Fort Smith seeks to balance 2026 budget through vacancy freezes and reductions

Fort Smith officials are addressing a projected $8. 09 million budget deficit for 2026 through strategic staffing freezes and operational reductions. The proposed general fund budget estimates $53. 7 million in revenue against $61. 8 million in expenditures, a reflection of ongoing financial difficulties.

Chief financial officer Andy Richards identified personnel expenses, which have surged due to rising health insurance premiums, as a major factor in the city's fiscal imbalance. Directors, including At-Large Director Neal Martin, prefer to prioritize spending cuts before considering tax increases, emphasizing the importance of maintaining service levels. The city is evaluating around $3. 8 million in potential budget cuts, which include freezing vacant positions across various departments. While holding positions open may impact service delivery, officials argue that closing the operational gap is crucial.

Richards noted that Fort Smith's struggles are part of a broader trend affecting municipalities statewide due to inflation and rising costs. City leaders remain hopeful that these measures will lead to a healthier budget for 2026 compared to previous years.