Arkansas Revenue Officials Say Budget Should Be ‘Fully Funded’

With one month to go before its fiscal year closes, Arkansas’ revenue picture may land right where it is projected to.

A monthly shift in corporate revenue collections skewed May’s results as net available tax revenues for the month dipped 5.6% below last year and 7.3% below forecast.

“Results in May reflect a shift of approximately $20 million in Corporate Income tax collections previously reported in April but normally expected in filings for May. This one-month shift boosted April results at the expense of May while year-to-date results now reflect a more realistic look at performance with one month remaining in the fiscal year,” said John Shelnutt, head of the Arkansas Department of Finance and Administration’s Economic Analysis and Tax Research division.

Shelnutt also declared that despite the May twist, “the budget is on track to be fully funded.” The state’s fiscal year ends June 30.

Shelnut also reported that monthly sales tax collections were a “further drag” on results compared to a year ago and forecast and he said individual income tax collections showed only “modest growth.”

At the end of May 2014, the state’s fiscal picture produced the following results:

• Year-to-date Net Available General Revenues: Year-to-date net available general revenues total $4.483 billion, $3.3 million or 0.1 percent above year ago levels. After eleven months into the fiscal year, net available revenue is above forecast by $52.9 million or 1.2 percent.
• Year-to-date Gross General Revenues: Year-to-date gross collections total $5.626 billion, representing an increase of $33.5 million or 0.6 percent above last year. Gross general revenues are above forecast by $16.3 million or 0.3 percent.
• Year-to-date Individual Income Taxes: Year-to-date individual income tax collections total $2.824 billion, $34.6 million or -1.2 percent below FY 2013 collections and $10.1 million or 0.4 percent above forecast.
• Year-to-date Sales and Use Tax Collections: On a year-to-date basis, sales and use taxes total $1.993 billion, an increase of $52.4 million or 2.7 percent from FY 2013 and $24.1 million or -1.2 percent below forecast.
• Year-to-date Corporate Income Taxes: Year-to-date corporate revenues total $374.2 million, an increase of $14.7 million or 4.1 percent from year-to-date FY 2013. Corporate income is above forecast by $18.0 million or 5.0 percent.

You can access the full revenue report here.