The government takes in more than it spends, and gives the balance away to make sure elected officials have some pork to take back to their districts…so their districts will send them back next year.  What a cycle.  From BaxterBulletin:

At a time of record-high gasoline prices, fuel surcharges and related challenges for consumers, about $260 million in excess funds at the end of Arkansas’ 2007-08 budget has not gone unnoticed by lawmakers and the public.

The sum consists of $176.5 million left over from the annual budget cycle that ended June 30, and $83 million from previous years.

The money is held in the state’s General Improvement Fund where it earns a moderate rate of interest, according to state Sen. Paul Miller, D-Melbourne, a member of the legislative Joint Budget Committee.

The GIF is where lawmakers go usually at the conclusion of each general assembly to divvy up funds for such local past favorites as the Mountain Home Saddle Club Arena, Arkansas State University Mountain Home and area fire districts.

“I doubt all of that money will stay in the General Improvement Fund,” said Miller. “I suspect by the time the Budget Committee meets in October we will have a better understanding of revenue and the state’s economy.”

Miller said he shares Gov. Mike Beebe’s doubts that state government will remain flush with cash as it is now. Statistical information regarding impact of a 50-percent cut in the state’s sales tax on groceries is incomplete, Miller said. The Legislature removed 3 cents of the state’s 6-cent sales tax on groceries last year, and Beebe has promised to push the Legislature to remove the remaining 3 cents from groceries “in a responsible way” when the impact of the first cut is clearer.

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