The governor’s recommendation, announced earlier this year, provides the use of $40 million from accumulated and unused surplus to meet the state match for new federal highway funds. This transfer is designed to meet the 9/30/16 deadline so that the state will not lose available federal funding for Arkansas highways. If Arkansas Works does not pass then there will be substantial cuts in state services as a result of the budget hole in excess of $100 million. As a result, in addition to the cuts indicated by the House’s alternative budget released Monday, conservative budgeting will require the surplus funds to be retained for emergency needs of the state and to fill other gaps in budget shortfalls from prisons to education to foster care needs.
Governor Hutchinson issued the following statement:
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