Report: Arkansas revenues in August beat expectations, last year’s figures

Ark. revenues come in ahead of forecast, last year

LITTLE ROCK, Ark. — Arkansas’ revenues topped expectations and were above last year’s August figures, fueled by a spike in income and sales tax collections, state finance officials said Thursday.

The state’s net available revenues last month were $18 million more than forecast and $31 million more than in the same month last year, the Arkansas Department of Finance and Administration reported. The state saw an increase in sales and individual income tax collections, although corporate income taxes collections fell below forecast.

Richard Weiss, the department’s director, said the figures offered hope that the state’s economy was improving.

“We’re not declaring victory by any means, but we feel real optimistic,” Weiss told reporters.

Since Arkansas began its fiscal year July 1, the state’s net available revenues have totaled $743.1 million, which is $32.7 million above forecast. The revenue is $10.2 million below last year’s figures.

The revenue report comes as lawmakers are delaying recommendations on how much money schools should receive from the state. A legislative panel withdrew its recommendation to increase the funding by $69 million after Gov. Mike Beebe and lawmakers said more study was needed.

Beebe last year cut $247 million from the state’s budget.

Beebe said Thursday the latest report was good news, but cautioned against getting too excited by the figures.

“You have to look at cumulative stuff over several months, but it’s good that the first two months are up,” Beebe said.

Individual income tax collections totaled $188.9 million, which was $11.6 million above last year and $7.8 million above forecast. Sales tax collections came in at $187.9 million, which was $15 million above last year and $4.4 million above forecast.

Corporate income tax collections totaled $5.8 million. The collections were $800,000 below forecast, and department officials said August is historically a low month for that category.