State general revenue increased in November by $18.3 million over the same month a year ago to $533.5 million and exceeded the state’s April 2 forecast by $31.5 million.
Both individual income tax and sales and use tax collections increased last month from a year ago and exceeded the state’s forecast, the state Department of Finance and Administration said Wednesday in its monthly revenue report.
Individual income tax collections were bolstered by November having one more payday than the same month a year ago, said John Shelnutt, the state’s chief economic forecaster.
In November, Arkansas’ net general revenue available to state agencies increased by $32.2 million over a year ago to $464 million and exceeded the state’s forecast by $51.5 million.
November is the fifth month of fiscal 2021, which started July 1.
So far in fiscal 2021, the state’s net general revenues have increased by $274.8 million over the same period in fiscal 2020 to $2.6 billion and exceeded the state’s forecast by $283.3 million.
On April 2, the finance department cut its original net general revenue forecast for fiscal 2021 by $205.9 million to $5.68 billion, citing a projected recession triggered by the covid-19 pandemic. That forecast will provide $5.68 billion for the state’s fiscal 2021 budget, leaving $212.2 million of the $5.89 billion budget unfunded.
Shelnutt said there is continued uncertainty about the impact of the expiration of federal stimulus payments and collections from individual income tax returns that will be due on April 15.