The Tolbert Report

As expect, Gov. Mike Beebe announced this morning that the current fiscal year budget will have to be cut by $106 million or 2.4 percent across the board.  Other education funds will be used to protect public education funding and rainy-day funds will offset the impact to the Department of Human Services, Correction, and Community Corrections.

“Arkansans are being increasingly cautious with their money, and our government must reflect that in our use of tax dollars,” Beebe said. “While we still foresee a recovery for our State economy, our spending must match the pace of that recovery to keep our budget balanced.”

Full release on the jump.

REVISED BUDGET FORECAST TO CUT STATE BUDGET FOR CURRENT FISCAL YEAR

LITTLE ROCK – Due to continued shortfalls in State revenues, Governor Mike Beebe has accepted a recommendation by the Arkansas Department of Finance and Administration to cut the state budget by an additional $106 million for the current fiscal year. The governor’s proposed balanced budget for Fiscal Year 2011, which will be detailed by DF&A officials on Tuesday, anticipates a return to current budget levels on July 1.

“Arkansans are being increasingly cautious with their money, and our government must reflect that in our use of tax dollars,” Beebe said. “While we still foresee a recovery for our State economy, our spending must match the pace of that recovery to keep our budget balanced.”

The revised forecast means a 2.4 percent budget reduction across-the-board. Other education funds will be used to protect public education and adequacy requirements. Rainy-day funds and other set-asides will be used to lessen the impact of the cuts for the Departments of Human Services, Correction and Community Corrections.