LITTLE ROCK, Ark. (AP) — State revenues rose slightly in January, leaving the state with $42.8 million more than expected in the bank, Arkansas' finance office said Thursday. Gov. Mike Beebe, however, cautioned lawmakers that he'll stick with a lean budget proposal.
The Arkansas Department of Finance and Administration said that a boost in sales and corporate tax collections gave the state $460.9 million in net available revenues for January — $1 million above the same month last year and $600,000 more than forecast.
In the current fiscal year, which began July 1, Arkansas' revenues total $2.8 billion, which is $78.3 million above the previous fiscal year's figures and $42.8 million more than forecast.
It's the final report before the Feb. 13 start of the legislative session, which will focus primarily on the budget. Beebe has proposed a $4.7 billion budget that increases spending for Medicaid and public schools, but keeps most other agencies flat. But lawmakers have said they want to look at funding for other areas, including a cost-of-living raise for state employees and restoring firefighting jobs to the state Forestry Commission.
The governor said the revenue figures mean the state has some extra money to lean on should the economy weaken or tax collections come in lower. He said the figures don't change the state's forecast for the upcoming fiscal year.
"It's not much of a cushion right now, but it's better than a deficit," Beebe said.
A legislative panel this week recommended restoring 20 employees to the Forestry Commission, which laid off 34 workers this month to shore up a $4 million shortfall. But the recommendation doesn't include a way to pay for the jobs.
Legislative leaders have also said that they want to explore whether the state could give a cost-of-living raise to some or all state employees. Beebe on Thursday said he believes state employees deserve a raise, but there's no money to pay for it.
Sen. Gilbert Baker, co-chair of the Joint Budget Committee, said some lawmakers are looking at options to fund both the firefighters and the state employees. But he agreed with Beebe, saying the latest figures shouldn't be taken as a sign that money will be easily available for either.
"I think it would be a mistake to use this month's revenue report as a tipping point in that regard," said Baker, R-Conway.
Finance and Administration Director Richard Weiss said he still believed the state's forecast was on track.
"I think it's a continuation of the same story that we're in a very slow and very jagged recovery," Weiss said.
In January, sales tax collections totaled $182.5 million, an $8.6 million increase over last year and $3.5 million above forecast. Corporate income tax collections totaled $26.1 million, which was $14.5 million above last year and $14.3 million above forecast. Individual income tax collections totaled $310.2 million, which was $800,000 below last year and $2.3 million below forecast. The state also paid out $34.3 million in individual income tax refunds, which was $11.8 million more than forecast.
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Andrew DeMillo can be reached at www.twitter.com/ademillo
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