NorthWest Arkansas Community College's latest estimate predicts a $1.6 million shortfall for the fiscal year that ended June 30, officials said.
A carryover of surplus money from previous years will cover the loss, said Becky Paneitz, president.
The college needs to turn its finances around, lawmakers said.
"I think all of us have to recognize that we cannot spend more than we take in," said Sen. Kim Hendren, R-Gravette. "It is starting to affect cities across the nation that are declaring bankruptcy. They have to match the revenue to the expenses. These questions will be raised in the Joint Budget Committee."
Hendren is a member of that committee.