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Arkansas ends fiscal year with nearly $1 billion surplus

July 2, 2021 GMT

LITTLE ROCK, Ark. (AP) — Arkansas ended the fiscal year with a surplus of nearly $1 billion, more than double the state’s previous record, finance officials said Friday.

The Department of Finance and Administration said the state ended the fiscal year on June 30 with a surplus of $945.7 million. The state’s net available revenue for the fiscal year totaled more than $6.8 billion.

The state’s previous record was the $409.3 million surplus accumulated in the 2007 fiscal year, the department said. Gov. Asa Hutchinson said this year’s surplus allowed Arkansas to grow its reserves to more than $1.2 billion and add to its Medicaid trust fund.

The Republican governor noted that the state’s individual income tax collections increased over the previous year and beat the state forecast despite a tax cut that took effect this year. Hutchinson has said he plans to call a special session to take up additional tax cuts this fall.

The state’s sales and corporate income tax collections also came in above the previous year and state forecasts.

“This showcases the fact that a growing economy along with conservative management of our resources allows us to fund education at a high level and other state services and to cut taxes at the same time,” Hutchinson said in a statement.