Consultants tell Pulaski County council long‑range plan shows overall stability but several funds face structural deficits

Consultants presented a long‑range fiscal sustainability plan to the Pulaski County Council and said the county’s overall finances “remain financially stable overall,” while flagging several individual funds that face structural deficits over the planning period. The consultants said their report uses AFR and county records and models cash flows by fund to identify funding gaps ahead of the annual budget cycle.

The presentation identified one of the largest pressures as proposed state property tax reforms and the new local income tax (LIT) distribution, which consultants said is likely to change how revenue is distributed beginning in 2030. “There are a few funds that are facing some structural deficits over the planning period,” the presenter said, urging the council to plan for those gaps through either revenue adjustments or expenditure changes. The report models baseline expense growth at roughly 3% and ties capital outlays to the county’s capital improvement plan.

The consultants recommended using the FSP to perform line‑by‑line budget reviews (0‑based budgeting) to avoid embedding nonrecurring items into recurring budgets. They noted that cash reserves should be used only for nonrecurring expenses and that some funds will need corrective action if current revenue trends continue. The council asked about next steps; consultants said they will update the report when parcel‑level analysis is available and provide follow‑up slides on specific funds.

Ending balances, reserve policy and the timing of projected shortfalls were a central focus: the consultants showed fund ending balances through 2031 and warned of a dip in 2031 if no policy changes are adopted. The presentation concluded with an offer to run additional scenarios and to incorporate more detailed parcel analysis when available.