KATV Channel 7 - The Spirit of Arkansas: Governor Says Cutting 2013 Budget would Affect State Agencies

(KATV) Little Rock - We're now in week two of the fiscal session and the 2013 proposed budget has created tension.

Governor Mike Beebe has proposed his 4.72 billion dollar budget, but Republican Representative John Burris says 21-million needs to be cut.

Both plans increase state spending, but some agency directors think Burris' plan comes with a price, possible lay offs and services cut.

Tuesday morning Governor Beebe explained how the republican's proposal would hurt state agencies. By the afternoon both sides said they're willing to try and compromise.

Governor Beebe has proposed a $4.72 billion dollar general revenue budget for 2013. In it there's more funding for public schools and Medicaid, with a reduction for the department of corrections.

But his proposal is being contended by State House of Representatives leader, John Burris. He explains, "In 2010 we saw a much higher percentage of the cut, about 10 times larger on a smaller budget. There were no lay offs or major interruption in services so I think it can be done. We're talking less than half a percent of the total budget."

Burris counters, cut 21 million by having state agencies cut three percent from their budget. But according to the department heads, it would reportedly trickle down to lay offs, not filling open positions and a cut in services. Parks and Tourism would be on the chopping block.

Among 50 smaller agencies, State agencies that would be cut 3% are: Labor Department, Department of Higher Education, Department of Education, Department of Health, Department of Human Services, Department of Parks and Tourism, Department of Economic Development, Department of Environmental Quality, Department of Arkansas Heritage and the Agriculture Department.

Richard Davies, Department of Parks and Tourism Director says, "We're on the list for $678,000 and it's not funny money. Something will have to go." He adds, "Given that we don't want to lay off $400,000 worth of people, that means the other parts of the budget would have to be adjusted to get appropriation for salaries."

Davies says they'll likely cut back on advertising which is counter productive to attracting tourism, lower services and hold off on renovations. "It's not going to be an expense that's avoided because if you have a leaky roof this year and you don't fix it, then you have a leaky roof next year."

Burris concludes, "The goal is to compromise on something all members can support and I think that's very achievable."

Beebe will meet with republican leaders again to continue the discussion.