Potential negative budget impacts noted by Fort Smith police chief

Fort Smith Police Chief Danny Baker recently emailed members of the Fort Smith Police Department (FSPD) informing them of his concerns that potential budget cuts jeopardize planned raises, staffing, vehicle and equipment purchases, and facility upgrades.

In his email sent Wednesday (Nov. 12), Baker said he has been told by Acting City Administrator Jeff Dingman that across-the-board raises in the department are unlikely and $1 million could be cut from the FSPD budget.

“The acting city administrator originally told me that he was not going to look at the PD (police department) ‘1st, 2nd, or even 3rd’ but at some point, it may become necessary to ‘touch the police department,'” Baker noted in the email.

Some members of the Fort Smith Board of Directors have in recent months called for deep budget cuts as a means to balance the city’s general fund budget. The board is set to conduct an all-day budget hearing on Monday (Nov. 17).

In 2024, the general fund budget posted a $6.47 million deficit, and is projected to end 2025 with a $15.56 million deficit. The proposed 2026 budget as presented to the board on Oct. 14 projects an $8.092 million deficit. The proposed 2026 budget anticipates $53.695 million in revenue and $61.788 million in expenditures. Of the expenditures, $20.589 million is for the Fort Smith Police Department, and $16.227 million is tied to the Fort Smith Fire Department.

The proposed 2026 budget also shows a $3.658 million decline in estimated revenue, and an $11.126 million decline in expenditures.

In the email to FSPD officers and staff, Baker included the text of an email he sent to Fort Smith board members. In that email, he asked the board to preserve the promised step raises – pay raises within pay grades.

“If the 10% raise is not possible and we have to freeze a few positions, we will make it work,” Baker noted in his email to the board members. “The officers will be disappointed but I suppose that is my fault. However, please do not consider freezing step raises for them. I fear that will decimate our PD.”

Fort Smith Director Neal Martin, who has advocated for the board to move beyond a deficit and try to achieve a budget surplus, said the board faces tough choices.

“It is important that we balance the budget,” Martin said. “Operationally, we’ve got to look hard at what we are doing and make sure we are spending within our means. I can understand Chief Baker’s concern and our main concern is public safety. There are things we cannot jeopardize and we have to be strategic in our budgeting. I think the Board has some difficult choices ahead of us on Monday.”

BAKER EMAIL
Following is the email Baker sent to members of the FSPD on Wednesday. The bold emphasis is his:

Please bear with me through a long email and accept my apologies for addressing you in this way.  I would rather do it face-to-face but logistically that is near impossible.  I hope you will stay to the end.

I hear word is beginning to spread that the Board of Directors and Administration are looking at POSSIBLY making cuts to the Police Department in the 2026 budget.  This is true and I want to explain what cuts have been suggested to me, why they are considering them, and what I am trying to do about it.

Administration has said ALL departments are going to have to make cuts in 2026.  The Acting City Administrator originally told me that he was not going to look at the PD “1st, 2nd, or even 3rd” but at some point, it may become necessary to “touch the police department”.  Last week, he suggested that $1,000,000 would likely be cut from our operations, the 10% raise was probably off the table, vacant positions may need to be frozen, and freezing of officer STEP raises might be a possibility, despite previous assurances by the Board that the PD would not be cut.

Prior to passage of the 1/8 cent sales and use tax (SUT) in 2023, the Police Department was almost entirely funded by the General Fund.  Even after the tax, which was used in part to fund the 24% sworn raises in 2024, police and fire account for over 80% of General Fund expenditures.  Parks, Administration, and other city operating expenses account for the remainder.  Earlier this year, we all learned for the first time that the city has been operating with deficit spending from the General Fund for the last several years.  Last week, we learned the 2025 approved budget started with an approximately $5,000,000 deficit and projections show an over $15,000,000 deficit at the end of this year.  If spending continues as is and revenues do not significantly increase, the General Fund balance (“fund balance”) will be depleted in the next two years.  By city policy, the city is required to maintain a certain percentage of the overall budget in the fund balance each year.  If the fund balance drops below 20%, capital expenses are to be cut.  Below 15%, personnel reductions are required.  You can see where this is headed.  The Board can override this policy but it certainly isn’t a good idea.  Those thresholds are put in place to ensure basic services can continue during economic downturns.  Consensus of the Board is that they want a balanced budget (no deficit spending) in 2026 with a couple of them calling for a surplus.  Personally, I believe a more reasonable approach would be to reduce the deficit over a few years rather than trying to accomplish it in one budget cycle, but “ripping the band-aid off” also has some merit.

We currently have an authorized sworn count of 168.  When I took over as Chief, we had an authorized count of 151.  I managed to get back 13 positions that had been cut in previous years bringing us to 163.  We worked diligently to fill all of our vacancies and accomplished this in 2022, essentially cutting off millions of dollars in salary accruals that we were turning back to the city each year due to officer vacancies. (I told the previous City Administrator then that he needed to start looking for a piggy bank somewhere else than the Police Department.).  I have since been doing everything I can think of to keep those positions filled.  Competition with other agencies has made that a bit of a challenge.  I know you can go to work somewhere else and make more money and probably have your own assigned car.  We want this to be an agency that you are proud to work for and to be a place where you know your contributions are meaningful and you are appreciated.  We also want you to be paid as you deserve and to have good tools to work with.  My long-range plans included adding 5 officers/year every year beginning in 2028.  Through grants and other funding we have been able to add 5 additional positions in the last 2 years, bringing our current, authorized sworn count to 168.  We currently have 13 vacancies and Training/Recruiting is working on building an eligibility list.

