John Shannon has resigned as Arkansas State Forester following a legislative audit that questioned financial practices at the Arkansas Forestry Commission that led to the layoff of 34 employees. Shannon’s decision came after reviewing the results of the Division of Legislative Audit’s investigation, which revealed that the commission improperly borrowed more than $6.4 million from federal grants to prop up its strained budget.

“John Shannon has helped develop the Arkansas Forestry Commission into a widely respected agency that Arkansans count on, especially in times of crisis,” Arkansas Governor Mike Beebe commented. “However, after Legislative Audit’s review of the financial troubles at Forestry, I agree that a change in management is needed. I thank John for his years of dedicated service to Arkansas.”

The Arkansas Forestry Commission will make a recommendation to Governor Beebe for an interim agency head. Shannon’s resignation does not change Beebe’s supplemental request for the rest of the fiscal year and will not alter plans to rehire 15 firefighters with reallocated Agriculture Department funds.