Fiscal Year 2005
Revenue From All Sources
$13,652.26 (Millions)
All revenue categories are reported on the modified accrual basis of accounting, except enterprise, which is reported on the full accrual basis.
Personal and Corporate Income Tax- revenues collected from citizens and corporate entities based upon their taxable income as defined by the Internal Revenue Service and Arkansas law. Revenue collected is distributed to state agencies in accordance with the Revenue Stabilization Act and used to provide programs and services.
Consumer Sales Tax– revenues collected from consumers on the purchases of goods and services, as proscribed by Arkansas law. This revenue is also distributed to state agencies in accordance with the Revenue Stabilization Act.
Gas and Motor Carrier Tax – special levies on the purchase of motor fuels and certain vehicle related transactions. This revenue is used to fund the Arkansas Highway and Transportation Department.
Other Taxes – all other tax revenues. Examples include cigarette and soft drink tax revenue.
Intergovernmental – predominately federal revenue used to fund federally mandated programs or to support federal grants. Most federal funds utilized in Arkansas are matched by State funds in order to maximize resources.
Other Revenues– revenues collected through the sale of licenses, fees, permits, goods, services, investment income, fines and other items. The revenue is collected for the operation of specific State Agencies or programs.
Enterprise Funds – revenue generated from all sources by State Agencies classified as Enterprise Funds. Activities of the Workers' Compensation Commission, Employment Security Department and the State's Institutions of Higher Education are examples of such funds because a substantial amount of revenues is generated from user fees charged to external parties.
Fiscal Year 2005
General Revenue Funds Distribution
$4,300.3 (Millions)
Did you know 89¢ of every general revenue tax dollar is spent on education, health, and human services?
- Almost one fourth of our state’s 2.5 million citizens access the state’s education system. There are over 449,000 public school children in kindergarten through grade 12. Arkansas higher education enrollment exceeded 100,000 students for the fifth consecutive year. Another 33,000 students are served through vocational workforce education initiatives.
- Included in the distribution of general revenues are funds earmarked for education, particularly for K - 12 students. The Educational Excellence Trust Fund established in 1987 and the Educational Adequacy Fund established in 2004, both provide specific revenue streams to insure adequacy and equity in funding for the state's education system.
- One out of every six Arkansans is eligible to receive assistance from at least one of two major economic and medical assistance programs: Medicaid and Temporary Assistance for Needy Families (TANF). A TANF program meeting federal requirements to move citizens from welfare to work is a priority of the current Administration
. -Arkansas' criminal justice agencies include State Police, Crime Laboratory, Crime Information Center, correctional institutions, and innovative community correction and supervision programs.
- The remainder of each tax dollar goes to fund budgets in areas such as industrial development, environmental activities, and parks and tourism.
Fiscal Year 2005
General Revenue Funds Gross Collections
$5,054.0 (Millions)
Did you know Arkansas has a Revenue Stabilization Law, which prevents deficit spending?
- Arkansas’ two largest sources of general revenue are collected from a 6% state sales/use tax and from the Arkansas individual income tax.
- Arkansas’ income tax rate ranges from a low of 1% to a top rate of 7%, averaging 4.4% per individual. The current administration led efforts to enact legislation providing tax relief for Arkansans through personal property tax reform and income tax relief.
- Other general revenue sources include: taxes on alcohol and tobacco products; pari-mutuel betting on horse and dog racing; severance taxes on oil, minerals, gravel, and natural gas; corporate franchises and corporate income; estates; and real estate transfers.
- Arkansas voters approved Amendment 75 to the Arkansas Constitution, increasing the state sales/use tax by 1/8th cent to provide money for the state’s parks, heritage, and game and fish programs as well as the Keep Arkansas Beautiful program.
- The State of Arkansas is noted for its strong fiscal restraint. The Arkansas state budget must be balanced. Deficits are specifically prohibited by law. Tax collections are constantly monitored and government expenditures closely reviewed, and revised when necessary.
Did you Know the State of Arkansas
ranks 46th in the nation in per capita state and local taxes and 49th in the nation in property taxes per capita.
has experienced steady employment growth averaging 1.3% or 13,930 new jobs per year over the past ten years, bringing total payroll employment to 1,165,592 jobs.
since July of 1997, the Transitional Employment Assistance program has reduced welfare caseloads by 61%. In December, 2005 48% of all case closures were due to employment.
has 112 “Fortune 500” companies led by Wal-Mart Stores which has annual sales exceeding $244.5 billion. The State’s manufacturing base is highly diversified, and is growing in high tech businesses such as information technology, telecommunications, and biotechnology.
grows practically every crop produced in the U.S. and is a leader in the production of rice, soybeans, eggs, and livestock.
has an award winning Smart Core Program for its public schools and is one of only 14 states awarded grants from the U.S. Department of Education to upgrade data systems deemed models for the nation.
earned the fourth highest grade in the nation for improving teacher quality from Education Week Newspaper's 2006 Quality Counts issue.
owns 52,591 acres through the statewide parks system encompassing 52 state parks and museums, and owns 361,052 acres through the Game & Fish Commission.
has 16,419 miles of highways and 7,092 bridges to maintain and preserve.
in any given month, helps more than 619,900 Arkansans to access medical care through the Medicaid program.
has more than 99% of the population living within 40 miles of a public college or institution of higher education.
has more than 63% of its high school graduates continuing on to college.
