Arkansas Commerce Department cuts 20+ jobs over funding shortfall

LITTLE ROCK, Ark. – They brought this on themselves. That’s how some state lawmakers are assessing the situation as the state Division of Services for the Blind (DSB) and Workforce Development cut jobs.

On Tuesday, officials told them that long-standing financial mismanagement has caused visually impaired Arkansans to lose both services and staff.

As of March 31, the agency will permanently eliminate twenty-seven positions, saving more than $1 million.

When KARK 4 News began tracking furloughs at the division last fall, those cuts appeared to be tied only to funding that had been frozen during the government shutdown.

“They didn’t heed warnings. They didn’t heed warnings. They continued to spend money they should not have been spending, and that led to a [reduction in force]? Is that it,” Senator Breanne Davis asked, seeking clarity as she and fellow lawmakers tried to understand the severe financial problems at the state Division of Services for the Blind.

KARK 4 News learned that these problems go back years, with client numbers rising 18% between 2020 and 2024, while DSB spending surged an unexplained 78%—just one example.

Officials also said the director essentially refused to stop over-obligating the agency, expecting additional federal funding.

That funding never arrived.

Director Dr. Cassondra Williams-Stokes retired last month.

Some believe the department that oversees the division—the Department of Commerce—should have exercised stronger oversight.

According to Arkansas Secretary of Commerce Hugh McDonald, the agency operated with significant independence, and Williams-Stokes ignored directives regarding spending.

“We’re trying to get the right leaders in there to turn the ship around, get the train back on the track… whatever you want to call it. And we’re going to do that. We’re going to turn the agency back around,“ said McDonald.

That move is also creating confusion.

Members of the division’s board of directors have identified an internal candidate they plan to submit to the governor for DSB director—one member believes the recommendation will be rubber-stamped.

Meanwhile, the Department of Commerce has selected a different, external candidate to clean up division operations.

That candidate appears to have the governor’s backing.

As officials investigate the reduction in force (RIF), Senator Fred Love asked the Department of Commerce to review the racial makeup of those losing their jobs.

He said RIFs at the federal level often disproportionately impact minority populations, and he wants to ensure that is not happening here.

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