Arkansas Legislature Highlights 2024 Accomplishments with Tax Cuts, Education Reforms, and Budget Priorities
In 2024, the Arkansas Legislature passed significant measures aimed at reducing taxes, supporting education, and maintaining fiscal responsibility.
One of the most notable achievements was a series of income tax cuts. Arkansas lawmakers reduced the top individual income tax rate from 4.4% to 3.9%, benefiting approximately 1.1 million taxpayers. Additionally, corporate income tax rates were lowered from 4.8% to 4.3%, a move that will save businesses an estimated $66.2 million annually. These tax cuts were passed in a special session in June.
The legislature also made strides to ease the burden on homeowners by increasing the homestead property tax credit from $425 to $500, starting in January 2024. This change will save Arkansas homeowners $46 million annually, with an additional $47 million in savings expected in the second year.
In the fiscal session, lawmakers approved a $6.31 billion budget for the current fiscal year, reflecting a modest 1.76% increase. Known for their fiscal conservatism, the legislature approved one of the most cautious budgets in the state’s history for the upcoming fiscal year.
Education reforms also took center stage. The Education Freedom Accounts program, which promotes school choice, expanded significantly in 2024, with more than 3,000 additional families applying, bringing the total number of participants to about 15,000. The program, which offers $6,672 per student for private school tuition, has been well-received, funding more than 5,500 accounts in its first year.
Further supporting educators, the legislature raised teacher salaries by 3.2%, bringing the average salary to $54,309. The LEARNS Act, which set a minimum teacher salary of $50,000, is expected to further boost wages in the coming years. The act also includes grants for families of 20,000 elementary students to help cover costs for literacy tutoring.
In addition to these measures, new regulations were passed to address the emerging data center and crypto mining industries, ensuring that noise levels and energy consumption do not negatively impact local communities.
Looking ahead, lawmakers are expected to consider further restrictions on student cell phone use when they reconvene in January. This follows the approval of grants for school districts to implement cell phone restrictions and provide mental health services via telehealth. Schools are also using the funds to purchase secure pouches for students to store their phones during the school day.
With a strong focus on fiscal discipline, education, and emerging technologies, the Arkansas Legislature’s 2024 session set a clear direction for the state’s future.
