Back Room Deals and Cronyism

One way to know that back room deals are being done concerning public policy is by investigating how things are put together.

On Tuesday, December 30, 2025, the Pulaski County Facilities Board held a specia meeting. Here's the agenda for that meeting.

AGENDA

PULASKI COUNTY PUBLIC FACILITIES BOARD

The Pulaski County Public Facilities Board will meet at 9:00 a.m., Tuesday, December 30, 2025, to

consider the following matters:

1. Presentation by Arkansas Outdoor Academy, an Arkansas public charter school

2. Approval of Minutes of April 14, 2025 Board Meeting, if available

3. Report re Checking Account Balance

4. Legal Fees Invoice

5. Any other matter to come before the meeting

The meeting was held in the offices of a private law firm.

It was held during the winter holiday season.

It was a special meeting called for one purpose, to hear a presentation by the private entity behind a newly imagined public charter school known as "Arkansas Outdoor Academy."

And it was a meeting planned and convened, with little public notice, so the private backers of the "Arkansas Outdoor Academy" could get the Pulaski County Public Facilities Board to issue a revenue bond for up to $14 million dollars for acquiring land, renovating an office building in the Riverdale area of Little Rock (the Rebsamen Building), and equipping the acquired land and building to become the "Arkansas Outdoor Academy."

The Arkansas Outdoor Academy has not hired its faculty.

It has not registered students for grades 6-9, the purported target student population.

The backers of The Arkansas Outdoor Academy have not previously operated a school for the targeted student population.

So why did the Pulaski County Public Facilities Board, whose members are appointees of County Judge Barry Hyde, hold a special meeting in the offices of a private law firm during the winter holidays to hear a presentation from backers of "The Arkansas Outdoor Academy."

Why did Hyde appointees agree to recommend that Pulaski County (through its Quorum Court) approve a revenue bond issue for up to $14 million for a start up?

What verified financial records show that the limited liability company behind The Arkansas Outdoor Academy has the necessary operating capital, pedagogical competence, fiscal discipline, and other essential knowledge and skill to run a public charter school comparable to that of any public school in Pulaski County?

Here's an Internet quick read about what happens when a default occurs on a revenue bond.

"Revenue bonds are repaid from income generated by a specific project or system, such as:

 • Water or sewer fees

 • Toll roads or bridges

 • Airports or ports

 • Hospitals

 • Public utilities

 • Housing developments

If the project’s revenue falls short, the issuer may default.

Key feature:

Unlike general obligation bonds, repayment is not backed by full taxing power — only the project’s income.

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Why Revenue Bonds Default

1. Revenue shortfalls (most common)

 • Lower-than-expected usage

 • Economic downturns

 • Population loss

 • Competition or changing demand

 • Pricing set too low

Example: a toll road with fewer drivers than projected.

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2. Poor financial projections

 • Overly optimistic feasibility studies

 • Incorrect demand forecasts

 • Political pressure to approve projects

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3. High operating costs

 • Maintenance expenses exceed projections

 • Labor or energy costs rise

 • Aging infrastructure

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4. Project failure or mismanagement

 • Construction delays

 • Cost overruns

 • Inefficient operations

 • Corruption or poor oversight

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5. External shocks

 • Natural disasters

 • Regulatory changes

 • Technology shifts

 • Major economic disruptions

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What Happens When a Revenue Bond Defaults

For the issuing government or agency

Financial consequences

 • Credit rating downgrade

 • Higher future borrowing costs

 • Loss of market credibility

 • Difficulty funding future projects

Operational consequences

 • Forced rate increases (water, tolls, fees)

 • Service cuts

 • Asset restructuring

 • Receivership or outside financial control in some cases

Legal consequences

 • Bondholder lawsuits

 • Court oversight

 • Debt restructuring negotiations

Importantly:

Taxes usually cannot be used automatically to repay revenue bonds (unless voluntarily chosen or politically approved).

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For bond investors

 • Missed payments

 • Reduced principal through restructuring

 • Lower market value of bonds

 • Litigation or settlement recovery

Revenue bonds typically pay higher interest because of this risk."

A revenue bond issue is not backed by tax dollars, but by the revenue stream from the project for which the bond is issued. So what revenue history exists for the newly created Arkansas Outdoor Academy that shows whether the Arkansas Outdoor Academy can make the principal and interest payments for the debt for which the Facilities Board the purported bond "issuer") recommended that Pulaski County lend its credit rating?

And why is the Pulaski County Public Facilites Board helping to finance a startup "Outdoor Academy" that will drain tuition dollars from public schools in Pulaski County that are struggling?

These questions should have been considered and asked by Barry Hyde's appointees on the Public Facilities Board.

They should have been asked by Barry Hyde.

They should have been asked by the members of the Quorum Court.

Why weren't they?

This deal reeks of cronyism.

The Pulaski County Public Facilities Board is not a venture capital firm. Barry Hyde should not have allowed it to be treated as one merely to help his cronies.

I'm running for County Judge because Pulaski County deserves better executive leadership. Vote for Wendell Griffen for County Judge thru March 3.

One County.

One Community.

One Future.