Key Proposal
Arkansas Gov. Sarah Huckabee Sanders unveiled a $6.5 billion state budget proposal for the fiscal year starting July 1. The plan includes a 3% budget increase, amounting to $182.5 million, with half directed toward expanding a school voucher program.
Education Priorities
Voucher funding: $90 million in additional funds for "Education Freedom Accounts," raising total funding to $187 million.
Future outlook: Reserve funds of $90 million set aside to support the program’s full implementation by 2025-2026, expanding participation from 14,000 to nearly 39,600 students.
Program purpose: Vouchers support private and home-school expenses.
Critics warn the program’s growth could outpace funding for public schools. However, Finance Secretary Jim Hudson emphasized separate funding sources for vouchers and public schools, ensuring neither is compromised.
Surplus Projections
The state expects to end the current fiscal year with a $280 million surplus and projects a $300 million surplus for the next fiscal year.
Medicaid and Maternal Health Funding
The budget includes $13 million in new Medicaid funding for maternal health initiatives, following recommendations from a governor-appointed panel. An additional $100 million from the surplus is earmarked for Medicaid reserves.
Tax Cuts On Hold
Gov. Sanders did not propose new tax cuts in this session. Legislative leaders, including Sen. Jonathan Dismang, advised waiting until the session concludes to assess future cuts.
Corrections Funding
Department of Corrections: $50 million in additional funding, including $40 million for a $1.6 billion, 10-year contract with a medical provider.
Prison project: While no new funds are allocated for the proposed 3,000-bed prison, over $400 million is already available for the project.
County jail support: $9 million in additional reimbursements for housing Arkansas prisoners.
State Employee Pay
The governor proposed $3 million to raise pay for thousands of state employees as part of a broader $102 million overhaul of the pay system. The cost will be offset by savings from unfilled vacancies.
Democratic Response
House Minority Leader Andrew Collins criticized the heavy allocation to vouchers, arguing it diverts funds from other priorities and relies on one-time resources for ongoing needs. “It’s a missed opportunity,” Collins said.
Comments