Arkansas' general revenue surplus totaled $945.7 million in fiscal year 2021 that ended Wednesday, the state Department of Finance and Administration reported Friday morning.
That’s a record surplus in a fiscal year based on state records for the past 30 years.
The state’s previous general revenue surplus record in this period was $409.3 million in fiscal 2007, said finance department spokesman Scott Hardin.
Gov. Asa Hutchinson said the state’s record general revenue surplus "allows the state to increase our reserves to more than $1.2 billion and increase our Medicaid trust fund as well to make sure we can continue our health care coverage for low income Arkansans.
"The most impressive part of the revenue report is that our individual income tax collections increased year over year despite lowering the tax rate to 5.9% at the beginning of the calendar year,” he said.
"This showcases the fact that a growing economy along with conservative management of our resources allows us to fund education at a high level and other state services and to cut taxes at the same time.”
In fiscal 2021, the state’s total general revenue collections reached $8.1 billion, an increase of $1.15 billion or 16.6 % over fiscal 2020, the finance department said. That exceeded the state’s April 2, 2020, forecast by $1.22 billion or 17.8 %.
The state’s net general revenue collections in fiscal 2021 totaled $6.84 billion, an increase of $1.09 billion or 19 % over fiscal 2021. That exceeded the state’s April 2, 2020, forecast by $1.15 billion or 20.4 %.
The finance department on Wednesday boosted the state’s net general revenue forecast from April 2, 2020, by $212.3 million to $5.89 billion to fully fund the state’s general revenue budget for fiscal 2021.
The primary beneficiary of the state’s general revenue surplus will be the state’s long-term reserve fund, which Gov. Asa Hutchinson has described as the state’s long-term savings account. The funds total wasn’t immediately available from the finance department on Friday morning.