State Revenue Growth a “Pleasant Surprise,” Expected to Slow

The last few months have been good for state tax revenues, but Tennessee’s finance commissioner isn’t sure why. Economists are doubting the state will bring in tax dollars so fast in 2012.

Finance Commissioner Mark Emkes says lately Tennessee’s tax coffers have done unexpectedly well. Since summer Emkes says they’ve brought in more money than the state budgeted.

“When you hear about all the things going on in Europe and the world economy – which is fragile right now – and to see this type of growth in Tennessee, especially on the sales-tax revenue of over 6 percent year-to-date… that’s been a surprise.”

Emkes says he’s not entirely sure what’s driven the surge. For one thing, he says some people may finally be buying things they were putting off. For another, Emkes says folks aren’t saving as much of their paycheck, meaning they’re spending more.

Whatever the cause, economists are telling the state funding board that growth won’t stop next year, but it will likely slow down.