Gov. Mike Beebe, citing continued shortfalls in state revenues, has accepted a recommendation by the Arkansas Department of Finance & Administration to cut the state budget by an additional $106 million for the current fiscal year. That’s a 2.4 percent across-the-board budget reduction.
In October, Beebe announced he was cutting the state budget by $100 million because of revenue shortfalls.
The governor’s proposed balanced budget for fiscal 2011, which will be detailed by DF&A officials on Tuesday, anticipates a return to current budget levels on July 1, a press release from the governor’s office said.
“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.”
“Other education funds will be used to protect public education and adequacy requirements,” the release said. “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.”
Following a Monday press conference to announce a $10.5 million grant for the Winthrop P. Rockefeller Cancer Institute at the University of Arkansas for Medical Sciences in Little Rock, Beebe said the state would not be laying off any workers.
“We’ll hold off on filling any vacancies, and we won’t be filling a lot of positions as they come open,” he said. “That’s preferrable to laying off anyone.”