The 88th General Assembly
has convened the 2012 fiscal session

Tuesday, July 22, 2008

Budget process: executive recommendations

In today's Democrat Gazette, governor Beebe is asking each agency to prepare three different budgets. We're in that phase of the budget where agencies and departments are preparing their requests, and the governor will soon be reviewing these requests prior to making an executive recommendation. We'll convene for budget hearings in October, although the official revenue forecast won't be released until November.

The governor is asking each agency to prepare three budgets: one with no increase, one premised on modest growth in spending and another with 7% in cuts. Although the governor said through spokesman Matt DeCample yesterday that the “sole purpose” of the 7% reduction plan would be to prepare for a downturn in the economy, he also said that if it can be achieved in a fiscally responsible way, he plans to continue to eliminate some or all of the remaining sales tax on groceries. That was today's quote of the day in the Democrat Gazette.