Arkansas’ general revenue was down for the month of October compared to last year but exceeded the state’s forecast, according to the latest revenue report released Thursday by the Arkansas Department of Finance and Administration.
The state collected $659.9 million in general revenues in October, a $50.8 million decrease, or 7.1%, compared to this time last year. However, October’s general revenue beat the state’s forecast by $16.3 million, or 2.5%.
According to analysis from the Department of Finance and Administration, gross revenue collection is down compared to this time last year due in part to “tax rate reductions and lower income tax liability in adverse year ago comparisons for business earnings, bonuses, and capital gains.” October’s revenue report is similar to those from August and September, when revenue was down compared to the same time last year but still above what state analysts predicted.
Year-to-date revenues are also down compared to a year ago but still exceed the state's forecast. Year-to-date net available revenue totaled $2.3 billion, which was 6.8% below levels from a year ago, but surpassed the state’s projection by $115.8 million, or 5.3%.
Tax refunds and some special government expenditures are taken off the top of total general revenue collections, leaving a net amount that state agencies can spend up to the maximum authorized by the state’s Revenue Stabilization Act, the law that distributes general revenue to state-supported programs such as public schools, colleges and universities, corrections and human services.
“Year-to-date results exceed our forecast by $115.8 million, despite the revenue impact of recent tax cuts and the return of economic activity toward more normal levels,” Jim Hudson, secretary of the Arkansas Department of Finance and Administration, said in a statement.
Individual income tax collections also were down in October compared to last year by 13.5%, totaling $306.2 million, but exceeded the state’s forecast by 2.4%. Corporate income tax revenue totaled $34.4 million in October, a decrease of $4.2 million from a year ago but $14.4 million above the forecast.