LITTLE ROCK, Ark. (AP) - Arkansas is starting the new fiscal year with a $23.7 million surplus, state finance officials said Thursday, but it faced a dip in revenue last month.
The Arkansas Department of Finance and Administration reported that the state's net available revenue for the fiscal year that ended this week came to $4.4 billion. That's $23.7 million above predictions.
The state's revenue in June, however, fell below last year's numbers and were below forecasts.
DFA director Richard Weiss said the drop indicates that the state is going to face a tighter cash flow over the next six months. He said, however, that he doesn't see a need to change the state's forecast for the fiscal year.
"The outlook is not great," Weiss told reporters.
Arkansas had previously built a $310 million surplus, a third of which lawmakers set aside to pay for expected shortfalls in this year's budget.
Lawmakers also set aside $60 million from the surplus for the House and Senate to use for various projects and programs, while Gov. Mike Beebe has $63 million to use at his discretion for programs.
Beebe said the surplus the state starts the year with is significant when compared to the budget problems that other states are facing.
"That doesn't sound like a big deal until you look at all the other states having the difficulties that they're having," Beebe said on his call-in radio show Thursday morning.
The June figures, however, indicated a bleaker picture for the state in the coming months. Net available revenue totaled $435 million, $55.9 million below last year and $20.4 million below predictions.
Sales tax collections totaled $158.1 million, which was $22.6 million below last year and $22.2 million below forecast. Individual income tax collections totaled $231.2 million, which was $31.2 million below last year's figures and $26.2 million below forecast.
The state began its fiscal year Wednesday with two major tax cuts taking effect, a 1 cent cut in the sales tax on groceries and a cut in the tax that manufacturers pay on utilities.
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