State Has One of the Best Problems Ever

[KenH]

State Has One of the Best Problems Ever

"If problems are inevitable, “disagreeing about what to do with excess money” is a good one to have.

That’s the situation where Arkansas policymakers find themselves as the state finished fiscal year 2023 on June 30 with a $1.161 billion general revenue surplus.

In other words, it collected that much more than it spent that year.

It was the third straight huge surplus. Last year’s record $1.628 billion was absurd. The surplus in fiscal year 2021 – $945 million – was more than double the previous record of $409 million in fiscal year 2007. Added together, the state has enjoyed $3.73 billion in surpluses the past three fiscal years.

What’s causing all this black ink? Obviously, COVID dollars have played a huge part. Billions of (borrowed from the future) federal dollars have flowed into Arkansas."

- rest of column at State has one of the best problems ever | Opinion | magnoliareporter.com

 

[Salty]

According to this link - Arkansas has a debt in excess of 20 billion dollars - and is increasing about $2,000 every minute.

 

[KenH]

According to this link - Arkansas has a debt in excess of 20 billion dollars - and is increasing about $2,000 every minute.

The article is about the yearly cash flow in Arkansas. I will reach out to the author of the article, who is a friend of mine who I met when I ran for Congress in 2014 when he interviewed me for an article, and we communicate via email pretty much every few days, and ask him about the debt you mentioned.

 

[Salty]

The article is about the yearly cash flow in Arkansas. I will reach out to the author of the article, who is a friend of mine who I met when I ran for Congress in 2014 when he interviewed me for an article, and we communicate via email pretty much every few days, and ask him about the debt you mentioned.

Thanks
One of my slogans is "I want to see all three sides of an issue"

 

[KenH]

Thanks
One of my slogans is "I want to see all three sides of an issue"

I heard back from the author of the column.

1) He was disappointed that the webpage you referenced did not provide any links as to where their calculations come from.

2) He is not aware of any debt obligations of the state of Arkansas that are not serviced by dedicated tax revenues.

Also, I looked around and, according to Forbes, in 2020, the state of Arkansas had $19.4 billion in assets and $7.9 billion in liabilities. States With The Most And Least Debt In 2020 (forbes.com)

 

[Deacon]

No worry, politicians will take care of that excess...

Here's what Pennsylvania did with their surplus.

2021 - Pennsylvania got $7B in federal stimulus money. How will state lawmakers, Wolf spend it?

2023 - The IFO projects deficits of $1.67 billion next year, followed by $2.4 billion in 2024–25, and exceeding $3 billion in the years following.

​

Rob

 

[KenH]

No worry, politicians will take care of that excess...

They are using a portion of the surplus to build a new prison to relieve overcrowding in county jails. Also, they have lowered the top rate some on the personal state income tax to try to be more competitive with Texas and Tennessee, which have no personal income tax.

Arkansas cannot deficit spend due to fiscal constraints. This is not Washington, D.C., with a printing press.