Arkansas CFO states budget looks good to fund top RSA categories

COLA mentioned in front page story of Democrat-Gazette. Chief Fiscal Officer, Richard Weiss says “state’s revenue forecast for fiscal 2014 envisions enough money to fully fund categories A and B (COLA).”

How does the Revenue Stabilization Process work?

The Revenue Stabilization Act process, enacted in 1945, assists with prioritizing state revenue spending. The Act was put into place to ensure that state programs and agencies are not over-funded or under-funded. Revenue spending is prioritized into categories A, B and C.

  • Category A includes education, correction, public health and human services
  • Category B includes cost-of-living adjustments for state employees and agency programs as well as expansion of human services programs
  • Category C includes new programs requested by agencies and the legislature

Funding goes to category A, B and then C. If cuts are made then those cuts are from category C, B and then A. The two percent cost of living adjustment will be effective July 1, 2013.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s