Beebe moves away from reserve fund plan

By The Associated Press

A spokesman says Gov. Mike Beebe is moving away from his plan to create a $34.5 million balanced budget reserve fund Beebe would control in favor of a proposal giving lawmakers more direction over the money.

Beebe’s office said Tuesday the governor has shifted his attention toward placing $34.5 million in a lower category of the state’s proposed Revenue Stabilization Act. The act sets the state’s spending priorities based on expected revenues.

Beebe spokesman Matt DeCample says that approach would help the state restore $206 million in budget cuts made over the past year.

The co-chairmen of the Joint Budget Committee says the proposal also would give the Legislature more say over where to place the money.

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