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Knoxville — State revenue collections were approximately $31 million below estimates for June.

But a University of Tennessee economist said revenue collections rose from the previous year.

“We had a very good year-over-year increase in revenue collections,” said Dr. Matt Murray, “but that was growth we had anticipated coming from corporate franchise and excise taxes.”

“The real disappointing news is that the sales tax did not perform well for the month of June,” Murray said.

Sales tax revenue collections were $25 million below the estimates, and Murray said that’s a problem.

“It’s the sales tax that’s the bread and butter for state finances,” Murray said, “and if those revenues continue to underperform in the months to come, it’s going to compromise efforts to fund the state budget.”

Total revenue collections in June were $692 million, up 19 percent over last year but less than expected.