Managing the Budget in Good Times and Bad

Managing the Budget in Good Times and Bad

NCSL Spring ForumApril 24, 2009

Speaker Robbie WillsArkansas House of Representatives

THE ARKANSAS BUDGET PROCESS

Authorization

AN APPROPRIATION GIVES THE AGENCY THE AUTHORITY TO SPEND MONEY IF AND WHEN IT BECOMES

AVAILABLE.

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The Arkansas Budget Process

Funding

TOTAL STATE REVENUEFY 08

General Revenue $ 5,618,456,330

Special Revenue 1,691,902,903

Cash Funds 3,748,891,979

Federal Funds 4,246,431,485

Trust & Other Non Revenue 2,732,221,175

TOTAL STATE REVENUE $18,037,903,873

Insurance2%

Income Taxes56%

Sales/Use38%

Other1%

Luxury3%

GENERAL REVENUE - 2008$5.6 Billion

Property Tax Relief14%

Finance6%

Natural Resources

3%

Highway Users37%

Game & Fish5%

Other35%

SPECIAL REVENUE - 2008$1.7 Billion

SPENDING IS LIMITED BY THE AVAILABLE APPROPRIATION OR THE AVAILABLE MONEY - WHICHEVER IS

LESS!

A Program must have both an appropriation

and a means of getting money to it. If one or the other is

missing, the program cannot exist.

3 1 1 1 9 4 5AC T o f

The Revenue

S tab iliza tionLaw

Revenue Stabilization Law

Revenue Flow

Pre-2001

Revenue Stabilization Law

Revenue Flow

FY 2002-03

Revenue Stabilization Law

Revenue Flow

FY 2006-Present

Speaker Robbie Wills (501) 682-7771

willsr@arkleg.state.ar.uswww.robbiewills.com