State general revenues in May dropped by $14.3 million over a year ago to $481.9 million, but exceeded the state’s forecast by $65.1 million, state Department of Finance and Administration officials said Tuesday morning.
They said the state’s tax collections appear to be dropping less than other states due to the covid-19 pandemic.
The state’s individual income tax collections last month increased slightly compared to a year ago and exceeded the state’s forecast by $48.4 million, while sales and use tax collections dipped from a year ago and exceeded the state’s forecast by $16.2 million. Individual income tax and sales tax collections are the state’s two largest sources of general revenue.
The state’s net available general revenues available to state agencies fell in May by $12.8 million from a year ago to $365.8 million and exceeded the state’s forecast by $80.6 million.
May is the eleventh month of fiscal year 2020 that ends June 30.
During the first 11 months of fiscal year 2020, net available general revenues available to state agencies dropped by $105.7 million from the same period in fiscal 2019 to $5.1 billion, but are $287 million above forecast.
In March, Gov. Asa Hutchinson’s administration cut the general revenue budget in fiscal 2020 by $353 million to $5.38 billion, citing the effect of the coronavirus pandemic on state tax revenues and shifting the April 15 deadline for filing and paying individual income taxes until July 15.
Fiscal 2021 begins July 1.