LITTLE ROCK, Ark. – Governor Sarah Huckabee Sanders introduced a $6.97 billion balanced budget proposal Friday, prioritizing investments in education, public safety, and healthcare, while emphasizing fiscal responsibility to create opportunities for future tax reductions.
“This year’s balanced budget continues my administration’s record of fiscal responsibility on behalf of the people of Arkansas, making investments in key priorities while still holding the line on the growth of government to provide room for tax cuts,” Sanders stated. She also expressed confidence in collaborating with lawmakers to finalize the budget.
The proposed budget represents an increase of $311.6 million, or 3.94%, over the previous year’s allocation. It builds on Arkansas’ fiscal strength, following a $655 million state budget surplus last fiscal year—one of the largest in the state’s history. State revenues also exceeded projections early in the current fiscal year, with October alone generating $45 million more than anticipated.
Key investments outlined in the proposal include additional support for early childhood education, enhancements to the state’s Human Development Centers (HDCs), expanded services for residents on the Community and Employment Support (CES) Waiver waitlist, and further funding for the recently established Education Freedom Account program under the LEARNS Act.
The plan also allocates $75 million in annual interest earnings toward Medicaid and identifies additional surplus funds for one-time priorities. A full breakdown of the proposed increases was provided with the announcement.
The legislature will now review the Governor’s recommendations as part of its budget deliberations.