Mullenix & Associates
The General Assembly is expected to convene for an Extraordinary Session in mid-June to approve a budget for the Arkansas Game and Fish Commission (AGFC). Earlier this month, the House failed to pass an appropriation for AGFC before the Fiscal Session adjourned sine die. Without action, the commission will lack spending authority starting July 1. Under the Arkansas Constitution, the governor must call for a special session. Governor Sanders has yet to do so.
Legislative leaders have indicated they may also consider additional income tax cuts if a special session is convened. In 2023, the General Assembly reduced the individual income tax rate from 4.7% to 4.4% and the corporate income tax rate from 5.1% to 4.8%, beginning in tax year 2024.
“With less than two months remaining in the current fiscal year, it is clear that the economy in Arkansas remains strong, yielding revenue collections well above the projected levels, even with the impact of tax cuts… Governor Sanders’s and the General Assembly’s pro-growth and fiscally conservative budget priorities have our state’s economy on a good path.”— Arkansas Department of Finance and Administration (DFA) Secretary Jim Hudson
In the news:
- The Arkansas DFA revised its general surplus projection from $240.5 million to $708.1 million for FY24 and increased its forecast from $370.6 million to $763.7 million for FY25.
- Arkansas Treasurer Larry Walther reported that the state received interest earnings of $91.79 million in the last quarter—up from $71.87 million last year. He attributed the increase to higher interest rates and a larger investment portfolio.
- The Arkansas Supreme Court reversed a Pulaski County Circuit Court judge’s ruling that Acts 249, 728, 736, and 973 are unconstitutional. The laws enacted new limits and rules on election procedures related to photo identification, non-voter proximity to buildings where ballots are being cast, signature verification on absentee ballots, and the expedited drop-off deadline for absentee ballots.
- Following the legislature’s approval to shift $500,000 in funds from the Arkansas Center for Health Improvement for the state’s first certified nurse-midwifery program, the University of Arkansas for Medical Sciences announced it aims to launch the initiative in 2026. The legislature’s decision to fund the new program at UAMS is part of the efforts to reduce Arkansas’s maternal mortality rate, which is currently the highest in the U.S.
- State Capitol employees have safely returned to work following a kitchen fire in the basement on May 17. Fortunately, there were no injuries or significant infrastructure damage.
