LITTLE ROCK — Gov. Asa Hutchinson said Thursday he is hopeful there will be no need to adjust the state revenue forecast, based on a report showing state revenues rebounded in February.
A month ago, Hutchinson warned state agency heads to prepare for the possibility of a revised forecast and budget cuts because state revenues were $57 million below forecast for the fiscal year to date. On Thursday, the state Department of Finance and Administration reported that February revenues were $40.9 million above forecast.
Net available general revenues are now $15 million below forecast for the year to date, according to the monthly revenue report.
“I was pleased with it,” Hutchinson said Thursday when a reporter asked him about the report. “It bounced back the way we had hoped.”
The governor said the uptick in collections “reduces significantly the concern about having to adjust the forecast. We still will look at it month by month and evaluate it again next month, but hopefully that will mean we will not have to adjust the forecast.”
The state’s fiscal office said net available general revenues for the fiscal year that began July 1 total $3.4 billion, which is 0.4 percent below forecast and up $19 million, or 0.6 percent, from a year ago.
Net available general revenues in February totaled $276.7 million, which was down $3.2 million, or 1.2 percent, from a year ago and 17.3 percent above forecast.
Individual income tax collections last month totaled $214.9 million, which was up $9.1 million, or 4.4 percent, from February 2016 and $23.7 million, or 12.4 percent, above forecast.
Corporate income tax collections in February totaled $4.4 million, which was down $1.6 million from a year ago and $1.6 million below forecast.
Sales tax collections last month totaled $182.7 million, which was up $4.4 million, or 2.5 percent, from February 2016 and $3.6 million, or 1.9 percent, below forecast.
Amazon recently announced it would begin collecting sales taxes on purchases in Arkansas. Hutchinson said Thursday he did not have a projection of the amount of tax revenue the company is expected to remit to the state.