Arkansas

Arkansas

Budget Cycle*
Annual/Biennial

Governor Submits Budget
November

Fiscal Year Begins
July 1
 
Governor Signs Budget 
January/April

Budget Links

FY2025 (enacted)
FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020-2021 (enacted)


*Arkansas practices a hybrid approach, recommending and reviewing budgets on a biennial basis but enacting appropriations before each fiscal year.

Enacted Budget – Fiscal Year 2025

On May 3, Arkansas Governor Sarah Huckabee Sanders signed the state’s budget bill for fiscal 2025. The budget totals $6.3 billion, a 1.76 percent increase from fiscal 2024 levels. Fiscal 2025 estimated gross general revenues are $8.7 billion while net available general revenues are $7.1 billion, an increase of $165.0 million, or 2.4 percent, from fiscal 2024 levels. The revenue forecast is expected to fully fund the budget and provide a surplus of $763.7 million. 

The majority of the budget increase will go towards education including a $65.8 million increase to the Educational Freedom Account Program, $34.2 million to support the minimum $50,000 yearly wage for teachers, and a $4.1 million increase for Career and Technical Education. 

Proposed Budget - Fiscal Year 2025

On March 6, Arkansas Governor Sarah Huckabee Sanders released a $6.31 billion general revenue budget proposal for fiscal 2025. This represents an increase of $109 million, or 1.76 percent, over fiscal 2024. Gross general revenues are projected to be $8.2 billion in fiscal 2025, a decrease of $37.6 million or 0.5 percent from fiscal 2024. After required deductions and refunds, net available revenues are projected at $6.69 billion which is an increase of 3.8 percent, or $245.5 million, over fiscal 2024. The proposed budget projects a surplus of $376.7 million for fiscal 2025. 
 


Proposed Budget Highlights 

The proposed budget delivers on the governor’s priorities of limiting the growth of government and improving efficiency while still investing in the areas of greatest needs. Recommendations include the following: 

 

Education

  • Provides an additional $100 million to support funding of the LEARNS act to:
    • Raise starting teacher pay to $50,000.
    • Increase funds for the state’s Education Freedom Accounts.
    • Invest in literacy coaches statewide.
  • Directs an additional $2.0 million for the University of Arkansas – Pine Bluff’s land grant matching program bringing the state’s total contribution to the program to $5.8 million.
  • Allocates an additional $4.0 million to career and technical education.
  • Proposes $4.5 million to fund a sustainable building maintenance program revolving loan program for the state’s higher education institutions in fiscal 2025.

Public Safety

  • Proposes a $3.8 million increase to the Arkansas State Police to fund an additional state trooper school allowing the state to renew the ranks of state police and keep Arkansas safe.
  • Increases funding for the Division of Correction by $536k.

Other

  • Provides $730k to the Department of Agriculture for county fairs.
  • Increases the Department of Human Services budget by $4.4 million.