Pulaski County Taps $42M in Emergency Funds to Cover Payroll Mistake

Treasurer cites accounting issues and overspending as root causes of $9 million budget shortfall

Apr. 7, 2026 at 3:36am

Got story updates? Submit your updates here. ›

A serene, photorealistic painting of an empty county courthouse or government building, with warm sunlight streaming through the windows and deep shadows cast across the facade, creating a contemplative, nostalgic mood that reflects the financial challenges facing the local community.The financial crisis in Pulaski County exposes the need for greater transparency and oversight in local government budgeting.Little Elm Today

Pulaski County in Arkansas has voted to appropriate over $42 million from its emergency funds to cover a $9 million shortfall in its general fund, which was caused by a payroll accounting issue and overspending. The county treasurer and a justice of the peace cited long-standing budget problems and a lack of communication as contributing factors, and the county judge has called for a full audit to identify the root causes and implement reforms to prevent similar issues in the future.

Why it matters

This emergency reallocation of funds highlights the financial challenges facing local governments, where accounting errors and overspending can quickly spiral into budget crises. The situation in Pulaski County raises concerns about transparency, oversight, and the need for stronger financial controls to ensure taxpayer money is properly managed.

The details

In an emergency quorum court meeting, the Pulaski County Quorum Court voted to move $42 million from the county's emergency funds to its general fund to cover a $9 million shortfall. The county treasurer, Debra Buckner, stated that the issue stemmed from funds being placed in the wrong accounts and overall overspending, rather than any missing money. A justice of the peace, Phil Stowers, noted that the problem had been building for years, with no mention of the accounting issues during previous budget meetings.

  • The emergency quorum court meeting took place on Monday, April 7, 2026.
  • The county's budget problems have been ongoing since at least 2023, according to the justice of the peace.

The players

Debra Buckner

The Pulaski County Treasurer, who cited accounting issues and overspending as the root causes of the $9 million budget shortfall.

Phil Stowers

A Pulaski County Justice of the Peace, who acknowledged the long-standing nature of the budget problems and the lack of communication about the accounting issues during previous meetings.

Barry Hyde

The Pulaski County Judge, who announced that he would like a full audit of the county's finances to identify the root causes and implement reforms.

Got photos? Submit your photos here. ›

What they’re saying

“There is no problem in the treasury. There's a trouble with expenses.”

— Debra Buckner, Pulaski County Treasurer

“This is some accounting issue. This is money not being in the right pot for more or less. But it's been going on for a long time, and I think that's why it built up to the point that it did, where all of a sudden, the General Fund was without money in it.”

— Phil Stowers, Pulaski County Justice of the Peace

“Tonight, we stopped the bleeding with the ordinance that we passed. What I'm hoping is that this countywide audit that was proposed this evening will get us to the root cause of the matter and allow us to put in place guardrails to prevent this from happening in the future.”

— Phil Stowers, Pulaski County Justice of the Peace

What’s next

Pending the full audit of Pulaski County's finances, the county plans to pass an ordinance that will implement new policies, procedures, and communication protocols to prevent similar budget issues from occurring in the future.

The takeaway

The financial crisis in Pulaski County underscores the importance of strong financial controls, transparency, and communication in local government. The emergency reallocation of funds highlights the need for proactive oversight and reforms to ensure taxpayer money is properly managed and budgets are balanced.