Providence, RI— Governor Lincoln D. Chafee and Rosemary Booth Gallogly, Director of the Rhode Island Department of Revenue, today released the FY 2014 Special Report on Preliminary Revenues. This report provides a detailed look at FY 2014 preliminary revenues as provided in the Controller's Preliminary General Fund Revenue Report for FY 2014 and compares these revenues to both the final enacted FY 2014 revenue estimates and the audited FY 2013 revenues as provided in the Final General Fund Revenue Report for FY 2013. Some of the information is derived from reports generated by the Division of Taxation and the Division of Lottery. This report should be viewed as a complement to the Controller's Preliminary General Fund Revenue Report for FY 2014.
The FY 2014 Special Report on Preliminary Revenues shows that preliminary FY 2014 total general revenues exceeded the final enacted FY 2014 revenue estimates by $20.3 million or 0.6 percent. Preliminary FY 2014 total taxes and departmental receipts revenues finished ahead of the final enacted FY 2014 total taxes and departmental receipts revenues by $25.9 million or 0.9 percent. The largest portion of this difference is attributable to total taxes which were $24.7 million or 0.9 percent, more in preliminary FY 2014 revenues than the final enacted FY 2014 revenue estimates. Preliminary FY 2014 other general revenue sources were $5.6 million below final enacted FY 2014 revenue estimates of other general revenue sources or 1.4 percent.
"I am proud that since FY 2011, Rhode Island's general revenues have increased by more than $350 million. Additionally, with the release of FY 2014 preliminary revenues, Rhode Island's total revenues have surpassed the peak reached in FY 2008 prior to the great recession," Governor Chafee said. "Through sound fiscal management, my administration has worked diligently to act as a responsible steward of the State's resources. Good revenue returns show that our focus on education, infrastructure and workforce development is building a good Rhode Island economy."
Director of Revenue Rosemary Booth Gallogly noted that "the principals of the May 2014 Revenue Estimating Conference were very close in projecting FY 2014 revenues, missing the estimate for total general revenues by less than 1.0 percent on a $3.4 billion base." For the major revenue sources, the variances are approximately ± 1.0 percent with preliminary FY 2014 personal income tax and sales and use tax revenues above their enacted levels and the preliminary FY 2014 lottery transfer revenues below its enacted amount.
The FY 2014 Special Report on Preliminary Revenues shows that preliminary FY 2014 total general revenues exceeded audited FY 2013 revenues by $112.3 million or 3.4 percent. Preliminary FY 2014 total taxes and departmental receipts revenues were $106.5 million or 3.6 percent more than audited FY 2013 total taxes and departmental receipts revenues. Total taxes revenues were $103.0 million or 4.0 percent, more in preliminary FY 2014 than in audited FY 2013. Preliminary FY 2014 other general revenue sources were $5.8 million above audited FY 2013 other general revenue sources or 1.5 percent.
Director Gallogly noted that preliminary FY 2014 total general revenues of $3.436 billion surpassed the previous peak of $3.429 billion attained in FY 2008. Gallogly stated, "It took five fiscal years to fully recover revenue-wise from the impact of the Great Recession but we are finally there." FY 2014 preliminary total general revenues grew by over $110 million from FY 2013 audited total general revenues. Gallogly noted that this is "a remarkable amount when you consider the fact that FY 2013 audited general revenues include $22.3 million in non-recurring revenues from the 2012 Tax Amnesty in the total." Growth in FY 2014 preliminary revenues over FY 2013 audited revenues was solid for the personal income tax and robust for the sales and use tax. The FY 2014 preliminary lottery transfer revenues were down relative to their audited FY 2013 level, an unexpected outcome given the expectation that the onset of table gaming at Twin River was going to increase video lottery net terminal income at the facility. The decline in video lottery net terminal income at both Twin River and Newport Grand was, however, consistent with the weakening of gaming revenues across the region as a whole.
The entire report can be found on the Department of Revenue's web site, www.dor.ri,gov, under the State Revenue Briefs directory or at the link below.
Questions or comments on the report should be directed to Paul L. Dion, Chief of the Office of Revenue Analysis by e-mail at paul.dion@revenue.ri.gov or by phone at (401) 574-8999.