Legislative Budget Hearings Kick Off in Arkansas

Legislative budget hearings have officially begun at the state Capitol, setting the stage for the 2025 regular session starting in January. The Legislative Council and Joint Budget Committee will meticulously review every spending request from state agencies. In November, Governor Sarah Huckabee Sanders is expected to present a balanced budget proposal, which will serve as a foundation for crafting the state’s financial plan.

Education funding is a top priority, with the Senate and House Education Committees recommending a 2.48% increase for foundation school funding. The Arkansas Constitution mandates that the state ensure all children receive an adequate and equitable education, making this step crucial in the budgeting process.

Under Arkansas law, the legislature must determine the necessary funding for education before addressing other programs, reaffirming their commitment to adequately support the school system. The state operates under a balanced budget law, which necessitates spending cuts for state agencies during economic downturns.

Arkansas’s annual budget exceeds $39 billion, with over $6.3 billion coming from state revenue sources. Public schools receive the largest share, with last year’s allocation at $2.57 billion. The state also utilizes more than $12 billion in federal funds, primarily directed towards health services.

With colleges and universities generating additional cash funds, and corrections spending at $662 million last year, the legislature’s decisions in the coming weeks will shape the financial landscape for the state and its residents. Stay tuned for updates as the budget process unfolds.