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What Arkansans need to know about Gov. Sanders' proposed $300 million state budget for 2025

Gov. Sanders presented her balanced budget plans to legislators, emphasizing education, maternal health, public safety and government efficiency as key components.

LITTLE ROCK, Ark. — On Thursday, Gov. Sarah Huckabee Sanders' presented her balanced budget plans to the Arkansas legislative council joint budget committee.

The governor called for increasing the state's budget by nearly 3%, or $182.5 million, in the fiscal year that begins July 1. Gov. Sanders detailed the budget plan to lawmakers ahead of next year's legislative session, which begins Jan. 13.

"I look forward to working with our legislature to increase spending by only 2.89%," Gov. Sanders said. "The added funding is directed toward areas we have all agreed are our priorities: education, maternal health, public safety and government efficiency." 

The governor's proposal calls for an increase in funding for the state's Education Freedom Accounts (EFA), proposing $90 million in additional funding which she believes would give more Arkansans a chance to have access to the full EFA amount. 

"This balance balanced budget proposes $90 million in additional funding for the EFA program, [from] $90 million to $187 million to ensure all Arkansas families have access to the full EFA amount," Gov. Sanders said. 

At the meeting on Thursday, Republican State Rep. Jim Wooten presented the governor with concerns: inquiring as to how this will impact public schools?

"Can you explain to me how we take over $400 million out of the state funding and it not effect court ordered adequacy and education," Rep. Wooten asked the governor.

On the opposing end, others like Finance and Administration Secretary Jim Hudson, spoke up to defend the governor's plan. Hudson posed that the vouchers and public schools are being funded from different sources.

While education was a big talker amongst legislators on Thursday, the governor's plan also focused on maternal health. She said that her plan will bring programs that "actually matter to the people."

"This budget includes $13 million for Medicaid to help fund our maternal health programs, and an additional $100 million in set aside funding for Medicaid sustainability. I know all of us want to find real solutions, not headline grabbing programs that don't actually solve the problem," Gov. Sanders said. 

Lastly, governor's plan accounted for the state's new employee pay plan.

Earlier this month the governor proposed $3 million for a plan to pay thousands of state employees, focusing on key jobs such as: nurses, state troopers, social workers, and correction officers. 

"The vast majority of this plan's $102 million commitment comes from existing funding streams, but in this budget, we are also proposing $3.15 million in new funding for pay raises for our state's dedicated frontline workers," Gov. Sanders said. 

The budget proposal forecasts that the state will end the coming fiscal year with a surplus of nearly $300 million. Finance officials have said they expect Arkansas to end the current fiscal year with a surplus of about $280 million.

   

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