OKLAHOMA CITY — State officials continued to warn of a possible economic slowdown and lower-than-expected state revenue Wednesday as Treasurer Randy McDaniel reported a decline in gross production receipts from oil and gas.
“The sustained expansion of the state’s economy is noteworthy, but the recent volatility of energy prices illuminates the importance of proceeding with caution,” McDaniel said. “We have started to see the impact of lower prices on oil and gas tax collections. However, at least at this point, any substantial spillover effect on other major revenue sources has not materialized.”
Crude oil prices ended the day higher after domestic supply reports came in lower than expected. They have been erratic over the long term, though, and 15 percent to 20 percent lower in November, which is reflected in January receipts.
Still, gross production receipts were $39.3 million more in January than for the same month a year ago, in large part because of an increase in the tax rate on some wells.
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Overall, receipts to the treasury totaled $1.24 billion, or $101 million more than for the same month a year ago.
Receipts to the treasury include all taxes paid to the treasury, including those collected on behalf of local governments — chiefly sales and use taxes — and those returned to taxpayers as refunds and rebates.
Gross production taxes generally contribute less to state revenue than personal income and sales taxes and are viewed as a leading indicator of economic activity. Weak oil and gas prices usually affect all tax receipts eventually.
The state board of equalization is expected to certify a final general revenue projection Feb. 20. That figure is the amount of money available for appropriation in the fiscal year that begins July 1.
