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State revenues beat expectations, rise slightly in April Saturday, May 3, 2008 By Jason Wiest Arkansas News Bureau LITTLE ROCK - State revenues came in near target in April, beating the fiscal forecast by 2.4 percent, or $12.9 million, state fiscal officers reported Friday. Net available general revenues totaled $552.1 million in April, just $1 million more than in April 2007. Sales tax collections of $170.4 million missed forecast by $9.6 million, or 5.6 percent, and fell below year-ago levels by $14.8 million, or 8 percent. While some of the decrease in sales tax collections is explained by the halving of the grocery tax last July, the national economic slowdown is also responsible, Department of Finance and Administration deputy director Tim Leathers said. "We think we're starting to see the beginnings of that downtrend that we've already said we're expecting next year," Leathers said. Sales tax collections in the construction sector, as well as from department stores, were down in April, he said. Last month, the department cut the state's budget for the upcoming fiscal year, which begins July 1, by $107 million, citing the economic slowdown. But Arkansas is not as bad off as some other states at this point, Leathers said. Individual income tax collections are an indicator of a lagging economy, and in April, Arkansas' individual income tax collections totaled $461.9 million, up 8.6 percent over last April and ahead of forecast by 10.1 percent, or $42.5 million. "In April, Tennessee was down 5 percent in sales tax and they don't have an income tax, so they're really hurting," Leathers said. Corporate income tax collections in Arkansas totaled $43.4 million in April, down $19.6 million, or 31.1 percent since a year ago and below forecast by 24.7 percent. Tobacco tax collections, a smaller component of general revenue, totaled $11.9 million, up 4.5 percent compared to April 2007. On the year, net available general revenues total $3.74 billion, up $49.9 million or 1.4 percent compared to the same point in time last year and above forecast by $158.3 million. |
