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Town not likely to see big cash trickle from surplus sales tax collections: Olson


Even though the state of Tennessee collected $12.8 million more sales tax than initially estimated for the month of June, the surplus probably doesn’t mean that much for the town of Farragut.

“It could trickle down but we wouldn’t see it for some time,” said town administrator Dan Olson.


And while $12.8 million sounds like a lot of money — when it comes to municipal budgets — “from a percentage point, it’s probably not that much,” Olson said.

Olson uses tax estimates to help keep Farragut’s budget on track. He also calculates his own estimates by studying last year’s numbers. He studies and compares expenditures and revenues monthly, using complex calculations throughout the process.

“I spend a lot of time so we are as accurate as we can be … estimates are real critical,” he said, adding it is important to remember: “One month doesn’t make a whole fiscal year.”

Budgeted revenue estimates are based upon the State Funding Board’s consensus recommendation adopted by the second session of the 103rd General Assembly in May 2004. The revenue estimates were revised last month when the General Assembly enacted the 2005-06 budget.

The revised estimates compared with the budgeted estimates assume a $24.3 million shortfall in sales tax collections.

 

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