LITTLE ROCK, Ark. — On Thursday, Arkansas Governor Sarah Huckabee Sanders unveiled a proposed budget for the upcoming fiscal year that totals approximately $6.5 billion, with a significant portion allocated for a school voucher initiative.
The Republican governor’s plan includes a near 3% increase, equating to an additional $182.5 million, starting on July 1. She presented her budget proposal to lawmakers in advance of the legislative session, which is scheduled to commence on January 13.
“Budgets reflect our priorities and fulfill the commitments we made during our campaigns: enhancing education, maternal healthcare, effective governance, public safety, and the welfare of children,” Sanders stated to the Joint Budget Committee. “Each of us committed to improving these systems, and this balanced budget allows us to honor those promises.”
Anticipating a surplus of nearly $300 million for the state by the end of the next fiscal year, state finance officials project a surplus of around $280 million for the current fiscal year.
In her proposal, Sanders advocates for a $90 million increase in funding for the education freedom accounts, up from $97 million to $187 million. Additionally, she has earmarked $90 million of surplus funds as a reserve for this program.
The freedom account initiative, which covers expenses for private schooling and homeschooling, has already begun implementation. Currently, over 18,000 students are enrolled, and the program is set to be completely operational by the school year 2025-2026.
However, some critics of the voucher program have expressed doubts regarding the state’s ability to maintain growth without adversely affecting public schooling. Republican Representative Jim Wooten remarked on the potential consequences, noting, “If we don’t monitor our actions, we may end up spending more per student on private education than what we allocate for public schools.”
In response, Finance and Administration Secretary Jim Hudson defended the plan, asserting that funding for vouchers and public schools originates from separate sources. “Yes, it is feasible to support both initiatives simultaneously without detriment to either,” Hudson countered.
Additionally, Sanders’ budget encompasses a $13 million boost in Medicaid funding aimed at implementing initiatives from a task force focused on maternal health. Furthermore, the budget designates $100 million of the state surplus for Medicaid purposes.
During her brief address, Sanders did not mention any intent to pursue further tax reductions in the upcoming legislative session. Since taking office last year, the mostly Republican legislature has approved three income tax cuts advocated by Sanders.
Legislative leaders indicated a preference to delay discussions on further tax cuts until after the upcoming session. Republican Senator Jonathan Dismang, who co-chairs the Joint Budget Committee, commented, “There’s no need to expedite decisions in this session. It would be wiser to hold off on income tax discussions.”
Additionally, Sanders proposed an extra $50 million for the Department of Corrections, out of which $40 million will go towards a substantial $1.6 billion, decade-long contract with a medical service provider. An additional $9 million is allocated for reimbursements to county jails where Arkansas inmates are held.
Sanders’ plan includes the construction of a 3,000-bed prison, with approval given for the Franklin County site despite opposition from some local residents and leaders. Notably, the current budget does not allocate funds for this project, though over $400 million is reportedly already set aside.
Moreover, the governor has allocated $3 million for a proposal aimed at increasing salaries for thousands of state employees. The scheme to revamp the state employee pay system carries an estimated cost of $102 million, which Sanders asserts can be offset by savings from existing job vacancies.
Concerns were raised by the leading Democrat in the House regarding the budget’s dependence on one-time funds for recurring expenses and the significant allocation for vouchers that could address other needs. House Minority Leader Andrew Collins labeled it “a missed opportunity.”