A decline in individual Arkansas income tax collections and weak sales tax collections both contributed to a $20.2 million revenue decrease last month compared to December 2007.
Total monthly revenue was $457.7 million, $19.7 million more than the estimate due to higher-than-expected revenue from corporate income taxes. December individual income tax collections totaled $190.6 million, down $31.6 million from December 2007 and $1.4 million less than anticipated.
Richard Weiss, director of the Department of Finance and Administration, said the lackluster individual income tax collections indicate a slowdown in the state’s economy.
Sales and use tax revenues rose $700,000 from December 2007, $600,000 less than expected. General revenue in the first six months of fiscal 2009 totaled $2.66 billion, an increase of $80.1 million over the same period in fiscal 2008 and $32.7 million above the forecast.
Net revenue for the same period totaled $2.3 billion, an increase of $74.6 million from fiscal 2008 and $34.8 million above the forecast.
In May, Gov. Mike Beebe ordered state agencies to trim their fiscal 2008 spending by almost $107 million in anticipation of a mild recession.
