Post by Logan on Feb 3, 2017 0:53:35 GMT -6
LITTLE ROCK — Arkansas Gov. Asa Hutchinson said Thursday he's asked several agencies to come up with contingency plans for potential budget cuts after finance officials said the state had collected $57 million less in revenue than had been forecast.
The Republican governor told reporters he's not ready to call for any budget cuts, but that he'll decide by March whether any changes are needed given the new concerns about the state's finances. The Department of Finance and Administration said the state's net available revenue in January totaled $535.9 million, which was $15.9 million less than in January 2016 and $47.1 million less what had been forecast for last month. The state's net revenue for the fiscal year, which began July 1, totals $3.1 billion.
"I do want to take the step to have contingency plans in the event this pattern continues and there's a problem the next month or the following month," Hutchinson said. "I don't want to wait until the last minute to have the agency directors start preparing in the event there is a reduction."
The programs affected by any budget cuts would be in the "B" category of the state's budget, which prioritizes funding based on expected revenue. The $127 million in that category isn't set to go toward the agencies until June, Hutchinson said. He said he didn't expect any layoffs from the potential cuts. The bulk of the money in the category goes toward the Department of Human Services, which was set to receive $88 million. Other agencies that were told to make plans include the departments of education and correction.
Read more: www.texarkanagazette.com/news/arkansas/story/2017/feb/03/hutchinson-tells-agencies-brace-possible-cuts/660004/
The Republican governor told reporters he's not ready to call for any budget cuts, but that he'll decide by March whether any changes are needed given the new concerns about the state's finances. The Department of Finance and Administration said the state's net available revenue in January totaled $535.9 million, which was $15.9 million less than in January 2016 and $47.1 million less what had been forecast for last month. The state's net revenue for the fiscal year, which began July 1, totals $3.1 billion.
"I do want to take the step to have contingency plans in the event this pattern continues and there's a problem the next month or the following month," Hutchinson said. "I don't want to wait until the last minute to have the agency directors start preparing in the event there is a reduction."
The programs affected by any budget cuts would be in the "B" category of the state's budget, which prioritizes funding based on expected revenue. The $127 million in that category isn't set to go toward the agencies until June, Hutchinson said. He said he didn't expect any layoffs from the potential cuts. The bulk of the money in the category goes toward the Department of Human Services, which was set to receive $88 million. Other agencies that were told to make plans include the departments of education and correction.
Read more: www.texarkanagazette.com/news/arkansas/story/2017/feb/03/hutchinson-tells-agencies-brace-possible-cuts/660004/