Governor tells state agencies cuts could be coming with budget shortfall | Arkansas Blog

Thursday, February 2, 2017

Governor tells state agencies cuts could be coming with budget shortfall

Posted By on Thu, Feb 2, 2017 at 4:28 PM

click to enlarge HUTCHINSON: Full-speed ahead with tax cuts despite major budget shortfall. - BRIAN CHILSON
  • Brian Chilson
  • HUTCHINSON: Full-speed ahead with tax cuts despite major budget shortfall.
Governor Hutchinson told reporters today that he's asking several agencies to prepare for the possibility of budget cuts, the AP reports, including Human Services, Education, and Corrections.

This comes in response to today's announcement that seven months into the fiscal year, the state's net available revenue is below forecast by $57.1 million. Hutchinson will make a decision on whether to make budget changes in a few months. Of course, Hutchinson also just signed a $50-million tax cut, although that won't go into effect for a few years.

Also worth noting: the governor's highway plan, enacted last year, is heavily dependent on surplus dollars (it allocates a quarter of surplus funds toward highways, which the governor had estimated amounted to $48 million per year). Again, currently the state is $57 million in the hole seven months in. Hmm.

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