The tax collections that fund statewide programs like pre-K, education and roads took a dip last month, but are still ahead of schedule for the year as a whole. Because Arkansas requires a balanced budget according to the Revenue Stabilization Act, major drops in tax revenue collections can mean cuts to certain programs. So far, however, year-to-date collections are still on track for a fully funded budget.

Net available general revenue for March was overestimated by $13.2 million (it was 3.5 percent below forecasted amounts). March of this year was also lower than March of 2014 by about $21 million. Why the dip in revenue? Sales tax and individual income tax collections drew in less money than usual and that decline contributed to the stunted revenue. Part of the reason for this was a greater than expected shift in the payroll withholding rates following recent changes to the tax tables.

Some smaller tax revenue sources came in higher than anticipated, but not enough to offset the decline in sales tax and personal income tax revenue. Gaming tax revenue, for example, was above forecast by nearly 20 percent. Money from tobacco taxes was also higher than expected. So far this year, total general revenue is higher than expected by 2.2 percent (or $81 million) and is also larger than this time last year by 2.9 percent (or $105.9). Net general revenue represents the bottom line of funds available for distribution to state agencies and comes from taking certain off-the-top deductions from gross general revenue (like a portion of education adequacy funding and tax refunds).