OKLAHOMA STATE TREASURER
For Immediate Release: February 2, 2012
Oklahoma Economy Expands, But . . .
OKLAHOMA CITY – Oklahoma’s economy showed growth for a 23rd consecutive
month in January as all but one revenue stream improved over the same month of the prior year,
State Treasurer Ken Miller said today as he released the state’s monthly gross receipts report.
“Unfortunately, the one source of revenue on the decline – the gross production tax – is a
key driver of Oklahoma’s economy and could moderate growth going forward until natural gas
supply is reduced and prices rebound,” Miller said.
January receipts from all sources grew by 8.5 percent from the prior year and collections
for the past 12 months are up by 9.6 percent. Gross production collections in January fell by 7.4
percent from the prior year.
“Collections from the past 12 months are almost $1.4 billion higher than when we hit
bottom in February 2010. We have recovered 73 percent of the revenue lost from the peak of the
expansion cycle in December 2008,” he said.
Miller said low natural gas prices follow simple supply-and-demand principles.
“The reduction in gross production tax collections follows a trend from the past few
months caused primarily by record supply. The warmest winter in some 100 years is
exacerbating the supply glut and as demand drops so do prices,” Miller said. “Most forecasts
show prices will remain low for quite some time.”
Miller said he anticipates natural gas prices will impact revenue estimates when the State
Board of Equalization meets later this month.
“The December estimate was based on gas at $4 per thousand cubic feet,” he said.
“Prices are in the $2.50 range this week with little improvement anticipated in 2013.”
Miller said January’s economic growth comes primarily from income tax and sales tax
“We see the impact from the last part of the Christmas shopping season with sales tax
collections more than 10 percent higher than last January,” he said. Miller explained that January
sales tax remittances represent taxable purchases made between mid-December and mid-January.