Gov. Asa Hutchinson is proposing slicing state general revenue for War Memorial Stadium from $895,171 in the fiscal year that starts July 1 to $447,647 in the fiscal year starting July 1, 2018.
The stadium is allocated $889,085 in state general revenue in the current fiscal year, which ends June 30, said Nick Fuller, a budget manager in the state Department of Finance and Administration. The stadium's total budget is $3.45 million this fiscal year, according to budget records.
Since fiscal 2005 when it received $600,000 in state general revenue, War Memorial Stadium has received such funds each fiscal year ranging from $699,999 in 2006 to $897,000 in fiscal 2009, records show.
The Republican governor also is recommending "a feasibility study be conducted to provide a comprehensive assessment of the future uses of the stadium and a road map for financial sustainability," according to budget records.
Hutchinson said Wednesday that his goal is for War Memorial Stadium to move to a self-sustaining model, and his desire is for this "great asset" to have "more support -- not less support."
He said he is proposing cutting state general revenue for the stadium in half in fiscal 2019, which begins July 1, 2018, rather than in fiscal 2018, which begins July 1, to provide time for the War Memorial Stadium Commission and state officials to adjust and plan.
The stadium will finish bond payments of roughly $400,000 a year within the next two years, and that should reduce the pressure on the stadium's budget, Hutchinson said in a telephone interview from China, where he is completing an economic-development trip.
He said there is no "bigger fan" of War Memorial Stadium than himself, and his desire is for it to have a stronger future. He said the War Memorial Stadium Commission, chaired by Kevin Crass of Little Rock, has provided great leadership and done "a wonderful job." He said he is anxious to work with the commission and others on a long-term plan.
He said he expects to announce plans for the stadium soon, but he declined to detail what the proposals would entail.
The Legislative Council and Joint Budget Committee will hear about Hutchinson's recommendations today during budget hearings in advance of the regular legislative session starting Jan. 9.
Sen. Bart Hester, R-Cave Springs, who unsuccessfully called for cutting the War Memorial Stadium's general revenue budget in the current fiscal year, said he supports Hutchinson's proposed budget cut in fiscal 2019 because the state's children have so many unmet needs ranging from foster care to pre-kindergarten.
"How can we provide subsidies for a football stadium when we have needs for kids?" Hester asked.
Joint Budget Committee co-Chairman Rep. Lane Jean, R-Magnolia, said he wants to learn more about Hutchinson's plan and discuss it with the governor before making any comment.
Crass said he's disappointed in the governor's recommendation.
If the Legislature follows the governor's recommendation, it will make it more difficult to fund maintenance and operations at the stadium, he said.
Crass said the stadium's last bond payment totaling $525,000 is due in February. But the University of Arkansas at Fayetteville will no longer pay the stadium $475,000 a year in fiscal 2018 and fiscal 2019, an amount that it has paid for the past three years. The payment includes $400,000 for UA for playing a game in Fayetteville rather than Little Rock and $75,000 stadium rental for the UA football game in Little Rock, he said.
Without a significant increase in revenue or a significant reduction in expenses, the stadium could face deficits of more than $300,000 a year in fiscal 2019, 2020 and 2021, he said.
Starting in fiscal 2006, funding for operation and upkeep "came from stabilized general revenue in the miscellaneous agencies fund so that cash revenue can be used to do some much needed major renovations to the stadium," and the War Memorial Stadium Commission "wishes to continue to receive general revenue funding for fiscal years 2016, 2017 and so on," according to budget records.
Cash revenue is raised by the use of the stadium through rentals and profits from concession sales and is used for operations not covered by state general revenue and for major renovations.
Crass said he received a call a few months ago about the possibility of a general revenue cut, and he learned about Hutchinson's proposal last week.
"I have had communications with the governor," Crass said. He declined to elaborate.
"It is my hope we can work with the governor and the Legislature to adequately fund maintenance and operations, including much needed capital projects, so the building's viability can be assured," he said.
Hutchinson said he thinks state officials can develop a plan to make the stadium self-sustaining.
As for the future of UA football games in Little Rock, Hutchinson said that's a decision for the university to make.
He said he would prefer that the Razorbacks continue playing at War Memorial, and "whatever decision is made, we need to have a plan for War Memorial Stadium."
Last month, UA Athletic Director Jeff Long told the Little Rock Touchdown Club that he had nothing new to report on the Razorbacks' plans regarding War Memorial, where the Hogs have played at least one game a season since 1948.
Long said he and the university had not had any recent discussions with the stadium commission. The Razorbacks have three years remaining on the contract with War Memorial, which included the Oct. 1 game against Alcorn State. Next up are a nonconference game in 2017 and a Southeastern Conference game in 2018.
"We are going to have a difficult decision in the future about what to do with War Memorial," Long said last month. "We will be playing games at War Memorial until 2018. After that is when we will begin discussions."
A Section on 10/20/2016