Arkansas Revenue Below May Forecast But Above Most Projections For Year

Jun 2, 2016

Arkansas Department of Finance and Administration building in Little Rock.

Arkansas finance officials say a mild winter and a court settlement led revenue numbers to dip below forecast for the month of May but be above levels compared to the same month last year.

In May gross general revenue fell 1.7 percent below forecast at $432.9 million and sales tax collections dropped $21.2 million or 11 percent below expectations.

Arkansas Department of Finance and Administration economist John Shellnutt says other than the impacts of an $8.2 million court settlement and lower energy consumption state revenues are on track.

“We would be essentially on forecast were it not for that one time refund which was related to a court case. Beyond that also in sales tax we had probably our last month of negative effects of the warm winter in the utility portion of sales tax,” say Shellnutt.

He says year-to-date numbers show consistency with expectations.

“Overall we’re essentially on forecast and the year-to-date gives us a more reliable story that we’re on track with the forecast and will produce a surplus at the end of the year which is one month away,” say Shellnutt.

Net available general revenue, 11 months into the fiscal year, is 2.2 percent or $104.8 million above forecast and 3.5 percent above year ago levels.  Sales and use tax collections are 9 percent or $18 million below forecast but up 2.8 percent from last year.