LITTLE ROCK — The state’s fiscal office said Friday that because of improved revenue collections it has restored $60 million of a $70 million budget cut that was announced earlier this year.
Gov. Asa Hutchinson said in April the budget was being cut because revenues had lagged below projections for several months.
But the state Department of Finance and Administration said in a statement Friday that “strong collections in May and June, sparked in part by a rebound in sales tax collections, led to an additional revision at the close of the fiscal year, June 30.”
“We’ve had an unusual year in many regards,” said Larry Walther, the state’s chief fiscal officer. “Sales taxes were down for much of the year and behind our expectations. However, that changed for the better over the last two months.”
With Friday’s revision, the state will have spent $5.32 billion in fiscal 2017, the agency said.
Of the $60 million restored to the budget, $43 million will go to the state’s Medicaid Trust Fund, according to DF&A.