DALLAS — Arkansas' revenues in November surged 11.8% above the same month last year and 6.8% above the forecast, according to John Shelnutt, state director of economic analysis and tax research.
Year-to-date net available general revenues total $2.2 billion, which is $72.7 million or 3.6% above the same period in 2013. After five months into the fiscal year, net available revenue is 1.2% or $24.8 million above forecast, Shelnutt reported.
In a positive sign for retailers, sales tax revenues in November rose 3%, marginally ahead of forecast. On a year-to-date basis, sales and use taxes total $921.8 million, an increase of $7.5 million or 0.8% from last year and $0.7 million or 0.1% above forecast.
Year-to-date individual income tax collections total $1.17 billion, $55.4 million or 5% above last year's collections and $12.2 million or 1.1% above forecast. Collections for individual withholding are up 6.2% from year ago levels.
Year-to-date corporate revenues total $139.1 million, a decrease of $0.8 million or 0.6% from the same period last year. Corporate income is below forecast by $1.1 million or 0.8%.
Among other economic indicators, the Institute for Supply Management's survey of states in the Midwestern section of the country shows signs of a slump in Arkansas.
The overall index for Arkansas dropped to 43.7 from October's 49.3, according to Creighton University economics professor Ernie Goss who supervises the survey.
The overall index ranges between 0 and 100. A figure greater than 50 indicates an expanding economy over the next three to six months.
During the national recession, December 2007 to June 2009, Arkansas lost almost 20,000 of its manufacturing jobs. Since the recovery began in July 2009 the state has regained only 1,200 of those jobs.
"Our surveys of businesses in Arkansas indicate the state's manufacturing employment will not return to pre-recession levels until beyond 2015," said Goss.
One unknown is how Arkansas' higher minimum wage, approved by voters Nov. 4, will affect the state's economy. Arkansas carries general obligation bond ratings of AA from Standard & Poor's and Aa1 from Moody's Investors Service, with stable outlooks.
