Gov. Mike Beebe has decided to postpone a decision on whether to restore any money previously cut from the state budget, citing uncertainty about the impact of today’s stock market plunge.
On Friday Beebe said he would consider over the weekend whether a jump in state revenues would allow the state to restore any of the $107 million that state finance officials cut from the budget at the start of the current fiscal year. This afternoon, Beebe said concern about the national economy prompted him to delay making a decision.
“Things have gone south today in New York and across the world. The Dow is down over 600 now. It’s below 10,000 for the first time since, what, 2003 I guess it is. … We want to watch that for a day or two,” Beebe said during a luncheon address to the Arkansas Association of Public Universities.
By 3:10 p.m., the Dow Jones Industrial Average had rebounded somewhat and was down 370 points.
Higher education was one of the areas hardest hit by this year’s budget cuts. Beebe offered his assurance that restorations will happen if the economy allows.
“If what’s happened today is not long-term and does not directly affect the progress that we’re currently making in Arkansas, you can rest assured we will, as quickly as we reasonably can, make some partial restorations,” he said.

Tags: Mike Beebe, state budget, stock market

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