An unexpected rise in state revenue will enable an increase in state spending in the final two months of this fiscal year, which ends June 30, Gov. Mike Beebe has announced.
Pursuant to the Arkansas Revenue Stabilization Act, Governor Beebe today announced an increase in the general-revenue forecast for the last two months of Fiscal Year 2012, which ends June 30.
This adjustment means that an additional $39.4 million will flow into the budget, fully funding Category "B" of the Revenue Stabilization Act. This includes $10 million in "rainy-day" money to help with unforeseen costs in the coming months, as well as additional support for Medicaid, higher-education institutions and some state agencies.
Department of Finance and Administration reports show a continued positive trend in collections, especially in individual and corporate tax receipts. Beebe met with leaders of both parties in the Arkansas General Assembly before adjusting the revenue forecast.
The forecast for Fiscal Year 2013, which begins July 1, will not change.