We have also been working diligently to create a pathway for increasing our fleet size and providing everyone we can with a take home car.  Dan Dennis has spent countless hours negotiating with Enterprise Leasing, legal counsel, and Finance to make this happen.  I had intended to present this as our preferred option at the Tuesday night presentation of our Capital Improvement Plan (CIP).  Late last week, we hit an impasse.  Enterprise requires $300,000/vehicle in insurance coverage.  By law, the city is only required to provide $25,000/$50,000/$25,000 coverage per vehicle/incident.  The city has tort immunity beyond that amount unless we provide insurance.  To insure the vehicles at the level Enterprise requires, the city would either have to assume the risk for the difference ($250,000) or we supply our own insurance to cover the “gap”.  We are in the process of getting quotes for that “gap” insurance.  The cost of that insurance will determine whether or not we are able to move forward with Enterprise Leasing.  We are also researching other companies that might be more willing to work with us.  All is not yet lost on the fleet leasing front.

Word has probably also made its way around that I have asked for a 10% raise for all sworn officers in 2026.  This is also true and I have been very open with the Board and Administration about my intentions, much to the chagrin of other departments.  I presented a funding model whereby the raises could be paid by existing SUT funds coupled with the $1,000,000 we have been given each year since 2017 (formerly known as “7-year-plan money” and “business license fee money”).  I was told by Administration last week that $1,000,000 would likely not be available.  Without it, I cannot provide money to fund a 10% AND purchase vehicles.

On Tuesday night, I presented our CIP assuming we would not have the $1,000,000 available.  I have requested 17 new patrol vehicles, 4 Special Operations vehicles, 5 CID vehicles, 2 new K9 vehicles, 5 e-Bikes, and 2 new motorcycles.  This should not impact the General Fund in any way as the purchases will be made with SUT and turnbacks from fees collected on court fines.  Under this proposal we will also be giving $3,000,000 back to the General Fund to help cover salaries.  This was presented, but has not yet been approved.  The Board could tell us to buy less vehicles and give more of our SUT money back to salaries.  Or they could tell me to buy more vehicles.  I just don’t know yet.

I have been very clear to Administration and to the Board that I will not support the freezing of STEP raises.  Many of us have lived through that before and it was a very difficult time.  I have objected to the freezing of any positions but am willing to concede no more than 10.  That will put us at 158, which is 5 below what we should really be at this point (163).  One Board member I talked to said he has heard “6”.  If I can get them to 5, that will put us right where we need to be in 2026.

Finally, I hold little hope for a raise in 2026 at this point but we could be surprised.  Some of the Board members have expressed a desire to make sure you are provided with some kind of salary increase.  Again, I don’t know what that might look like or how they will propose funding it but it will come at the expense of either somewhere else in our budget, other departments, or a combination of both.

Following is an excerpt from an e-mail I sent the Board on Monday:

“I have also heard it has been said that it “isn’t fair” for the PD to get raises if no one else does.  There have been many years that the PD didn’t receive raises when others did.  It isn’t a matter of fairness.  It is a matter of need.  I currently have 13 sworn police officer vacancies and lost most of those to other agencies who promised higher salaries, an assigned car, or both.  I fully expect to be required to freeze some of those positions in order to balance the General Fund Budget but we cannot lose very many more and continue to provide the level of services we do right now.  Year after year, the PD has come in well under budget.  We have met every “administrative” hold placed on us and turned back millions to the General Fund.  Salary accruals due to vacancies in the PD were dumped back into the GF for many years. I do not believe the GF is in a deficit because of spending at the PD.  Yes, our overall budget has increased over the last few years but most of that is due to personnel costs, inflation, and increased spending for Animal Control and Jail expenses beyond our control.  We have worked very hard to acquire and maintain a fully-staffed PD and we have offset the personnel increases with contributions from the SUT fund.
 
I completely understand the need to eliminate the GF deficit and I do not envy the position you or Administration is in at this point.  But we didn’t get here overnight and I certainly would not have entertained proposing another raise this year if I had known we were going to be cut.  If the 10% raise is not possible and we have to freeze a few positions, we will make it work.  The officers will be disappointed but I suppose that is my fault.  However, please do not consider freezing Step raises for them.  I fear that will decimate our PD.”

In closing, I want to say again how much I appreciate each and every one of you.  The sacrifices you make all day every day will always be undercompensated.  There is no way to put a value on the immense amount of good you provide this community or the toll it takes on you and your families.  I am just as frustrated as you that the city has once again found itself in this predicament.  Someone should have been sounding the alarm long before we got to this point.  I also know you, more than anyone else, have the dedication and commitment to power through this with dignity and honor.  Whatever may come, know that it will not last and it is not any fault of yours.  Please accept my apology and know that all is not lost.  Your service is needed now more than ever and I know I can count on you to step up where others have fallen short.