Halfway through the fiscal year Arkansas finance officials report revenue collections are $44 million dollars, or 1.7 percent, higher than expected. The Department of Finance and Administration report released Monday shows a drop in individual income and sales tax collections for the month, however corporate tax collections increased by $21 million.
DFA economist John Shelnutt cautioned higher than anticipated corporate tax collections are not expected to continue in the long-term.
“We can’t really say that corporate income is going to be continuous anyway, which accounted for the gain in December,” said Shelnutt.
While December’s report was above projections, Shelnutt said that doesn't mean the state isn't operating on a tight budget.
“We need a bit of a cushion going into the income tax filing season. So, in context I think we’re about right on forecast given the risk coming into the income tax filing season.”
Net available revenue for the state is 3.3 percent above what is was this time last year.
