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Arkansas state budget (2010-2011)

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Note: This article was last updated in 2011. Click here for more recent information on state budgets and finances.


Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government online.[1]

2011 State spending & deficit in billions[2]
Total spending Human services Education Transport Other
$27.1 $7.4 $10 $1.6 8.1
2011 Local spending & deficit in billions[3]
Total spending Pension Healthcare Education Welfare Protection Transport Debt
$9.83 $0.04 $0.22 $4.85 $0.19 $0.96 $0.62 $10.7

Arkansas's state budget for FY2011 was $4.5 billion and it became law on Feb. 26, 2010.[4] Arkansas was one of only four states in the U.S. to enter fiscal year 2011 without an official deficit.[5] Governor Mike Beebe said “conservative budgeting and cautious spending had put Arkansas in an advantageous position.”[6]

Over the five-year period leading up to the 2011 fiscal year, Arkansas state government grew by an average of about 7%. The biggest year of growth was for fiscal year 2005 when the state budget grew by 10.88%.[7]

The state met its $4.4 billion budget for FY2010 with $23.7 million left over, according to the state's fiscal office, and did so by tapping its newly established “rainy day” fund, using unspent educational facilities funds, and making $206 million in budget cuts.[6] The state budget for FY2011 was $4.4 billion.[6]

Arkansas had a total state debt of $7,899,579,400 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap.[8]

Arkansas collected more taxes than predicted in July 2010, the first month of the fiscal year.[9] The state Department of Finance and Administration said that Arkansas' net available general revenues totaled $370.6 million in July. Individual income tax collections totaled $181.2 million, which was $7.4 million above the previous year and $3.4 million above forecast; sales tax collections totaled $188.3 million, which was $15.4 million above the previous year and $4.9 million above forecast; corporate taxes were also up.[9]

FY2010 state budget

Arkansas' fiscal office reported that the state met its $4.4 billion budget for fiscal 2010 with $23.7 million left over.[6] In FY2010, gross tax collections totaled $5.43 billion, a decrease of $130.7 million, which was 2.4% less than the previous year.[5]

Arkansas' unemployment rate increased to 7.7% in December 2009, a three-tenths of a percentage increase from November. Compared to December 2008, Arkansas saw a 2% increase in 2009. The national unemployment rate for December was 10%.[10]

FY 2010’s $4.6 billion budget estimated a $75 million deficit to be filled by Arkansas’ recently established “rainy day” fund.[11] The Arkansas State Legislature set aside $100 million of surplus to cover FY 2010. Fifty-four percent of the state’s revenue was from income taxes and 38% from sales/use taxes. 42% ($1.9 billion) of state spending was on public schools, 25% ($1.1 billion) on health/human services, and 16% ($730 million) on higher education.[11]


Budget background

Arkansas’ Revenue Stabilization Law (Act 311 of 1945) requires the state to designate budget funding to be prioritized into 3 categories: A, B-1, and B. FY 2010 budget funded all A-level budgets 100% with partial funding for B-level budgets at 54%. New programs must start in the B category.[12]

On November 4, 2008, Arkansas voters approved a constitutional amendment for annual legislative sessions and appropriations no longer than 1 fiscal year effective in 2009.[13] Previously, Arkansas’ legislature met and budgeted on a biennial basis. The annual budget began in FY2010.[14]

The budget schedule requires the Governor to submit their budget to the Legislature in November before they convene. The Legislature meets January to April (January 12 to May 1 in 2009) and needs a three-fourths majority to pass the budget. The fiscal year begins July 1st and ends June 30th.[15]

See Arkansas state budget (2008-2009) for more information.

Accounting principles

The Arkansas Division of Legislative Audit was responsible under the Legislative Joint Audit Committee (A.C.A. 10-3-407)[16] for independent auditing of state and local entities.[17]

Roger A. Norman was Legislative Auditor. Audit reports were published on the division’s Web site.[18]

Credit Rating Fitch Moody's S&P
Arkansas[19] NR Aa2 AA

The Institute for Truth in Accounting (IFTA) rated Arkansas “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Arizona’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[20] Arkansas’ Department of Finance and Administration, Office of Accounting was responsible for filing the CAFR. Richard Weiss was the Director of Finance and Administration.[21]

Arkansas had no statewide, official spending database online. However, the Department of Finance and Administration had created a statewide contracts procurement Web site.

See also

Footnotes

  1. ↑ 2011 CAFR
  2. ↑ State of Arkansas, Appropriation Summary
  3. ↑ USA Spending, State Guesstimated* Government Spending
  4. ↑ Arkansas News "Beebe signs lottery scholarships, budget spending bills" Feb. 26, 2010
  5. ↑ 5.0 5.1 The City Wire "Arkansas' budget issues less severe than most states" August 2, 2010
  6. ↑ 6.0 6.1 6.2 6.3 "State ends year with $23 million surplus" July 2, 2010 Cite error: Invalid <ref> tag; name "ends" defined multiple times with different content
  7. ↑ Arkansas News "Does the state budget need a diet?" March 14, 2010
  8. ↑ State Budget Solutions “States Hide Trillions in Debt” July 22, 2010
  9. ↑ 9.0 9.1 Businessweek "Ark. revenues begin fiscal year above predictions" August 4, 2010
  10. ↑ Arkansas News, "State unemployment rises," January 24, 2010
  11. ↑ 11.0 11.1 Arkansas State Legislature, “Summary of Fiscal Legislation 2009,” May 6, 2009
  12. ↑ Arkansas Business, “1945 Act keeps State's budget consistent,” January 19, 2009
  13. ↑ Arkansas Bureau of Legislative Research, “Arkansas Budget & Appropriations Process 2008” (PPT)
  14. ↑ National Conference of State Legislators "Annual and Biennial Budgeting: The Experience of State Governments"
  15. ↑ National Association of State Budget Officers, “2008 Budget Processes in the States” (dead link)
  16. ↑ Arkansas Legislative Joint Audit Committee Web site, accessed October 9, 2009
  17. ↑ The Arkansas Division of Legislative Audit
  18. ↑ Arkansas Division of Legislative Audit Web site, accessed October 9, 2009
  19. ↑ California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings”
  20. ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  21. ↑ Arkansas DFE, "Organizational Chart"
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