Searcy's Deficit Spending

During her two terms as Mayor, Belinda LaForce has relied on deficit spending to run Searcy's city government with the support of aldermen like Mary Ann Arnett.

Deficit Spending in 2005-2006
Deficit budgets over the past five years have grown the city's spending as one year's deficit spending becomes the next year's "budgeted" spending.

In the December 2005 and January 2006 debate over the 2006 city budget, the City Council and Mayor LaForce disagreed over the 2006 budget because it proposed deficit spending. In a December 21, 2005, article in the Daily Citizen, Mariea Grayson reported that "LaForce's budget remains $268,482.08 in the red." The article quotes Mayor LaForce's view of the 2006 budget,

"'I want to appropriate money from the reserves to take care of the deficit.' LaForce told council members."

"'In the first of 2005, they appropriated $190,000 or more out of the reserves,' LaForce said, 'All I'm asking is they do the same thing in 2006.'"

"LaForce said there are only two options left to the city. 'We either pull it out of the reserves or raise revenues,' she said."

Mayor LaForce proposed this deficit budget December 13, December 20, January 10, and January 11 and insisted on using the reserves rather than cut spending. The budget passed January 11, 2006, with Mayor LaForce casting the tie-breaking vote. Mariea Grayson reported in a January 12, 2006, Daily Citizen article,

"Searcy will have to make up $268,482 with reserve funds or other unknown income."

"LaForce said she doesn't understand the problem the council is having appropriating money from unappropriated funds to cover the budget."

Mayor LaForce proposed deficit budgets for both 2005 and 2006 using reserve funds (the city's saved up, unallocated money from more "revenues" coming in than anticipated) to make up the difference. The City Council shares the blame for this past deficit spending because they voted for it.

Deficit Spending in 2009-2010
Even though the members of the City Council changed from 2006 to 2009 including the addition of Mary Ann Arnett in 2007, things have not changed. From January 2009 to September 2010, the city's reserves have declined from $2.267 million to $1.201 million according to the city's financial statements. In fact, according to the September 2010 financial statement, the city has built up a deficit for this year of over $475,000. Although the Mayor and City Council have only spent 68% of their budgeted revenue for the first three quarters of 2010, they have only collected 64.9% of their projected revenue in those nine months (75% of the year).

In the past two years, Alderman Mary Ann Arnett has not only voted for all of the policy items Mayor LaForce has placed on the City Council meeting agendas, she has also voted for over $1,000,000 of deficit spending despite our uncertain economic times.