State income drops | Arkansas Blog

Thursday, July 2, 2009

State income drops

Posted By on Thu, Jul 2, 2009 at 9:43 AM

Even allowing for a one-time accounting oddity, state revenue was way down in June compared with both the same month a year ago and the forecast.

Gross state revenue in June was down 8.2 percent below last year and 5.7 percent below forecast. Net -- amount remaining after mandatory transfers off the top to certain state funds -- was down 11.4 percent year-to-year and 4.5 percent below forecast.

State Finance and Administration Director Richard Weiss isn't ready to panic. He notes: 1) the state met its overall forecast for the year, which ended June 30; 2) the monthly forecast for June had not been adjusted downward to reflect evidence months ago that it was overly optimistic; 3) forecasts for the new year, which began July 1, are much more modest -- growth of less than 1 percent for the year.

Weiss said weak sales taxes and income taxes "are a concern," but merely relfect the national reality. He said economists still believe at least modest improvement in the national economy will occur by the end of the year.

Fingers crossed. The budget contains no reserve or cushion should the economy not meet expectations.

Sign up for the Daily Update email


Subscribe to this thread:

Add a comment

More by Max Brantley

Readers also liked…

  • The inspiring Hillary Clinton

    Hillary Clinton's campaign for president illustrates again the double standard applied to women. Some writers get it. They even find the supposedly unlikable Clinton inspiring.
    • Oct 16, 2016
  • Trump's strangulation of Obamacare

    If he can't kill it outright, Donald Trump will do all he can to cripple Obamacare. Vox has detailed reporting on deep cuts in federal spending that support nonprofit agencies that help people sign up for coverage under the Affordable Care Act.
    • Sep 18, 2017
  • UPDATE: Hutchinson moves to cover himself on cut to War Memorial Stadium

    Gov. Asa Hutchinson apparently felt the burn from KARK's exclusive Tuesday night on his plans to cut state support of War Memorial Stadium in half beginning July 1, 2018. He has a so-far secret plan to make the stadium self-sustaining. We bet that doesn't include state support.
    • Oct 20, 2016

Most Viewed

Most Recent Comments



© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation