The state’s general revenue tax collections in April dropped by $270.9 million from a year ago to $687.8 million, but exceeded the state’s forecast by $103.8 million, state officials reported Monday.
April typically is the state’s largest month for general revenue tax collections, but Gov. Asa Hutchinson shifted the April 15 deadline for individual income tax filing and payments to July 15 to coincide with the federal government’s extension of those deadlines because of the coronavirus pandemic.
State officials said Monday that the state collected more individual income and corporate income taxes than forecast and that’s why April’s collections exceeded the state’s forecast. They expect May’s collections to show more of the impact from the business slowdown due to the coronavirus.
Changes brought about by covid-19 led Hutchinson's administration on March 23 to cut the state’s net general revenue budget for fiscal 2020 that ends June 30 by $353 million to $5.38 billion.
Fiscal year 2021 starts July 1. The Legislature in a special session subsequently authorized the creation of a covid-19 rainy day fund totaling $173 million to help fill state budget holes and unexpected needs prompted by the coronavirus.
In April, the state’s net general revenue dropped by $213.8 million below a year ago to $537.3 million, but exceeded the sate’s forecast by $177.7 million, the state reported Monday.
In the state’s shortest-ever fiscal session last month, the Legislature enacted a general revenue budget of $5.89 billion for fiscal 2021. The state’s latest revenue forecast for the fiscal year would provide $5.68 billion for that budget and leave $212.2 million unfunded.
On April 2, Hutchinson’s administration cut the fiscal 2021 forecast by net general revenue budget $205.9 million, citing an expected recession from the pandemic.
Read Tuesday's Arkansas Democrat-Gazette for the full story.