October Treasury Receipts Show Continued Economic Growth in Oklahoma

Story provided by Oklahoma Treasurer’s Office

Oklahoma Gross Receipts to the Treasury indicate the state economy continues to expand as the monthly report shows growth of more than 16 percent in October, State Treasurer Ken Miller announced Friday.

Monthly gross receipts, at $1.1 billion, and total 12-month gross receipts, at $12.7 billion, are the highest on record for October and any 12-month period.

“Oklahoma’s economy is showing signs of ongoing expansion as reflected in Gross Receipts to the Treasury and other economic indicators,” Treasurer Miller said. “Work force data is most encouraging with unemployment listed at 3.5 percent and oil field employment set at 55,600 – up by 12,800 from two years ago.”

Individual income tax collections reflect the strong employment picture with receipts showing growth of more than 9 percent over the past 12 months. Sales tax receipts have grown by almost 10 percent during the same time period.

The gross production tax on crude oil and natural gas has grown the most, though changes in tax rates are boosting the numbers. Gross production receipts for the past 12 months are up by more than 70 percent, while October receipts are almost double those of the same month last year.

All major revenue streams for October and the past 12 months show growth.

New Tax Revenue

Revenue generated by increased tax rates approved in House Bill 1010XX earlier this year added $55.3 million to monthly collections, 4.9 percent of October gross receipts.

The largest share, $30.8 million, came from the increase from 2 percent to 5 percent in the incentive tax rate on oil and natural gas gross production. Higher tax rates on gasoline and diesel fuel generated $11.3 million, and the $1 per pack hike in cigarette taxes added $13.2 million to October’s total.

Other indicators

The Oklahoma Business Conditions Index has topped growth neutral for 15 consecutive months. The October index was set at 55.0, down from 57.6 in September. Numbers above 50 indicate anticipated economic growth during the next three to six months.

Oklahoma’s seasonally adjusted unemployment rate of 3.5 percent in September is down by two-tenths of a percentage point from August. The U.S. jobless rate of 3.7 percent is down by the same percentage from the prior month, according to figures released by the Oklahoma Employment Security Commission.

October collections

October gross collections total $1.1 billion, up $158.3 million, or 16.1 percent, from October 2017.

Gross income tax collections, a combination of individual and corporate income taxes, generated $369.5 million, an increase of $46.2 million, or 14.3 percent, from the previous October.

Individual income tax collections for the month are $352 million, up by $43 million, or 13.9 percent, from the prior year. Corporate collections are $17.5 million, an increase of $3.2 million, or 22.6 percent.

Sales tax collections, including remittances on behalf of cities and counties, total $402.6 million in October. That is $18.4 million, or 4.8 percent, more than October 2017.

Gross production taxes on oil and natural gas generated $102.1 million in October, an increase of $50 million, or 96.2 percent, from last October. Compared to September reports, gross production remittances are down by $3.3 million, or 3.1 percent.

Motor vehicle taxes produced $66 million, up by $2.1 million, or 3.2 percent, from the same month of 2017.

Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $198.4 million during the month. That is $41.6 million, or 26.5 percent, more than last October.

Twelve-month collections

Gross revenue totals $12.7 billion from the past 12 months. That is $1.4 billion, or 12.9 percent, more than collections from the previous 12 months.

Gross income taxes generated $4.4 billion for the period, reflecting an increase of $427.5 million, or 10.8 percent, from the prior 12 months.

Individual income tax collections total $3.9 billion, up by $327.6 million, or 9.2 percent, from the prior 12 months. Corporate collections are $497.6 million for the period, an increase of $100 million, or 25.1 percent, over the previous period.

Sales taxes for the 12 months generated $4.8 billion, an increase of $433 million, or 9.9 percent, from the prior period.

Oil and gas gross production tax collections brought in $860.2 million during the 12 months, up by $358.4 million, or 71.4 percent, from the previous period.

Motor vehicle collections total $776.7 million for the period. This is an increase of $14.7 million, or 1.9 percent, from the trailing period.

Other sources generated $1.9 billion, up by $214 million, or 12.9 percent, from the previous 12 months.

About Gross Receipts to the Treasury

The Office of the State Treasurer has issued the monthly Gross Receipts to the Treasury report since March 2011 to provide a timely and broad view of the state’s macro economy.

It is released in conjunction with the General Revenue Fund allocation report from the Office of Management and Enterprise Services, which provides important information to state agencies for budgetary planning purposes.

The General Revenue Fund receives less than half of the state’s gross receipts with the remainder paid in rebates and refunds, remitted to cities and counties, and placed into off-the-top earmarks to other state funds.

Source article: http://mccarvillereport.com/?p=49086

Governor Mary Fallin Helps Kratos Defense & Security Solutions Cut Ribbon on its New 100,000-Square-Foot Unmanned Aircraft Production Facility in Oklahoma City

Governor Mary Fallin welcomes Kratos Defense & Security Solutions, Inc., during a ribbon-cutting ceremony for the company’s new 100,000-square-foot unmanned aircraft production facility in the Will Rogers Business Park in Oklahoma City

OKLAHOMA CITY – Governor Mary Fallin today joined state and community leaders and executives from Kratos Defense & Security Solutions, Inc., at a ribbon cutting for the company’s new 100,000-square-foot unmanned aircraft production facility in the Will Rogers Business Park.

