Arkansas Lawmakers Prepare Budget: What it Means for Your Finances

The governor of Arkansas recently submitted a new budget proposal with cuts of $106 million for the state, following a $100 million budget cut last October. General revenue spending was reduced from $4.6 billion to $4.4 billion. With the slowdown in the global economy affecting everyone, states are not immune. Many states are cutting their spending and trimming budgets considerably, which means that there are not as many free programs and resources available. So how does this affect you?

Here are the following areas where cuts could affect you:

• The Public School Fund will be eliminating some of its programs, though lawmakers maintain that financial aid for local schools will not be cut as $6,023 will be allocated to each school student next year
• The Medicaid program will likely be affected, though it is a federal program and the state has no control over what happens there
• The health care reform currently being debated could allow another 200,000 to 250,000 people to become eligible for Medicaid.
• As state support of public programs declines, you may start to see cuts in the programs that you are active in

As Arkansas plans to tighten its belt in regards to spending, you should consider doing the same. Treat your personal budget as a priority and cut spending where you can. It’s important for you to start saving for financial emergencies and your retirement. A high yield savings account can help you plan for rainy days, and an Arkansas CD with a great rate is a safe way to realize real growth with your money.