Net general revenues came in below expectations (by $9.8 million or 2.4 percent) and fell short of last year’s numbers (by $7.1 million or 1.7 percent) according to today’s report from the Arkansas Department of Finance and Administration. The overall drop in Arkansas state revenues during the previous month was mostly due to lower payments from Corporate Income tax and Sales and Use taxes. Net general revenue represents the bottom line of funds available for distribution to state agencies and is calculated by taking certain off-the-top deductions from gross general revenue (like a portion of education adequacy funding and tax refunds).
Higher than expected individual income tax refunds also pushed last month’s revenue collections downward. The soft drink tax, which benefits the Medicaid trust fund, saw a decrease of about $0.5 million down from last year. The July Tobacco tax was up by $1.8 million over this time last year and came in $2.8 million above expectations.