Kratos is a leading provider of high performance, jet powered unmanned aerial drone systems (UAS) for tactical and target threat representation purposes.

“We are excited to have Kratos start operations here in Oklahoma City,” said Fallin. “The company is an excellent addition to our state’s prominent aerospace industry, and will help this industry continue to advance. During my time as governor, we have worked to bring quality companies like Kratos to Oklahoma, adding new job opportunities for Oklahomans and continuing to diversify our economy. I would like to thank Kratos for choosing Oklahoma and bringing exciting job opportunities to Oklahomans.”

Kratos is opening the new facility to accommodate existing and expected increased demand for its newest line of high performance, jet powered unmanned aerial tactical and target drone systems.  Kratos has selected Oklahoma City to be the production facility home for its Tactical UAS and Firejet (MQM-178) unmanned aerial target system, and  plans to hire at least 350 employees in Oklahoma over the next five years to fill the high-skilled engineering, design, and manufacturing functions that will be needed to support the production contracts for these aircraft.

Kratos is the recognized industry leader in high-performance, low-cost jet aerial target systems that support the U.S. military and foreign ally military customers/users, with its primary customers including the United States Air Force, Navy, and Army.  In addition, Kratos is currently under contract on multiple high performance jet-powered tactical unmanned aerial drone systems.  Kratos is an industry leader in the rapid development, demonstration, and fielding of technology leading systems and products for National Security at an affordable cost.

“Kratos chose Oklahoma, with strong encouragement from its Congressional Delegation,” said Eric DeMarco, president and chief executive officer of Kratos Defense & Security Solutions. “The people of Oklahoma represent a highly patriotic, educated, and motivated workforce with the technical skills that will contribute to building the affordable but technology leading weapon systems needed for tomorrow’s world. We could not be happier to be joining this cost-effective business environment and family-friendly community.”

“Kratos—welcome to Oklahoma,” said U.S. Sen. Jim Inhofe. “As a community with a highly skilled workforce and a visceral commitment to the men and women in uniform, I am confident that you could not have chosen a better location to expand as you continue to be a pioneer in drone technology for our military. I look forward to seeing how this facility will benefit our economy and our armed forces now and in the future.”

“Kratos is a company that’s always innovating and producing cutting-edge technology for our military,” said U.S. Rep. Steve Russell. “Their vision and expertise in unmanned aerial systems will allow our warriors to have the most effective tools they need to keep our country safe. I am glad Kratos recognizes the value of Oklahoma and the Fifth District. We are fortunate and honored to be the site of their latest expansion, which will undoubtedly have a significant and positive impact on helping our military protect our national security.”

Steve Fendley, president of Kratos Unmanned Systems Division, said: “We have been fortunate to be on a substantial growth trajectory with respect to our legacy unmanned aerial targets business and also now in our Tactical/Strike UAS business.  This Oklahoma expansion accommodates our existing need to augment our California production capacity based on backlog orders today; but more importantly enables us to meet our expected increasing production quantity and aircraft type requirements which are expected to ramp significantly each year for the foreseeable future.  Our range of unmanned jet aircraft now range from about 10 feet to 30 feet in length with wingspans up to about 27 feet.  Our facility selection and production layout will facilitate multiple simultaneous production lines building each of our different aircraft models, and it enables us to readily vary the production rate between models in the same facility.  Oklahoma, and specifically Oklahoma City with its proximity to Tinker Air Force Base and other aerospace primes and suppliers is the ideal home for our expanding UAS production and development work.”

The Oklahoma facility is the latest in a series of expansions announced by Kratos in recent months, including significantly expanded facilities in Colorado Springs, Colorado, for its space communications products, and doubling of its manufacturing capacity for training and simulation systems in Orlando, Florida. This is in addition to opening offices in several cities outside the U.S. to capitalize on increasing global demand for the company’s advanced technologies, including in Saudi Arabia, Australia and Singapore.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc., develops and fields transformative, affordable technology, platforms and systems for United States national security-related customers, allies and commercial enterprises.  Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. Kratos specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems. For more information go to www.KratosDefense.com.

Governor Mary Fallin reads from a plaque she presented Friday to Eric DeMarco, president and chief executive officer of Kratos Defense & Security Solutions, Inc., during a ribbon-cutting ceremony at the company’s new 100,000-square-foot unmanned aircraft production facility in the Will Rogers Business Park in Oklahoma City.

A Kratos Mako Tactical unmanned aerial drone system is shown during a rocket assist take-off launch. The aircraft will be produced by Kratos Defense & Security Solutions, Inc., at its new production facility in Oklahoma City.

A Kratos Firejet unmanned aerial drone system is shown on its pneumatic launcher. The aircraft will be produced by Kratos Defense & Security Solutions, Inc., at its new production facility in Oklahoma City.

Michael McNutt, Communications Director