Arkansas Elevates Budget Surplus Projection to $334.4 Million

Arkansas is now anticipated to conclude the current fiscal year with a substantial budget surplus of $334.4 million, according to the state's top financial official. This updated forecast from Department of Finance and Administration Secretary Jim Hudson represents a significant increase from the adjusted projection released last summer for the fiscal year ending June 30. Previously, in May, the surplus estimate had been lowered to $185.1 million.

In a communication addressed to the chairs of the Arkansas Legislative Council, Secretary Hudson detailed that the state's net available revenue for this fiscal year is expected to surpass $6.8 billion. This figure is $149 million higher than both the previous fiscal year's revenue and the forecast made in May. Looking ahead, Hudson also projected that the state's net available revenue for the fiscal year commencing July 1 will climb by $187 million, exceeding $7 billion.

These revised surplus figures emerge just over two months before legislators reconvene at the Capitol for their annual session, which is primarily dedicated to budget-related matters. Governor Sarah Huckabee Sanders has yet to indicate whether she plans to advocate for another round of tax reductions this year, either within the regular fiscal session or a special legislative session.

Secretary Hudson further noted that the state benefited from certain one-time revenue sources. This notably included the income taxes collected from the winner of the $1.8 billion Powerball ticket sold in Arkansas. The state garnered $32 million in taxes from the individual, who opted for a lump sum payment of nearly $835 million.