NWAOnline’s Legislative Coverage

$118.2 million: That’s how much net available revenue will drop from the previous year for the current state fiscal year, which ends June 30, the state finance director just announced. This figure includes a revised, lower increase in revenues from the tobacco tax, which was raised earlier this year. The governor will recommend maintain existing budget priorities with the difference coming out of reserves. Will ask him more about that this afternoon; earlier, if possible.

All “A” and “A1″ categories in the current budget are funded, and about 53.9 percent of “B.”

Revenues for the next fiscal year are still expected to increase, but only barely: 0.6 percent in FY 2009 and 3.5 percent in FY 2010.

Arkansas outperformed other state economies for a long time but the national economic slowdown has caught up with us, according to the report.

A former budget director for the administration of Gov. Bill Clinton, Rep. Uvalde Lindsey of Fayetteville, called the revenue forecast for the next fiscal year “optimistic. It assumes a 1.2 percent drop in the GDP (national gross domestic product) while many forecasts expect a drop closer to 2 percent.”

Rep. Mark Martin, R-Prairie Grove, said the state may be glad the Legislature has its first fiscal session coming up in 2010, but that he doesn’t “think the sky is falling.”