5 million, down 6.3%.