Gov. Sanders signs 2027 budget and calls for tax cuts
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Screenshot via Gov. Sarah Huckabee Sanders
Gov. Sarah Huckabee Sanders on Wednesday signed the Revenue Stabilization Act, locking in a $6.7 billion budget and setting lawmakers up for a special session next week focused on cutting income taxes.
Why it matters: The spending plan, which is a 3% increase from last year, effectively closes out the fiscal session and cements the state's priorities for the year that starts July 1.
State of play: Sanders said the budget "fulfills our promise" to fund priorities, including "education freedom" accounts and the state employee pay plan, while keeping overall spending in check.
- She said the tax package expected next week would mark the fourth tax cut in three years, lowering the state's overall income tax rate by 25% since she took office in 2023, and will also reduce the corporate tax rate.
By the numbers: Lawmakers approved a budget that was about $211 million higher than the fiscal 2026 budget. It includes $309.4 million in general revenue for the school voucher program, also known as educational freedom accounts, and sets aside another $70 million in surplus funds for possible growth in the program.
- Critics of the program, including state Sen. Bryan King (R-Green Forest), say it subsidizes education for families already paying to attend private schools.
The budget also allows up to $300 million in surplus funds for a possible unnamed manufacturing project in West Memphis.
- Asked about the effort, Sanders said Arkansas is "in a very good position" but that "there's still work to do." She said it had the potential to be a "massive economic investment" for the region.
What's next: Legislative leaders are expected to return next week for a special session centered on cutting state income taxes, but Sanders has not yet officially called the session.