Arkansas concluded FY2024 with a surplus of $698.4 million, despite a 4% decrease in overall revenue compared to FY2023, attributed largely to recent income tax cuts, while sales tax revenue showed a modest increase.
Arkansas Ends Fiscal Year with $698.4 Million Surplus Despite Tax Cuts
According to the KNWA Fox 24, Arkansas ended its financial year with good news, boasting a surplus of $698.4 million, as reported by the Department of Finance and Administration. They collected a total of $6.9 billion in revenue for the year, slightly below the revised forecast by $9.7 million. This marks a 4% decrease from the previous fiscal year, mainly due to tax cuts passed in 2023 by Arkansas lawmakers, which led to less money coming in from individual and corporate income taxes.
Despite these cuts, Arkansas residents received more in tax refunds, totaling $782.9 million, which was 1.9% higher than the previous year. Sales and use taxes also saw growth, bringing in $3.48 billion, an increase of 1.8% from the previous fiscal year. June showed positive outcomes for individual income taxes but corporate income taxes fell short. Revenue from tobacco and alcohol sales was lower than expected, while insurance and gaming revenues exceeded forecasts.
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$698.4 Million Surplus: Arkansas Wraps Up Fiscal Year 2024 with Resilient Financial Outlook (PHOTO: The Arkansas Democrat-Gazette)
Arkansas Fiscal Year of Educational Adequacy Fund Deposit June 2024
Furthermore, Arkansas deposited $63.8 million into the Arkansas Educational Adequacy Fund in June, with $61.9 million remaining after deductions. Overall, the state collected $729 million in funds for FY2024, up 2.2% from the previous year, indicating a resilient financial stance despite adjustments in tax policies and economic fluctuations.
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