Bills that would increase the state's general revenue budget by $172.8 million to nearly $5.63 billion in the coming fiscal year sailed through the Legislature's Joint Budget Committee on Tuesday.
Most of the increased general revenue would go to the Department of Human Services, particularly for the state's Medicaid program, in fiscal 2019 that starts July 1, under the proposed Revenue Stabilization Act. The act would distribute general revenue to state programs in fiscal 2019, which starts July 1.
The identical bills are Senate Bill 122 and House Bill 1137 and mirror Gov. Asa Hutchinson's proposed budget that he presented to lawmakers in January at the start of the budget committee's hearings.
Senate President Pro Tempore Jonathan Dismang, R-Searcy, said in an interview that "there has not been any type of consolidated pushback against the governor's proposal since he released his balanced budget, so I don't think it's any big surprise, that, for the most part, we are in agreement on the spending of state tax dollars."
UAMS officials "don't have a specific proposal" to seek one-time funds at this point, said UAMS spokesman Leslie Taylor.
Sen. Larry Teague, D-Nashville, a co-chairman of the budget committee, said in an interview that the proposal reflects what the Republican governor wanted largely because "you are taking [about] $60 million out of that [to set aside as surplus funds] and that didn't leave much room to play around with it."
Dismang said the proposal wouldn't increase the $86.4 million general revenue budget for the University of Arkansas for Medical Services, "partly because UAMS is still evaluating themselves, trying to ensure that they are maintaining their mission, while being good stewards of tax dollars."
UAMS announced layoffs of 258 employees in January because of a larger-than-expected deficit.
[NEW: Sign up for the Arkansas politics and legislative updates email newsletter]
"Until they get to a final conclusion of where they need to be, it is very hard for us to say what additional amount is needed. I wouldn't be surprised that, if a request is made, that some one-time money be used until they get into a more stable position to know where they need to be moving forward," Dismang said.
In voice votes, the committee advanced the bills to the Senate and House, after first rejecting an amendment proposed by Sen. Will Bond, D-Little Rock, to increase the Department of Community Correction's general revenue budget by $1.2 million more than what the bills would provide. The money would be used to cover the costs of most of 30 more parole and probation officers, Bond said.
The measures would increase the department's budget by $1.7 million to $87.9 million.
"We haven't given up yet on funding the additional parole officers," Bond said afterward.
The proposed act would distribute $5.51 billion to programs in Category A, including $15.8 million for the rainy-day fund and $5.9 million to the Medicaid trust fund, and the next $115.8 million to programs in Category B. Category A has a higher priority than Category B. In the event of a shortfall, Category B items would be cut back first.
The proposal would set aside what Hutchinson considers to be $63.9 million in surplus funds in fiscal 2019.
Of that amount, $47.9 million would be placed in a restricted reserve fund for extraordinary needs in the event of an economic downturn and for future tax cuts. A three-fifths vote of the Joint Budget Committee or Legislative Council would be required to transfer money out of the fund.
The remaining $16.9 million in surplus funds would be earmarked to help match federal highway funds.
The Department of Human Services' general revenue budget would grow by $142.7 million to $1.668 billion. That includes a $137.8 million increase, to $1.251 billion, to the Medicaid program and a $7.3 million increase, to $123.9 million, for the Division of Children and Family Services.
The proposed budget would increase the public school fund by $1.3 million to $2.194 billion. About $48 million in increased funds will be provided to public schools from other funding sources. The proposal also would increase general revenue funding by $3.2 million to $41.8 million for the state's share of public school buildings.
The Department of Correction would get a $3.5 million increase to $353.1 million and general-revenue assistance for county jail reimbursement also would increase by $4 million, to $18.2 million. The budget also has an $8 million increase for performance-based raises, for funding of $24 million.
General revenue for two- and four-year public colleges would increase by $12 million to $745.6 million, with $9.4 million of the increase to implement the new higher education productivity-based funding formula. The other $2.6 million increase would go to Eastern Arkansas Community College, for a total of $8.4 million. The college merged with Crowley's Ridge Technical Institute.
General revenue would increase for these four-year colleges based on the new funding formula:
• $4.95 million increase, to $122.4 million, to the University of Arkansas, Fayetteville.
• $693,692 increase, to $32.9 million, for Arkansas Tech University in Russellville.
• $596,042 increase, to $53.7 million, for the University of Central Arkansas in Conway.
• $487,971 increase, to $16 million, at Southern Arkansas University in Magnolia.
• $148,778 increase, to $25.5 million, at the University of Arkansas at Pine Bluff.
• $95,730 increase, to $18.9 million, at Henderson State University in Arkadelphia.
RELATED ARTICLES
http://www.arkansas…">Medicaid expansion funding clears Senate http://www.arkansas…">529-savings leeway delays funding bill on treasurer's office http://www.arkansas…">Senate vote on SB30 http://www.arkansas…">Capitol news in brief
A Section on 03/07/2018