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ArkansasHB10522026 Fiscal SessionHouseWALLET

AN ACT TO MAKE AN APPROPRIATION FOR STATE TURNBACK FOR COUNTIES AND MUNICIPALITIES BY THE OFFICE OF THE TREASURER OF STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2027; AND FOR OTHER PURPOSES.

Sponsored By: Joint Budget Committee

Enacted

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

State aid supports city and county budgets

For July 1, 2026, through June 30, 2027, cities get $29.372099 million in general aid and $215 million in special aid. Counties get $21.428616 million in general aid and $230 million in special aid, including highway funds and severance taxes. The law also allows up to $15 million for counties and $10 million for cities from unanticipated special revenues. Those extra revenues include mineral, oil, or gas sales or leases on federal military lands; recipients must qualify under state law. The Treasurer distributes aid under state law, including city and county allocation formulas; no direct household payment is set.

Property tax relief funding reaches counties

For July 1, 2026, through June 30, 2027, the law funds $450 million in county property tax relief distributions. The money comes from the Property Tax Relief Trust Fund and follows the state county allocation formula. An additional $2 million each goes to counties and cities under their aid formulas only with the Chief Fiscal Officer's certification. That certification must show enough money remains as of December 31, 2026, after required county reimbursements; these extra transfers exclude receipts from sales and use taxes levied before July 1, 2026. The law does not set a specific reduction in any household's property tax bill.

Short-term loans help local governments pay bills

On July 1, 2026, the Chief Fiscal Officer must request short-term loans from the Budget Stabilization Trust Fund. Loans provide up to $3.517657 million for municipal aid and $1.906079 million for county aid, limited by available funds. Eligible local governments receive the money in the same way as general revenue aid. The loans are repaid in equal monthly installments from general revenue distributions during the fiscal year ending June 30, 2027. These are local government loans, not household loans.

Unspent local aid must reach local governments

For 2026–2027, unspent county and municipal aid carries forward and must be distributed within 45 days after fiscal year-end. These payments follow state allocation formulas and are in addition to regular aid distributions. Before June 30, 2027, the agency must explain the carry-forward in writing to the state Office of Budget. That office reports to the Legislative Council by its September meeting; the agency reports fund status at least 30 days before presenting its budget request. Payments cannot exceed appropriations and must follow state purchasing, accounting, and budget rules.

Counties pay a share of prosecutor costs

From July 1, 2026, through June 30, 2027, counties share costs for deputy prosecutors who became state employees on January 1, 2000. Monthly retained amounts equal one-twelfth of 80% of the appropriation for their county salaries and fringe benefits. The Treasurer credits those amounts to the State Central Services Fund to support those salaries. Each county must pay 25% of the amount retained for it during the fiscal year ending June 30, 2024. The law does not require residents to pay directly or specify a household tax increase.

Sponsors & Cosponsors

Sponsor

  • Joint Budget Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 129 • No: 0

Senate vote • 4/28/2026

Senate Vote - Tuesday, April 28, 2026 2:34:38 PM

Yes: 35 • No: 0

House vote • 4/27/2026

House Vote - Monday, April 27, 2026 3:24:49 PM

Yes: 94 • No: 0 • Other: 1

Actions Timeline

  1. Notification that HB1052 is now Act 166

    5/1/2026House

  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/28/2026House

  3. TO BE ENROLLED

    4/28/2026House

  4. Returned from the Senate as passed.

    4/28/2026House

  5. Returned to the House as Passed.

    4/28/2026House

  6. EMERGENCY CLAUSE ADOPTED

    4/28/2026House

  7. Read the third time and passed.

    4/28/2026House

  8. Read the first time, rules suspended, read the second time and placed on the calendar.

    4/27/2026House

  9. Received from the House.

    4/27/2026House

  10. EMERGENCY CLAUSE ADOPTED

    4/27/2026House

  11. Read the third time and passed and ordered transmitted to the Senate.

    4/27/2026House

  12. Considered in the Committee of the Whole, and recommended do pass.

    4/27/2026House

  13. RULES SUSPENDED

    4/27/2026House

  14. Returned by the Committee Do Pass

    4/23/2026House

  15. REPORTED CORRECTLY ENGROSSED

    4/15/2026House

  16. Amendment No. 1 read and adopted and the bill ordered engrossed.

    4/15/2026House

  17. Placed on second reading for the purpose of amendment.

    4/15/2026House

  18. Read the first time, rules suspended, read the second time and referred to the Committee on JOINT BUDGET COMMITTEE

    4/8/2026House

  19. Filed

    4/1/2026House

Bill Text

  • HB1052 - Introduced

    4/1/2026

    PDF

  • Act Version

    PDF

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