Education, maternal health top Gov. Sarah Huckabee Sanders' budget plan
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Screenshot courtesy the Arkansas Legislature.
Republican Gov. Sarah Huckabee Sanders presented her proposed budget to lawmakers Thursday. It would increase spending by 2.89% — about $182 million — for fiscal 2026.
The big picture: The state's constitution requires the budget to be balanced. The proposed general revenue package is $6.49 billion.
State of play: In her presentation to the Joint Budget Committee of the Arkansas Legislative Council, Sanders noted the budget proposes more spending on education, maternal health and the state's corrections department.
By the numbers: It includes an additional $90 million for Education Freedom Accounts (EFAs) — part of the LEARNS Act — and another $90 million in set-aside money as a reserve for EFAs.
- Medicaid funding for maternal health initiatives would receive $13 million and $100 million in set-aside money to ensure the sustainability of Medicaid.
- About $50 million would go to the Department of Corrections, $6 million more to higher education and about $4 million to the Division of Youth Services.
Between the lines: Sanders proposed a new state government pay plan valued at about $100 million last week. The blueprint would mean raises for many government employees by moving wages to a labor market rate and providing "double-digit percent increases" for the state's hard-to-fill roles.
- Most of the money for that plan would come from each department adjusting its budget and not from new spending, she said.
Flashback: The state closed fiscal 2022 and 2023 with surpluses of more than $1 billion.
- Arkansas' top individual income tax rate was cut earlier this year from 4.4% to 3.9%, and the top corporate rate from 4.8% to 4.3%. The reductions are retroactive to Jan. 1, 2024.
What she's saying: "I look forward to working with each of you getting this balanced budget passed," Sanders said to the committee. "At the end of the day, it's really just a technical correction."
What's next: The 95th General Assembly of the Arkansas Legislature convenes on Monday, Jan. 13.