LITTLE ROCK — Tax collections in Arkansas were 5.9 percent above forecast in April and 5.1 percent above collections a year ago, the state’s fiscal office reported today.
State Department of Finance and Administration Director Richard Weiss also said the revenue forecast for next fiscal year is on track, with no budget revisions anticipated.
“There is enough uncertainty on the horizon, I think in the economic sector of this country, that while we are doing better at the present time — we have a good report out today for the month — we don’t feel like that is going to translate into making any changes at this point in the forecast we have for next year,” Weiss told the Joint Committee on Economic and Tax Policy.
In early March, after a three week fiscal session, Gov. Mike Beebe signed into a law a $4.7 budget for the fiscal year that begins July 1.
The budget, which projects 3.5 percent growth in revenue in the 2012-2013 fiscal year. kept spending flat for most agencies but increased funding by $114 million for Medicaid and by $56 million for public schools. Some colleges and universities also will receive increases.
Independent reporting for Pine Bluff & Jefferson County since 1879.
For April, general revenue collections totaled $718.2 million, an increase of $30.6 million, or 4.4 percent, above forecast, and $33.9 million, or 5 percent, above last year.
The April revenue report showed net available revenue at the end of the month totaled $558.9 million, $31 million above forecast and $27.3 million above last year.
“April is always a big month because of tax collections,” Weiss said.
Beebe said he was encouraged “that the bulk of the growth is in income tax withholding, which means people are working.”
The governor said the April revenue report was good news and shows the economy continues to improve.
“I’m still cautious, but all indications suggest that the trend is continuing,” he said.
The report also showed that during the first 10 months of the current fiscal year, the state collected $93.6 million more in revenue than forecast.
Sales tax collections in April totaled $181.1 million, which was $2.4 million, or 1.3 percent, above forecast, and $7.9 million, or 4.5 percent, above last year.
Weiss said the state is “definitely seeing continued recovery from the recession.”
“I couldn’t sit here and say that we’re completely out of it,” he said. “We still have not gotten to the point in sales tax for the year that we have forecast.”
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Reporter John Lyon contributed to this report.