LITTLE ROCK —Arkansas’ fiscal office on Tuesday released a revenue report showing below-forecast collections for the fiscal year to date and lowered its forecast for next year’s collections by $43 million.
According to the state Department of Finance and Administration’s monthly revenue report, net available general revenues for the fiscal year that began July 1 total $4.4 billion. Revenues are $54 million, or 1.2 percent, below forecast and down $50.1 million, or 1.1 percent, from a year ago.
Gov. Asa Hutchinson said in an April 28 news conference that because of an expected shortfall in collections he was cutting $70 million from the state’s budget for May and June, the last two months of the fiscal year. He said efficiency measures have created enough savings at state agencies to allow the budget cuts to be implemented without affecting services or requiring any layoffs.
On Tuesday, Hutchinson said the revision to the forecast for the fiscal year that begins July 1 requires cuts to his proposed budget that also will not affect services or require layoffs.
“These cuts just reflect the fact that the budget for 2018 will be tight; however, no layoffs are expected and services will go on uninterrupted,” he said in a statement. “I will continue to monitor the budget, as I’ve always done, as we enter a new fiscal year.”
For the month of April, net available general revenues totaled $660.9 million, which was down $400,000, or 0.1 percent, from a year ago and $11.3 million, or 1.7 percent, above forecast.
A change in the due date for corporate tax filings positively affected April revenues, although not enough to bring year-to-date revenues up to forecast, according to the state’s fiscal office.
Individual income tax collections last month totaled $522 million, which was up $16.7 million or 3.3 percent, from April 2016 and $9.7 million, or 1.8 percent, below forecast.
Corporate income tax collections totaled $78 million in April, which was up $22.1 million from a year ago and $31.7 million above forecast.
Sales tax collections last month totaled $190.2 million, which was down $2.4 million, or 1.3 percent, from April 2016 and $11.1 million, or 5.5 percent, below forecast.