2007-08 fiscal year figures are in: $176.5 million surplus

At $176.5 million, the surplus accumulated in the fiscal year that ended Monday was $81.7 million higher than forecast. Here's the full story from the Associated Press, and here's a comment from the governor's office:

"Even though Arkansans are struggling with skyrocketing fuel prices and other increasing expenses, our State's economy continues to show signs of strength in spite of the national downward trend. Our conservative budgeting and careful planning have put Arkansas in an advantageous economic position compared to many other states. Because our national economy still faces daunting challenges, I remain alert to the potential for additional downturns in the coming months.

"If we continue to hold steady in the next two-to-three months, we will consider revising our economic forecast upward and restoring at least some of the funding that our state agencies have been asked to do without in the new fiscal year." – Governor Mike Beebe

My comment: Even with other states working to bridge budget shortfalls, and even with a full year without one half of the revenue from the sales tax on groceries, we've built a surplus of $176.5 million. I believe that shows that a full repeal of the other half of the sales tax on groceries (estimated at $120 million annually) would be reasonable and prudent, and it won't break the bank.

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