Date: May 22, 2025
Location: Arkansas Legislative Council Meeting
Dr. Carlos Silva of the Bureau of Legislative Research delivered the April 2025 General Revenue Report:
Gross General Revenues: $6.8 billion (📉 down $361.5M, or 5%)
Net General Revenues: $5.4 billion (📉 down $224.7M, or 3.9%)
🟡 Reason for decline: Primarily due to reduced corporate and individual income tax collections.
🧾 Additional Notes:
A large shift in forecast figures was mentioned, but it's now outdated due to a new forecast issued by DFA.
The drop was attributed to changes in corporate and individual tax timing—not a long-term loss, but a delay in receipts.
Jim Hudson, Secretary of the Department of Finance and Administration (DFA), elaborated:
Tax Filing Deadline Shift: Due to disaster declarations, Arkansas extended the tax deadline to July 31, 2025, which pushed payments into FY 2026.
This creates a temporary drop in FY 2025 revenue, not a loss—"just a timing issue."
A truer picture of FY revenue will emerge by August or September.
Revised Forecast Issued:
Statutorily required update issued May 21.
Projected revenues for FY 2026 and FY 2027 were lowered, based on macroeconomic trends.
Factors include:
Slowing GDP projections
Market uncertainty over tariffs, even though many have not yet taken effect
Analysts reduced forecasts due to global economic concerns, not current state economic conditions.
🗣️ Hudson emphasized potential upside for Arkansas agriculture if trade deals open more export markets.
Committee Fund Allocations for FY 2026 were approved.
Special funding requests approved:
$5,000 increase for the State Board of Chiropractic Examiners (via supplemental Peer Review item).
Discussion of DFA fine increases: A 156% spike in fines, penalties, and court costs was noted. DFA to investigate and report cause (unclear if due to enforcement changes or a few large cases).
Peer Review Committee: Approved temporary appropriations and American Rescue Plan / Infrastructure Act appropriations.
Review Subcommittee: Sent a controversial in-state contract with Aptus Financial to the Personnel Committee for further vetting.
Personnel Subcommittee: Reviewed compensation changes for the Department of Public Safety.
State Insurance Oversight: Approved formulary and drug policy updates for EBD.
Interim Study Proposal ISP 2025-004 was referred to the House Agriculture, Forestry, and Economic Development Committee.
Teacher and Public Employee Retirement System investment reports were filed as reviewed.
