Pulaski County Moves $42M to Stabilize Finances Amid Budget Dispute

County leaders approve emergency transfer to cover shortfall, launch forensic audit amid disagreement over cause

Apr. 8, 2026 at 1:50am

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A serene, cinematic painting of a county government building in warm, golden light, with long shadows suggesting an underlying tension and uncertainty within the institution.The financial crisis in Pulaski County has exposed deep divisions and communication breakdowns within the local government, raising concerns about budgeting practices and the need for greater transparency.Little Rock Today

Pulaski County leaders have approved the transfer of nearly $42 million from emergency reserves into the county's General Fund in an effort to stabilize operations after concerns surfaced about the county's ability to cover expenses. The move comes amid a dispute over the cause of a roughly $52 million shortfall, with the county treasurer warning of a potential inability to make payroll, while the county judge argues the situation has been overstated.

Why it matters

The financial crisis in Pulaski County has raised concerns about the county's budgeting practices and communication between different offices. The transfer of funds and launch of a forensic audit are aimed at restoring confidence and ensuring the county can continue providing essential services, but the underlying causes of the shortfall remain disputed.

The details

County leaders approved the transfer of nearly $42 million from emergency reserves into the General Fund, along with implementing a hiring freeze, pausing non-essential spending, and launching an independent forensic audit. Treasurer Debra Buckner said the issue stemmed from expenses being 'inflated' or 'unreported,' leaving the General Fund unable to cover day-to-day costs, while County Judge Barry Hyde argued the situation has been 'overstated' and is an 'accounting issue' rather than overspending. Officials agreed a full audit is necessary to determine the root cause and implement safeguards to prevent future issues.

  • The emergency meeting to address the shortfall took place this week.
  • Treasurer Buckner said her office had been 'juggling for two or three days' to ensure employees would be paid.

The players

Debra Buckner

Pulaski County Treasurer who raised the alarm over the county's inability to access sufficient funds in the General Fund to cover expenses.

Barry Hyde

Pulaski County Judge who pushed back on the urgency described by the Treasurer, arguing the county is financially stable overall and the issue has been mischaracterized.

Phil Stowers

Justice of the Peace on the Pulaski County Quorum Court who said the emergency action was necessary to stabilize the situation.

Mike Hutchens

Pulaski County Comptroller who acknowledged a breakdown in communication between offices as a contributing factor.

Michael S. Rushin

Republican candidate for Pulaski County Judge who criticized current leadership, calling the situation preventable.

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What they’re saying

“It has become critical because it has been discovered that expenses were inflated, unreported to the Treasury or the Quorum Court.”

— Debra Buckner, Pulaski County Treasurer

“We ain't broke. Total funds on deposit... $180 million.”

— Barry Hyde, Pulaski County Judge

“By passing the ordinance we did, we stopped the bleeding.”

— Phil Stowers, Justice of the Peace, Pulaski County Quorum Court

“We failed to communicate with each other. Blame it on me... whatever you want to do.”

— Mike Hutchens, Pulaski County Comptroller

“This is utterly unnecessary and avoidable. My sympathies are with the employees of Pulaski County, especially our first responders.”

— Michael S. Rushin, Republican candidate for Pulaski County Judge

What’s next

Officials say the $42 million transfer is expected to stabilize operations in the short term, but additional steps including spending pauses and tighter budget controls will be needed to address the remaining gap. A full forensic audit has been ordered to determine the root cause and implement safeguards to prevent future issues.

The takeaway

The financial crisis in Pulaski County has exposed deep divisions and communication breakdowns between county offices, raising concerns about the county's budgeting practices. While the emergency measures aim to restore stability, the underlying causes remain disputed and a full audit will be crucial to rebuilding trust and implementing reforms to prevent similar crises in the future.