State finishes fiscal year with $23.7 million surplus

LITTLE ROCK Arkansas ended the 2008-2009 fiscal year with a $23.7 million surplus, the state fiscal office reported Thursday.

The state's net available general revenues for the fiscal year, which ended Tuesday, totaled $4.4 billion, or .5 percent above forecast.

The governor and director of the state Department of Finance and Administration credited conservative budgeting during difficult economic times.

"That's pretty much hitting it about as close on the nose as you can hit it," Gov. Mike Beebe said on his monthly statewide radio show. "For those people a year ago who said we were too conservative ... I think this vindicates the DF&A folks and what they understood was likely to happen with the global recession."

DF&A Director Richard Weiss said he was "as pleased as punch" about his staff's work on budget forecasting.

.story-ad {

width: 310px;

float: left;

margin: 0 10px 10px 0;

padding: 4px;

}

- Advertisement -

OAS_AD('x22');

Their work was off the mark for June, however. State revenues fell $20.4 million or 4.5 percent, below forecast for the final month of the fiscal year. Tax collections for the month were 11.4 percent below a year ago.

Weiss attributed the figures to weak sales tax collections, down 11.9 percent in June compared to last year and 10.2 percent below forecast, and corporate income taxes, down 10.2 percent from a year ago and 10.4 percent below forecast.

The DF&A director said the forecast for the next six months does not look good, but he expects an economic rebound to begin early next year. The agency forecasts .6 percent revenue growth this fiscal year and 3.5 percent growth during the 2010-2011 fiscal year.

For the fiscal year ending Tuesday, individual income taxes totaled $2.7 billion, down $57 million, or 2.1 percent, from the previous year. Collections were $22.3 million, or .8 percent, below forecast.

Sales tax collections for the year totaled $2.1 billion, down $25.9 million, or 1.2 percent, compared to the previous fiscal year. Collections were $50.2 million, or 2.3 percent below forecast.

Corporate tax income tax collections for the year totaled $382 million, an increase of $2.8 million, or 8.1 percent, over the previous year. Collections were $72.8 million, or 23.5 percent, above forecast.