By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — Despite a transfer of $60.1 million in surplus funds from the previous fiscal year and $10 million in unclaimed property proceeds, state revenues in July were 3.2 percent below forecast, the state fiscal office reported Tuesday.
Department of Finance and Administration Deputy Director Tim Leathers blamed the continued slump on sales tax and income tax collections.
“We’re a little bit under forecast, but we still think we’re on target,” Leathers said. “Sales tax and income tax collections are below forecast a little bit, but compared to what we’re seeing in other states we’re holding well and it’s too early to take that as a trend this year.”
Leathers said DF&A expects income tax and sales tax collections to begin rising later this fiscal year.
Net available general revenues totaled $412 million, including $10 million in unclaimed property proceeds and $61 million in surplus funds, mandated by Act 1441 of 2009 — a $13.7 million or 3.2 percent drop in revenue from July 2007.
Because of the continued slump in the economy, which isn’t expected to improve for at least another six months, Gov. Mike Beebe included in his proposed balanced budget for the current fiscal year a transfer of $60 million from surplus funds at the end of the last fiscal year.
The state ended the 2008-2009 fiscal year with a $23.7 million surplus. The state’s net available general revenues for the fiscal year, which ended June 30, totaled $4.4 billion, or 0.5 percent above forecast.
For July, individual income tax collections totaled $173 million, down $5.4 million, or 3 percent, compared to a year ago. Collections in that category were also below forecast by $5.5 million, or 3.1 percent.
Sales tax collections totaled $172.8 million, down $15.9 million, or 8.4 percent below last year.
Corporate income tax collections totaled $18.7 million, an increase of $3.3 million, or 21.5 percent compared to a year ago. Collections came in at $3.4 million, or 22 percent above forecast.
