From AP: Outgoing Arkansas Gov. Mike Beebe is warning lawmakers that state employees won't receive a pay raise next year and many state agencies will see their budgets reduced if some tax cuts approved last year take effect.
The two-term Democratic governor presented two budget proposals to lawmakers on Thursday, depending on whether they delay $29.4 million in tax cuts on capital gains and manufacturers set to take effect July 1, 2015. Beebe is leaving office in January due to term limits and is being succeeded by Republican Gov.-elect Asa Hutchinson.
Both budgets call for a nearly $51 million boost in funding for public schools and setting aside $65 million from the surplus to repair school buildings. Both budgets also call for increased funding for the state's prison system and Medicaid program.
