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Arkansas January Revenue Lags, $57 Million Below Projections For Fiscal Year

Arkansas state revenue fell short of projections for the month of January, bringing collections to $57.1 million below forecast for the first seven months of the fiscal year.

The Department of Finance and Administration says state net revenue came in 8.1 percent below forecast last month. January individual income tax collections came in about $26.8 million below forecast, with sales and corporate income taxes also falling slightly below projections.

The state collected $535.9 million in net revenue last month. In the fiscal year, which began on July 1, 2016, the state has collected $3.16 billion in net revenue. That’s $22.3 million above year-ago levels and 1.8 percent below forecast.

The DF&A released the revenue report a day after Gov. Asa Hutchinson signed into law a tax cut for low-income people that’s expected to cost the state about $50 million. The cuts are set to take effect beginning in 2019.  

Hutchinson told reporters Thursday he's asking several state agencies to make plans for possible cuts to the budget, according to the Associated Press. Hutchinson said he would make a decision on the state budget by March.

This article was updated on 2/3/17 at 8:58 am.

Copyright 2017 KUAR

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.
Chris Hickey was born and raised in Houston, Texas, spending his teenage years in Camden, Ohio. He graduated from Hendrix College in Conway, Arkansas, majoring in English. He got his start in public radio working as a board operator at WMUB in Oxford, Ohio during his summer and winter breaks from school. Since graduating, he has made Little Rock home. He joined KUAR in September 2011 as a production intern and has since enjoyed producing, anchoring and reporting for the station. He is the composer of KUAR's Week-In-Review Podcast theme music and the associate producer of Arts & Letters.