LITTLE ROCK, Ark. (AP) - Arkansas Gov. Mike Beebe is tapping into the state's reserve fund to pay for $41 million in cuts to the state's budget forecast for the year.
Arkansas Finance and Administration officials on Tuesday reduced their budget forecast for the year by $41 million after a drop in individual income tax collections in April.
Beebe's office announced that he will release money from a $40 million "rainy day" fund to ensure that there isn't a cut in state services because of the revenue drop. Most of the money will go toward the state's public schools.
This marks the third time Arkansas' budget has been cut over the past year. A total of $247 million has been cut from the state's budget forecast since the fiscal year began July 1.