The Arkansas Department of Finance and Administration (DFA) has increased the state’s Official General Revenue Forecast for Fiscal Years 2026 and 2027 following stronger-than-expected tax collections across the state.
According to Cabinet Secretary James Hudson, FY 2026 net available revenues are now projected to reach $7.08 billion, an increase of more than $251 million over the January forecast.
The Arkansas Department of Finance and Administration (DFA) reported year-to-date net available revenues have increased by $404.7 million, or 7.4 percent, compared to the same period last year. Individual income taxes, corporate income taxes, and sales tax collections all exceeded expectations.
Officials said one-time factors also boosted collections, including delayed tax filing deadlines caused by severe weather relief efforts and tax withholdings tied to major Powerball jackpot winnings.
For FY 2027, the state projects net available revenues of approximately $7.09 billion with an expected surplus of nearly $390 million.
State economists said slower economic growth and rising unemployment remain concerns moving forward, but Arkansas economic growth is still expected to slightly outpace the national average over the next 2 fiscal years.
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