The Little Rock City Board will meet at noon today to consider Mayor Frank Scott Jr.’s recommendation to cut the city’s $212 million 2020 budget by 2 percent to accommodate expected revenue declines due to coronavirus.
The city’s major revenue source — the sales tax — is expected to take a hit from the decline in economic activity at hotels, restaurants and virtually every other source. The revenue arrives on a delayed basis, so the city won’t have a true sense of the loss for at least another month.
Here’s the full outline of the cuts. It notes further adjustments are likely as the crisis continues to unfold.
The cuts include furlough of part-time workers and trims of allocations to the Arkansas Arts Center, Museum of Discovery and the Downtown Partnership. Noted: No cut is proposed in the annual outlay that subsidizes salaries of executives at the Little Rock Regional Chamber of Commerce.
1. Adjust General Fund Personnel Expenditures: General Fund expenditures will be reduced for part-time personnel who are deemed non-essential for a period of 120 days due to the temporary closure of facilities or programs. Part-Time Personnel ($513,758) Net Decrease to General Fund ($513,758) Revenues
2. Adjust the General Fund for reductions to operating expenditures and Outside Agency contributions for a period of 120 days: Departmental Expenditures: Executive Administration: Outside Agency Contributions Arkansas Arts Center ($233,333) Museum of Discovery (64,000) Downtown Partnership (48,333) (345,666) Parks & Recreation Department: Summer Playground Program (148,000) Net Decrease to General Fund ($493,666) Expenditures
3. Adjust General Fund Transfers Out for Reductions to Special Project Allocations: Allocations for Special Projects will be reduced for programs that will not occur due to closures and cancellations associated with the COVID-19 Pandemic. Transfers Out: Children Youth & Families (CYF): Summer Employment Program ($1,362,082) Suspend CYF Contracts – 120 Days (1,073,334) 3 BACKGROUND CONTINUED Summer Academic – Recreation (300,000) Summer Playground Program (70,705) Subtotal – Children, Youth & Families (2,806,121) Other Special Projects: Legislative Consulting (45,000) Curran Hall (25,000) Little Rock Tennis Open (25,000) Sustainability Summit (20,000) Subtotal – Other Special Projects (115,000) Net Decrease to General Fund ($2,921,121) Transfers Out – Special Projects
4. Adjust the General Fund Transfers Out – Contingency Fund. Transfers Out: Contingency Allocation ($1,000,000) Net Decrease to General Fund ($1,000,000)