LITTLE ROCK, AR. - The state of Arkansas is expected to conclude its 2026 fiscal year with a significant financial surplus. Jim Hudson, Secretary of the Arkansas Department of Finance and Administration, announced that the May revenue reports indicate the state is in a strong position as it approaches the end of the budget cycle on June 30.
According to the latest reports, the state is forecasting a total surplus of $585.8 million by the end of June. Hudson noted that net general revenue collections for May exceeded revised forecasts by $10 million, reinforcing the department's confidence in a substantial year-end surplus.
Overall growth has been steady throughout the year. Year-to-date figures through May show gross general revenue at $7.76 billion, which is a 4.4% increase - or $323.6 million - above the previous year. This figure also sits $9.7 million above the initial forecast. Net general revenue, which accounts for gross revenue minus expenses, currently stands at $6.36 billion, marking a $456.8 million increase over last year.
Specific tax sectors contributed heavily to these gains in May. Individual income tax collections reached $254.1 million, up $22.2 million from the prior year. Corporate income tax collections totaled $19.9 million, an increase of $5.9 million over last year and $900,000 above projections. Additionally, the state saw a decrease in tax refunds, with individual and corporate refunds dropping by $7.1 million and $8.8 million, respectively.
For the month of May alone, net general revenue was $491.5 million, an increase of $52.1 million compared to May of last year. Detailed monthly revenue reports are available for public review on the official DFA revenue website.
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