Proposed Budget - Fiscal Year 2027
On March 4, Arkansas Governor Sarah Huckabee Sanders released a $6.69 billion general revenue budget proposal for fiscal 2027. This represents an increase of $194.5 million, or 3.0 percent, over fiscal 2026. Gross general revenues are projected to be $8.67 billion in fiscal 2027, an increase of $232.0 million or 2.8 percent from fiscal 2026. After required deductions and refunds, net available revenues are projected at $7.02 billion which is an increase of 2.7 percent, or $187.0 million, over fiscal 2026.
Proposed Budget Highlights
The proposed budget focuses on the governor’s top priorities of limiting the growth of government while still investing in priority areas and allowing the state to responsibly phase out the state income tax. Recommendations include the following:
Education
- Proposes additional funding for the LEARNS Education Freedom Accounts program for this year and sets aside funding for future growth of the program.
- Increases funding for higher education.
Health
- Directs additional funds for Medicaid sustainability.
Public Safety
- Allocates funds for drug task forces.
- Directs funds to the Department of Corrections for the agency’s medical contract.
Other
- Allocates funds to the Department of Public Safety, Corrections, and Agriculture for the cost of the new employee pay plan implemented last year.
- Increases funding to the Inspector General’s office to support addressing and improving the state’s SNAP error rate.
- Provides funds for the 10:33 Initiative which is focused on ending welfare dependency and moving people from crisis to career.
- Proposes reimplementing categories of spending in the budget.