Storm clouds could be brewing over Arkansas’ economy, according to Gov. Mike Beebe.

Beebe said today he believes the state needs a rainy day fund to prepare for possible economic hard times.

“We are looking at a forecast where it looks like we are going to be hit by the national economy,” Beebe said on his monthly call-in program on the Arkansas Radio Network.

“If we are hit by the national economy, if you don’t have a rainy day fund, if you don’t have some of that money accumulated and put back to be able to meet essential services, whether it’s keeping prisoners in the prison, whether it’s keeping folks in the nursing home or whether it’s paying for colleges and universities, then you’ve got to do one of two things: You’ve either got to raise taxes or conversely you’ve got to cut those services out, because we can’t have a deficit,” Beebe said.

The state constitution requires that state expenditures not exceed revenues. Beebe is scheduled to present his balanced budget proposal on Nov. 13.

Tags: Mike Beebe, state budget

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