LITTLE ROCK, Ark. (KATV) — Arkansas is continuing to withhold state funding from dozens of small towns that are delinquent on their water and sewer audits. If they do not complete those audits by next July, they will not receive those funds at all.
This is the first time Arkansas has ever withheld municipal aid, or “turnback funds,” from towns to force compliance with audit deadlines. It’s a new power given to lawmakers in 2023’s Act 453, but it wasn’t used until July of this year when the Legislative Joint Auditing Committee voted to withhold the funds from over 40 towns that hadn’t completed water and sewer audits for a number of years.
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