Governor Beebe Authorizes Rainy Day Funds To Protect State Services

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Governor Beebe Authorizes Rainy Day Funds To Protect State Services

News - Local And Area News - Text

Wednesday, 05 May 2010 14:25

Tuesday, May 4, 2010

Governor_Beebe

LITTLE ROCK - Governor Mike Beebe has authorized the release of rainy-day funds and other fund transfers to protect state services after an unanticipated shortfall in April revenue. The anomaly in non-wage revenues, also appearing in other states around the country, has led the Arkansas Department of Finance and Administration to recommend a reduction in the FY2010 budget forecast of $41 million.

"Our overall economic trend remains positive, and if this anomaly had hit a few months ago, we might have been able to make up for it over time," Governor Beebe said. "However, with only two months left in the current fiscal year, we are going to move other money, including rainy-day funds, to prevent any potential cuts in state services. We set aside rainy-day money for this exact type of scenario."

To compensate for the $41 million reduction, $17.3 million will move to the public school fund unspent general revenue from the Education Facilities Partnership Fund. A reallocation of $6.3 million in federal reimbursements will prevent any reduction in Medicaid services. There will then be $17.4 million in rainy-day funds made available to other state agencies and to institutions of higher education to prevent any loss of services.

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