Arkansas budget surplus 19.1% above forecast, nears $1 billion

Arkansas – Arkansas budget shows a $980 million surplus in the latest fiscal report for May 2021. The end of the fiscal year in the state ends June 30.

Officials expect the budget surplus to reach $1 billion by the end of the period.

On an annual basis:

• Individual income taxes topped $3.640 billion, up $539.2 million (17.4%) above forecast.
• Corporate income taxes totaled $536.9 million, up $157.6 million (41.6%) above forecast.
• Sales and use taxes cleared $2.627 billion, up $295.6 million (12.7%) above forecast.

“Net available revenue results were above forecast in all major categories in May. Sales growth was broad-based. Individual Income Tax gains partly reflect the recent filing date change and continued economic growth. Payroll Withholding Tax collections also exceeded forecast reflecting underlying economic growth. Corporate Income Tax collections also exceeded forecast with gains in returns with payments and estimated tax payments,” John Shelnutt, DFA’s director of Economic Analysis and Tax Researchsaid said.

Last time when Arkansas budget was near $1 billion surplus was in 2006-2007.