Gov. Asa Hutchinson said more tax cuts are likely after announcing the state's budget surplus was $177 million for the most recent fiscal year.
A growing economy contributed to a 4.4 percent net growth in income tax revenues, which the governor touted as the result of "conservative budgeting."
"The sky has not fallen because we had a tax cut, but as expected, it helped our economy grow," Hutchinson said.
State law requires lawmakers to pass a balanced budget.
Hutchinson said he expected to introduce a new round of tax cuts during next year's fiscal session, with an emphasis on income tax reductions.
Afterward, the governor also announced a coming economic development trip to Europe that will last from Saturday through July 14.
Along with officials from the Arkansas Economic Development Commission, Hutchinson will attend the Farnborough International Airshow in England to meet with aerospace industry representatives before traveling to Berlin to open a new commission office for the continent.
The commission has similar offices in China and Japan.
Read Wednesday's Arkansas Democrat-Gazette for full details.