Arkansas officials estimate budget surplus to reach $1.473 billion

by Talk Business & Politics staff (staff2@talkbusiness.net)

With all key tax categories showing year-over-year gains through 11 months of Arkansas’ fiscal year, state officials project a fiscal-year end budget surplus of $1.473 billion, according to Thursday’s (June 2) revenue report from the Arkansas Department of Finance and Administration (DFA).

The fiscal year-to-date revenue is $7.876 billion, up 8.5% compared with the same period in 2021 and up 0.1% above a forecast that was revised May 18.

Individual income tax revenue in the first 11 fiscal months was $3.832 billion, up 5.3% from the same period in the previous fiscal year, and 0.1% above the revised budget estimate. Sales and use tax revenue, an indicator of consumer spending, was $2.868 billion in the first 11 months, up 9.2% compared with the previous fiscal year and $1.3 million above the revised budget forecast.

https://talkbusiness.net/2022/06/arkansas-officials-estimate-budget-surplus-to-reach-1-473-billion/

Largest Budget Surplus in Arkansas History Underscores Wisdom of Belt-Tightening, Governor Hutchinson Says

LITTLE ROCK – Arkansas’s net revenue for May was $263 million more than projected and $980 million more than projected for the first eleven months of Fiscal Year 2021. May’s gross revenue was $328 million higher than forecast, and the year-to-date gross was $1.04 billion more than projected.

“The $980 million current surplus is the largest surplus in the history of Arkansas,” Governor Asa Hutchinson said today. “This fact underscores the importance of the belt-tightening decisions we made during the pandemic and the strength of our economic recovery. The record surplus also tells us that this fall will be the right time to cut our individual income tax rate again. This surplus has been created despite reducing our tax rate this year to 5.9%.  This shows we can fund education, raise teacher pay and protect public safety at the same time we are lowering our tax rate. It is all because our private sector continues to grow."