LITTLE ROCK - Governor Mike Beebe has accepted a recommendation by the Arkansas Department of Finance and Administration to cut the state budget by $100 million for the current fiscal year. The revised budget forecast comes after revenues fell below those predicted for the first three months of the fiscal year.

"Just like any family or business, state government must live within its means," Beebe said. "Despite our conservative budgeting, it appears that our recovery from the recession has been slower than anticipated. There are still positive signs in the revenue numbers, and we maintain hope that the recovery will accelerate."

The revised cut means a 2.2 percent reduction of the overall budget, with the Departments of Correction, Community Correction and Health and the Arkansas State Police seeing the largest reductions. Existing fund balances will ensure continued adequacy for public education.