Arkansas ends 2026 fiscal year with $655M general revenue surplus

LITTLE ROCK, AR. - The Arkansas Department of Finance and Administration announced that the state concluded Fiscal Year 2026 (FY26) with a general revenue surplus of $655 million. This figure represents the fifth-largest surplus in the state's history and a significant increase over the $367.9 million surplus recorded in 2025.

The surplus has been transferred into the General Revenue Allotment Reserve Fund, which consists of investment earnings and unrestricted surpluses from current and previous fiscal years.

Governor Sarah Huckabee Sanders attributed the financial success to the state's conservative economic policies. She noted that Arkansas managed to record these massive surpluses and increase state reserves even while reducing income taxes by 25%. The Governor stated that these results demonstrate the effectiveness of her administration's efforts to limit government growth and expand the economy.

Secretary of the Department of Finance and Administration, Jim Hudson, highlighted that strong collections in sales and personal income taxes indicate a robust economy for the state's residents. This momentum has pushed Arkansas' total reserves to record levels, exceeding $3 billion. The state's reserve funds are distributed as follows:

• Catastrophic Reserve Fund: $1.814 billion
• General Revenue Allotment Reserve: $1.221 billion
• Arkansas Reserve Fund Set Aside: $1.000 billion

Overall, Arkansas saw $8.686 billion in gross collections during FY26. The primary drivers of this revenue were individual income taxes, which generated $3.859 billion, and state sales and use taxes, which brought in $3.666 billion. After meeting all required payments, the state's net available total stood at $7.149 billion.

The state of Arkansas operates on a fiscal year that runs from July 1 through June 30.

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