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all the way down to county levels. Te federal budget is comprised of three main categories:
discretionary, mandatory and interest payments. With mandatory spending and interest payments largely inflexible, it is obvious that in order to cut the federal budget, discretionary spending is the target. Te bad news for us is that most aid given to counties comes directly from this discretionary spending sector.
Tanks to the efforts of the National Association of Counties
(NACo), along with Arkansas county elected officials and AAC staff, programs such as PILT (Pay- ment in Lieu of Taxes) and Secure Rural Schools Funding will likely remain intact, although funding may drop off as much as 40 per- cent, possibly more. Grant dollars for everything from security to community development block grants are evaporating quickly. Funds given to states to help with Medicaid and other programs are fading, putting incredible pressure on states to come up with their own sources of revenue to con- tinue the programs.
Shifting money at a state level to supplement some of these ex- pected cuts means no growth or cuts in other areas that fund coun- ties. Suffice it to say that the belt is being tightened all around. Falling or stagnant property tax revenues are also hitting us directly, not to mention month after month of lower sales tax collections. Although we’ve taken some knocks, the news is not all bad.
“A T I
Arkansas is positioned very well to handle these stressors. In- stead of cutting areas to make up for federal losses, the leadership in Arkansas has exhibited great fiscal responsibility. Growth in state revenue is going to shore up these new costs. Our balanced budget puts us in a group of only a handful of states that are not drowning in red ink. Te credit goes to Gov. Mike Beebe, respon- sible legislators and competent state fiscal staff that carefully and closely inspect our budget and any proposed shifts.
Arkansans have a great tradition of resiliency. Our ability to handle adverse conditions has kept us in the proper frame of mind. County officials recognize that we may very well be through the hardest part of this downturn. Sales tax revenues for the state (and counties) are beginning to see an uptick, small though it may be. And having already been through some govern-
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ment shrinkage, we find ourselves preparing for, instead of react- ing to, revenue shortfalls.
Property values in Arkansas have stabilized, with some areas seeing increases. Tis primary source of revenue for our county government has been hit in recent years. As the nation pulls out of the economic doldrums, we can expect a slow but steady climb for these figures.
nother fresh new year is here . . Another year to live!
To banish worry, doubt, and fear, To love and laugh and give!
To daily grow and try to be My highest and my best!
have the opportunity Once more to right some wrongs,
To pray for peace, to plant a tree, And sing more joyful songs!
” William Arthur Ward, American Scholar
his bright new year is given me To live each day with zest . . .
Te Association of Arkansas Counties is hard at work prevent- ing cuts from the state. Te staff here is watching both the 2012 fiscal session and the 2013 general session closely as we work to pre- vent unfunded mandates and cuts that directly impact counties.
If there is one thing I have learned over time, it is that the key to understanding county government is to know that we are the people who relay good or bad news directly to the citizenry. Neither state nor federal govern- ment officials have to look across the table and deliver the volume of news to constituents like we do.
I believe that 2012 will have its
share of struggles, and county of- ficials will sometimes have to give bad news that is trickling down to us. But as I look ahead, I also find great opportunity as the economy slowly turns around.
So many things about 2012 will be out of our control -- the
economy, the Mayan calendar, natural disasters and elections to name a few -- but what gains the respect from people statewide for our counties is outlook and attitude. As we plan ahead for the new year, there is no doubt that in the counties there is unbridled optimism and cheery attitude as we do what we do – helping people. To that end, I wish all of you a wonderful 2012. Let’s smile, laugh, live zestfully and win victories together!
Chris Villines Chris Villines
AAC Executive Director COUNTY LINES, WINTER 2012
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