Arkansas state budget
From Sunshine Review
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Arkansas weathered the 2009 state budget storm better than most states due to its conservative budgeting system. FY 2010’s $4.6 billion budget estimated a $75 million deficit to be filled by Arkansas’ recently established “rainy day” fund.[1] The Arkansas State Legislature set aside $100 million of surplus to cover FY 2010.[2] 54% of the state’s revenue is from income taxes and 38% from sales/use taxes. 42% ($1.9 billion) of state spending is on public schools, 25% ($1.1 billion) on health/human services, and 16% ($730 million) on higher education.[3]
FY 2010 forecasts and collections were on track until September of 2009 when collections took an unanticipated drop. Gov. Mike Beebe announced October 2, 2009 September’s figures showed a $55.8 million gap below estimated revenues. Gov. Beebe said spending level cuts will be made accordingly and asked state finance officials whether the revenue forecast for the current fiscal year should be revised down.[4]
[edit] 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. This innovative model has been credited with keeping the state’s budget deficits low and manageable during difficult times.[5]
Arkansas voters approved November 4, 2008 a constitutional amendment for annual legislative sessions and appropriations no longer than 1 fiscal year effective in 2009.[6] Previously, Arkansas’ legislature met and budgeted on a biennial basis.
The budget schedule requires the Governor to submit his 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.[7]
See Arkansas state budget (2008-2009) for more information.
[edit] Accounting Principles
The Arkansas Division of Legislative Audit is responsible under the Legislative Joint Audit Committee (A.C.A. 10-3-407)[8] for independent auditing of state and local entities. The Legislative Joint Audit Committee meets monthly and is composed of:
- 16 Senators
- 20 Representatives
- Ex-officio officers:
- Speaker of the House
- President Pro Tempore of the Senate
- Immediate past Co-Chairmen of the Legislative Joint Auditing Committee
- Co-Chairmen of Legislative Council
- Vice Co-Chairmen of Legislative Council
Roger A. Norman is Legislative Auditor. Audit reports are published on the division’s Web site.[9]
| Credit Rating | Fitch | Moody's | S&P |
| Arkansas[10] | NR | Aa2 | AA |
The Institute for Truth in Accounting (IFTA) rates 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 does 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 does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[11] Arkansas’ Department of Finance and Administration, Office of Accounting is responsible for filing the CAFR. Richard Weiss is the Director of Finance and Administration.[12]
Arkansas currently has no statewide, official spending database online. However, the Department of Finance and Administration has created a statewide contracts procurement Web site.
[edit] Economic Stimulus Package
Arkansas is expected to receive approximately $2.1 billion from the $787 billion economic stimulus package, or the American Recovery and Reinvestment Plan. According to White House officials the stimulus bill is estimated to create or save 31,000 jobs.[13] Gov. Beebe said that a state run website is being created to track Arkansas' use of the federal stimulus money. "This is your money — and your leaders should be held accountable for how it is managed," he said. [14]
According to preliminary reports Arkansas is expected to receive:[15] [16]
- $325.5 million for state infrastructure projects
- $26 million is directed to transportation-enhancement projects and metropolitan planning projects
- $117.7 million is obligated to "shovel-ready projects"
- $7 million for Head Start
- $1 million for the national school lunch program
- $444 million for Kindergarten through 12th grade school modernization, renovation or repair
- $857,000 for senior meal programs
- $39.2 million to fund state government energy technology research and development programs
- $730 million for Medicaid
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[17][18]
Arkansas’ 6th District received more than $360,000 from the stimulus package, according to ARRP's tracking website. However that District has not existed since 1963. In total, the website shows it send money to 9 fake Districts.[19]
[edit] Budget transparency
Arkansas currently has no statewide, official spending database online. However, the Department of Finance and Administration has created a statewide contracts procurement Web site.
HB 1053, known as "The Open Checkbooks in Government Act" would have created an online database of state expenditures. Unfortunately, HB 1053 died in committee.[20] "See proposed changes to Arkansas FOIA for more information.
[edit] Legislation
None.
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[21]
- Arkansas will receive an estimated $2.1 billion. [13]
- The economic recovery website to show how legislators and government officials in Arkansas are spending Federal funds is available here.
[edit] Independent transparency sites
None.
[edit] Public employee salary information
None.
[edit] See Also
Arkansas taxpayer-funded lobbying
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Arkansas Policy Foundation
- Arkansas Department of Finance and Administration
- Arkansas Government spending
[edit] References
- ↑ Arkansas State Legislature, “Summary of Fiscal Legislation 2009,” May 6, 2009
- ↑ Arkansas Business, “Beebe Says Arkansas Will Live Within Its Means As Revenue Goes $55 Million Below Forecast,” October 2, 2009
- ↑ Arkansas State Legislature, “Summary of Fiscal Legislation 2009,” May 6, 2009
- ↑ Arkansas Business, “Beebe Says Arkansas Will Live Within Its Means As Revenue Goes $55 Million Below Forecast,” October 2, 2009
- ↑ Arkansas Business, “1945 Act keeps State's budget consistent,” January 19, 2009
- ↑ Arkansas Bureau of Legislative Research, “Arkansas Budget & Appropriations Process 2008”
- ↑ National Association of State Budget Officers, “2008 Budget Processes in the States”
- ↑ Arkansas Legislative Joint Audit Committee Web site, retrieved October 9, 2009
- ↑ Arkansas Division of Legislative Audit Web site, retrieved October 9, 2009
- ↑ California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings”
- ↑ [(http://truthinaccounting.org/news/listing_article.asp?section=451§ion2=451&CatID=3&ArticleSource=567 Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35]
- ↑ Arkansas DFE, "Organizational Chart"
- ↑ 13.0 13.1 Associated Press,"Stimulus estimates for Arkansas range from $2.1 billion to $4 billion," February 23,2009
- ↑ Baxter Bulletin,"Gov. Mike Beebe:Web site to track stimulus money," February 28,2009
- ↑ Associated Press,"Arkansas to get $351.5 million for infrastructure," February 25,2009
- ↑ Arkansas Matters,"Arkansas' Share of Stimulus Package," February 23,2009
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Arkansas, Watchdog.org, November 17, 2009
- ↑ Arkansas Legislature, Status of HB 1053
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
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