DALLAS - Arkansas' budget will be fully funded for the fiscal year ending June 30, despite a 5.6% drop in revenues in May, according to John Shelnutt, administrator for economic analysis and tax research at the Department of Finance and Administration.
"Year-to-date results now reflect a more realistic look at performance with one month remaining in the fiscal year," Shelnutt wrote in his monthly report. "The budget is on track to be fully funded."
Figures for May showed a $20 million shift in corporate income tax collections previously reported in April but normally expected in filings for May, Shelnutt said.
"This one-month shift boosted April results at the expense of May," he said.
Revenues in May were 5.6% below the same month in 2013 and 7.3% below forecast, according to the June 2 report.
With one month remaining in fiscal year 2014, net available general revenues to date total $4.5 billion, up $3.3 million, or 0.1%, from a year ago, the report said. That is above forecast by $52.9 million, or 1.2%.
Individual income tax collections for May were $203.6 million, an 1.2% increase of $2.5 million from a year ago and below the monthly forecast by $3.5 million, or 1.7%.
May sales tax collections totaled $180.7 million, down $3.3 million or 1.8% from a year ago and below the monthly forecast by $9.9 million, or 5.2%.
For the year to date, sale tax collections total nearly $2 billion, up $52.4 million, or 2.7%, from a year ago but $24.1 million, or 1.2% below forecast.
In the 2015 fiscal year beginning July 1, the state will operate under a $5 billion state budget approved by lawmakers in March.
Arkansas ended fiscal 2013 with a $300 million surplus, Gov. Mike Beebe said Tuesday, but much of the surplus may be from taxpayers who paid in 2012 to avoid a higher federal income tax bill.
The state collected $5.027 billion in fiscal 2013, the Department of Finance and Administration said in its monthly revenue report. The total was $299.5 million more than budgeted for the year.
Arkansas carries general obligation bond ratings of AA from Standard & Poor's and Aa1 from Moody's Investors Service, with stable outlooks.