Gov. Sarah Huckabee Sanders was joined by legislative leaders on Wednesday to sign identical budget bills. Photo: Michael Hibblen
At the conclusion of a three-week fiscal session of the Arkansas Legislature, Gov. Sarah Sanders on Wednesday (April 29) signed the Revenue Stabilization Act into law.
The $6.7 billion budget for the fiscal year that begins in July includes an increase in funding for Educational Freedom Accounts, authorizes millions in economic incentives to attract a major manufacturer to West Memphis and funds a pay increase for Arkansas State Troopers.
The governor was surrounded by Republican state lawmakers for the bill signing ceremony.
“A fiscal session is always a mad dash, but we came together, we did the work and we delivered for the people of Arkansas,” Sanders said.
The budget meets the goals she laid out in her State of the State address at the start of the session, Sanders said, “and because of that, we will now be able to cut taxes for the fourth time in three years next week.” That’s when legislators will return to the Capitol for a special session focused on reducing state taxes.
“When we cut Arkansas’ income tax, we will have lowered our overall rate since I took office by 25% and returned more than $1.5 billion to the people of Arkansas. We will also lower our corporate tax rate … by 0.2% and continue to make Arkansas the best state in America to do business,” Sanders said.
Senate President Pro Tempore Bart Hester, R-Cave Springs, acknowledged to state agency directors and cabinet secretaries in the room that the final approved budget would be tight for all of them. But he said that was necessary to put the state in a financial position to responsibly pass additional tax cuts.
“What we’re asking them to do is more with less and continue to serve the people of Arkansas. I want to thank every state employee who’s out there doing their part to make sure that we continue to provide great services,” Hester said.
House Speaker Brian Evans, R-Cabot, stressed the importance of education-related votes during the fiscal session.
“Education that is for all children, regardless of their age, their gender, their background, their wealth index, or physical, or mental capabilities,” Evans said. “We are investing in the children of Arkansas.”
Additional EFA funding
When Sanders was questioned about expanding funding to cover the growing cost of sending kids to private schools or for home schooling, she said public schools are also benefitting from the budget approved by the legislature.
“We’re putting about $300 million into Education Freedom Accounts. At the same time, we’re putting $3.3 billion into public education — 10 times as much — the largest investment we’ve ever made in public education in the state of Arkansas. And you want to know what the best part is? It’s actually working,” Sanders said.
“Our kids are doing better, our teachers have higher satisfaction than they have ever had, our state is winning because we’re investing where it matters, and it’s gonna make a difference, not just in the immediate, right now. We’re seeing our test scores go up. We’re seeing our schools do better.”
She suggested the benefits to education will be felt for decades to come and said Arkansas is a blueprint that other states are following.
West Memphis Superproject
The budget authorizes up to $300 million to be transferred from surplus funds to help convince a major manufacturer to build a superproject in West Memphis. Details are being kept confidential, but it has been suggested the project could initially create up to 4,000 jobs, then another 2,000 after completion.
“I’m hopeful that we will be able to get this project,” Sanders said. “It will be a massive economic investment in a region of our state that will benefit greatly.”
Sanders said she couldn’t get into specifics about the other states vying for the project, but suggested “Arkansas is in a very good position.”
The money would be split into $150 million for an incentives package, then another $150 million for infrastructure improvements, like roads and highways. There have been assurances this is not a data center.
Senate and House leadership
During his remarks, Senator Hester congratulated Sen. Breanne Davis (R-Russellville) for winning a majority of the votes in the Senate earlier in the day to become president pro tempore designate for next year’s general session. But that’s not the final vote.
Sen. Ron Caldwell, R-Wynne, told colleagues he too is interested in the leadership position. After the November election and before the Senate is convened next year, a decision is expected during an organizational meeting.
Meanwhile in the House, Speaker Evans, who did not face a challenge, was again elected to the top leadership position in that chamber.
This story was reported for Talk Business & Politics and the Newsroom Ventures newspapers. I’ll discuss the fiscal session and what’s planned for next week’s special session on the “Talk Business & Politics” program airing Sunday, May 3 at 9:30 a.m. on KLRT-Fox 16.
Veteran reporter, editor and manager at newspapers, radio and television stations. I’m also a photographer, historian and author, having written the 2017 book Rock Island Railroad in Arkansas.
