FORT SMITH, Ark – In a surprise defeat, the University of Arkansas at Fort Smith (UAFS) is faced with hard decisions to make up the nearly $16 million of lost revenue without the 0.25% sales tax in Sebastian County.
Chancellor Terisa Riley believes voters decided which way to vote based on what was best for them and their families during a global pandemic when people are watching every cent they spend. “I don’t second guess voters at all.”
Riley also noted that a quarter doesn’t seem like much when all you’re spending is $100, however over the course of the year, that 25 cents becomes $24 and that seems like a lot to those living paycheck to paycheck.
In order to make the difficult decisions of what to do next, Riley held an open forum on Thursday with staff and faculty to start brainstorming ideas to make up the difference left when the UAFS tax expires.
The staff and faculty examined their savings and utility spending to see if those were ways to pay for the projects the tax is currently paying for. Another option the university is currently looking at is applying for grants for funding.
According to Riley, salaries and benefit take up half of the university’s budget and that would also have to be examined.
The tax is set to expire Dec. 31, 2021, so UAFS has some time to decide what to do before feeling the impact of the failure of the vote to extend the tax.
Riley stated that they were still considering the option of a special election but that was a big decision as well.
Shortly after the result was announced, Riley sent out an email that stated, “We’ve been here 92 years, we’ll be here 92 more.”
Riley indicated that universities are about adaptability and the need to change with the times and go with whatever pitches are thrown.
UAFS will continue to think through next steps until they come up with a solution to make up the gap left by the defeat of the 0.25% sales tax.