A gathering storm | Arkansas Blog

Tuesday, August 25, 2009

A gathering storm

Posted By on Tue, Aug 25, 2009 at 6:44 AM

We've seen this in Pulaski County, too, but the trend couldn't be better illustrated than here:

Sales tax revenue has declined sharply in every major city in Northwest Arkansas this year. In Bentonville, the drop from June 2008 to June 2009 was a whopping 22.9 percent.

There will be consequences everywhere -- cuts in spending (services) and maybe a search for fee and tax increases. (Property taxes aren't exactly robust given the housing decline.) The local government lobbies will turn out for the first fiscal session of the legislature in January with hats in hand, but the state isn't likely to have coins to toss in those hats.

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