ARKANSAS, USA — Arkansas’ tax revenue is beating forecasts and the jobs picture is improving despite an economy weighed down by COVID-19.
But the consensus among economists is the pace of recovery could slow – or shift into reverse – without a second federal stimulus.
As Gov. Asa Hutchinson is often quick to note, Arkansas’ economy is in better shape than most states and did not hit the forecast lows.
Tax collections during the first quarter (July-September) of the fiscal year provided $158.8 million more in available revenue than expected.
The gross general revenue was $1.993 billion, up 17.7% compared to the same period in 2019, and up 11.6% above the budget forecast, according to an Oct. 2 report from the Arkansas Department of Finance and Administration (DFA).
Sales and use tax revenue – an indicator of consumer spending – during the first quarter was $703.9 million, up 10.3% compared with the same period in 2019 and up 11.4% above budget forecast.
The number of employed in Arkansas during August was an estimated 1,244,400, down 69,085 jobs, or 5.3% lower, compared with August 2019, according to numbers posted Sept. 18 by the U.S. Bureau of Labor Statistics.
The August number was up 31,763 jobs compared with July. However, Arkansans without jobs in August totaled 99,432, up 104.7% from the 48,570 in August 2019, and up 6.9% from the 92,976 unemployed in July.
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