(The Center Square) - Oklahoma's June gross receipts report surprised state officials with a 42.7% decrease in oil and gas revenue compared to June 2022.
The drop in oil and gas revenues led to an overall decline of 2.5%, or $38.1 million in gross revenues, when compared to June of last year, according to the report from Treasurer Todd Russ.
"Fortunately, our economy's diversified and we aren't quite as dependent as we used to be on oil and gas, but that's still a significant swing, and it's actually drug down some of the other indexes as far as the revenue placements," Russ said in an interview with The Center Square. "I honestly haven't really talked to any energy people to know why it's like that other than maybe a reflection of the pricing."
Other collections increased year-over-year, according to the monthly report. Sales and use tax collections are up by $27.7 million, a 4.8% increase. Gross income tax collections are up by $17.4 million, or 3.2%. Corporate tax collections are 3.8% higher than last year.
The state's unemployment rate fell slightly in May to 2.8%. The national unemployment rate is 3.7%.
And while regional trends are showing some economic uncertainty, Oklahoma fared better than others in the Creighton University Mid-America Businesses Conditions for June. The nine-state region's index decreased to 50.8 from 51.3. Oklahoma grew to 45.5 from 44.7. The state is still below a growth neutral score of 50, according to the report.
Russ said despite the oil and gas revenue decline, the state is in good shape.
"I think on a national average, Oklahoma's out in front and probably outperforming most of our peers," Russ said. "Actually, some parts of that from the unemployment standpoint and some of those, we're faring better than most and I certainly think we're in a really good climate. We've got a great savings account for the state. We've got a lot of money. The Legislature just finished the budget last month, and we're set really well for being able to ride out some tough times if we had them."
via Oklahoma's Center Square News