On Wednesday, the Arkansas House and Senate finished its work on identical budget measures (SB702 and HB1949) known as the Revenue Stabilization Act (RSA), which sets spending levels for the upcoming 2022 fiscal year. Final approval of the measures was completed on April 27th. The full fiscal year budget plan allows for a state spending allowance of $5.84 billion and plans to provide funding to all 4 categories of state spending (A-D). The spending plan also allows for surplus savings and tax cuts approved by the legislature this session, including language excluding from income taxes any federal Paycheck Protection Program (PPP) funds, Market Facilitation Program (MFP) funds and Coronavirus Food Assistance Program (CFAP) funds received by Arkansans.
A separate budget measure, SB375, laying out instructions for use of surplus funds also advanced through the legislature this week. It intends to set aside significant reserves for rainy day funding and allows for additional expenditures with specific guidelines for approval of use of funds. Officials anticipate a general revenue surplus of about $600 million at the end of fiscal 2021, and they expect the state's long-term reserve fund could increase to over $700 million.
More below:
https://www.arkansasonline.com/news/2021/apr/28/2-bills-to-distribute-584b-in-fiscal-22-revenue/
https://www.arkansasonline.com/news/2021/apr/27/house-senate-approve-584b-annual-budget/