Arkansas state revenue fell short of projections for the month of January, bringing collections to $57.1 million below forecast for the first seven months of the fiscal year.
The Department of Finance and Administration says state net revenue came in 8.1 percent below forecast last month. January individual income tax collections came in about $26.8 million below forecast, with sales and corporate income taxes also falling slightly below projections.
The state collected $535.9 million in net revenue last month. In the fiscal year, which began on July 1, 2016, the state has collected $3.16 billion in net revenue. That’s $22.3 million above year-ago levels and 1.8 percent below forecast.
The DF&A released the revenue report a day after Gov. Asa Hutchinson signed into law a tax cut for low-income people that’s expected to cost the state about $50 million. The cuts are set to take effect beginning in 2019.
Hutchinson told reporters Thursday he's asking several state agencies to make plans for possible cuts to the budget, according to the Associated Press. Hutchinson said he would make a decision on the state budget by March.
This article was updated on 2/3/17 at 8:58 am.