There are growing concerns that the Arkansas state budget proposed for 2025 will cause real pain for the very people who need help the most from the state. It all comes after Governor Sarah Huckabee Sanders kicked off the Arkansas House and Senate fiscal session last week. That’s when Sanders renewed her intention to strictly limit spending with the ultimate goal of phasing out the state income tax.
The governor’s objectives have caught the attention and concern of members of the Arkansas Coalition for Strong Families. As reported by Josie Lenora with Little Rock Public Radio, Keesa Smith, the executive director of the Arkansas Advocates for Children and Families, described why they are so worried. “The [2025 proposed] budget has a 1.76 [%] increase over what it was last year, which amounts to a $109 million increase to our state budget. Unfortunately, this increase is far below what’s needed to even keep up with inflation.” Smith says to keep up with inflation lawmakers would need to increase the proposed budget by at least 5 to 5.7%, based on projections by the consumer price index.
Yet, in a March 6 letter to the Joint Budget Committee of the legislature on the state’s budget, Sanders wrote, “This budget’s greatest accomplishment is its size: only a 1.76% increase over last fiscal year.” She explained that the increase is far below the 3% year-over-year budget increase the state has typically averaged. The governor also stated, “Arkansans want their tax dollars spent wisely, not wastefully. This budget invests their money in what matters: schools, police, police, parks and more. The 2025 fiscal year begins July 1.
