State collections in May continue to push general revenues above forecast for the year as a whole. Last month, general revenue collections reached a healthy $335.9 million. That total was $20.5 million (or 6.5 percent) higher than last year and well above forecasted amounts (by $40.3 million or 13.6 percent).  Arkansas has collected more than expected in revenues lately, with year-to-date totals that are beating last year’s numbers by $180 million (or 4 percent) and are higher than what experts predicted by $40 million (or .9 percent).

These numbers are important because they represent possibilities for investing in our state, and insurance against budget cuts that could happen if revenues take a dip. 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 education adequacy funding and tax refunds).  In May, revenues were higher than expected across the board. This included all major categories like individual and corporate income taxes, and sales tax. Some smaller sources were lower than expected (like tobacco and gaming taxes) but not enough to tip the scales in the other direction for the month as a whole.