Ark. state revenues for October above forecast

LITTLE ROCK, Ark. - State revenues for October came in generally above forecast, thought the figures arrived a day after Gov. Mike Beebe said the state has to brace for the effects of the nation's economic woes.

Net available general revenues were $1.55 billion, year to date, which is $72.3 million or 4.9 percent above last year and $71.1 million or 4.8 percent greater than the state fiscal office had forecast.

The Department of Finance and Administration said Tuesday general revenues were above forecast because of increases in individual income tax collections and $13.7 million that was transferred from unclaimed property proceeds.

On Monday, Gov. Mike Beebe cautioned that any surplus money in the legislative session that starts in January should be reserved to plug holes in the budget. Beebe said the state Medicaid program and prisons will likely receive additional funding, but other areas of government may have a tougher go finding more money.

Legislators have already begun fall budget meetings. A revenue forecast and budget proposal for the coming two-year budget cycle are expected to be released Nov. 13.

Gross general revenues, year to date, were $1.8 billion up $75.9 million or 4.4 percent from a year ago. The category is $72.3 million or 4.2 percent above forecast.

Year-to-date individual income taxes totaled $812.5 million, $41.1 million or 5.3 percent above last year and $35.0 million or 4.5 percent higher than forecast. Monthly withholding collections are up 3.5 percent from a year ago. Individual income tax refunds are also up, totaling $38.6 million. That's $3.1 million or 8.8 percent higher than last year. The figure is $1.4 million or 3.7 percent above forecast.

Year-to-date gross receipts, which mainly include sales and use taxes, on a year-to-date basis, were $741.2 million, up $21.1 million or 2.9 percent and $11.0 million or 1.5 percent above forecast.

Corporate income taxes were $119.6 million, year-to-date, a decrease of $7.1 million or 5.6 percent from a year ago. Corporate income tax refunds totaled $9.3 million, up $2.3 million or 33.5 percent from a year ago $0.4 million or 4.0 percent above forecast.

For October, the state took in $352.4 million in general revenues, up $8.1 or 2.4 percent million from a year ago and $7.9 million or 2.3 percent above forecast.

October gross general revenues were $423.8 million, up $13.1 million or 3.2 percent above last year and $11.6 million or 2.8 percent above forecast.

Individual income tax collections for the month were $196.2 million, up $7.8 million, or 4.2 percent, from October 2007. That's $4.2 million or 2.2 percent above forecast. Individual withholding increased 4.7 percent compared to last year.

October individual income tax refunds were $17.4 million, up $4.5 million or 34.6 percent above October 2007. The figure is 27.8 percent above forecast for the month.

October gross receipts collections were $178.1 million, up $1.1 million or 0.6 percent from last year. Corporate income tax collections for the month were $28.8 million, up $4.0 million or 16.2 percent from a year before, and $5.5 million or 23.5 percent above forecast. Corporate income tax refunds were $2.9 million, $1.0 million or 50.2 percent above year ago refunds.

October tobacco tax collections, totaled $12.9 million or 4.4 percent above last year.

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