by Michael R. Wickline, Arkansas Democrat-Gazette
January 15, 2022
Arkansas Gov. As a Hutchinson on Tuesday proposed a $194.6 million increase in the state’s general revenue budget to $6.04 billion in the fiscal year starting July 1, with most of the increase for public schools and human services programs.
The Republican governor said his proposed fiscal 2023 budget would fund initiatives to reduce the waiting list for the developmentally disabled to receive services, make the entry-level salaries of state troopers more competitive in the South, and provide sufficient state funding for the state’s health insurance plan for current and retired public school employees.
Hutchinson’s proposal envisions leaving a $174.4 million surplus.
His successor as governor will take office in January 2023 — about midway through fiscal 2023.
The governor said his proposal would increase the budget by 3.3% over the current budget, and that’s higher than what he would prefer.
But the needs of the state and state government’s healthy financial position support the increase, he told state lawmakers during their first day of budget hearings in advance of the fiscal session that starts Feb. 14. The budget hearings are scheduled to be held through Thursday and then from Jan. 18-20.
Hutchinson said the projected surplus would provide “a cushion that is needed in this time of economic fluctuations.” He noted that the state also has $1.2 billion in its catastrophic reserve fund, “which gives us an additional cushion.” The current budget, for fiscal 2022, totals $5.84 billion.
The individual and corporate income tax cuts enacted in the General Assembly’s Dec. 7-9 special session are projected by the state Department of Finance and Administration to reduce general revenue by $135.25 million in fiscal 2022 and $307.4 million in fiscal 2023.
Legislative leaders on Tuesday generally said they didn’t initially find much to object to in the governor’s proposed budget, but they want more details on various proposals.
Senate President Pro Tempore Jimmy Hickey, R-Texarkana, said the governor’s proposal is prudent and most of the proposed increases would be supported by most Arkansans.
“I sure didn’t hear a lot of grumbling,” said state Rep. Lane Jean, R-Magnolia, who is a co-chairman of the Joint Budget Committee.
Senate Democratic leader Keith Ingram of West Memphis said, “The devil is in the details.”
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