ArkansasHB11022025 Regular SessionHouse

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, 2026; AND FOR OTHER PURPOSES.

Sponsored By: Joint Budget Committee

Enacted

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

State funding for cities and counties

For July 1, 2025, through June 30, 2026, Arkansas authorizes state aid distributed by the State Treasurer. Cities get funding authority for $215 million in special revenues and $29.372099 million in general revenues. Counties get $230 million in special revenues and $21.428616 million in general revenues, including highway funds and severance taxes. Another $15 million for counties and $10 million for cities covers unexpected special revenues allocated by law. These receipts include mineral, oil, and gas sales or leases on federal military lands; no direct household payment is established. Spending must follow state purchasing and budget laws, budget-manual purposes, and accompanying legislative and executive recommendations.

County funding for property tax relief

For July 1, 2025, through June 30, 2026, the law authorizes $300 million for statewide real property tax relief. The State Treasurer distributes this money from the Property Tax Relief Trust Fund to counties. This provision does not set an individual homeowner’s tax reduction or explain how to calculate it.

Extra local aid depends on balances

For July 1, 2025, through June 30, 2026, the law provides $2 million each for cities and counties. These Property Tax Relief Trust Fund transfers require enough money after required county reimbursements, certified by the Chief Fiscal Officer. Enough money must remain on December 31, 2025; receipts from sales and use taxes levied before July 1, 2025, cannot be transferred. Counties receive shares under the formula in §19-5-602(c). For cities, the appropriation cites §19-5-601(c), but the special distribution rule cites §19-5-601(b).

Unused local aid must be distributed

Unused County Aid and Municipal Aid line-item funds must carry forward and be distributed within 45 days after fiscal year-end. These payments use the formulas in §§19-5-601 and 19-5-602 and add to regular aid. Before June 30, 2026, the agency must give the state budget office written reasons for carrying money forward. The budget office must report amounts and details to the Arkansas Legislative Council by its September meeting. The agency must submit its report and project update at least 30 days before presenting its budget request. Budget manuals must include the required information or state that the agency did not comply.

Counties pay a share of prosecutor costs

For July 1, 2025, through June 30, 2026, counties must help pay for deputy prosecutors who become state employees. Each county owes 25% of the amount retained for it for the fiscal year ending June 30, 2024. The State Treasurer credits retained money to the State Central Services Fund. The amount varies by county; the law does not set a direct household charge.

Local cash-flow loans require monthly repayment

On July 1, 2025, the Chief Fiscal Officer must request temporary loans from the Budget Stabilization Trust Fund. Available money limits loans to $3.517657 million for the Municipal Aid Fund and $1.906079 million for the County Aid Fund. The Treasurer distributes the money using the general-revenue distribution rules. Repayment reduces general-revenue distributions in equal monthly installments during the fiscal year ending June 30, 2026. This authority is in addition to other loans allowed by law.

Sponsors & Cosponsors

Sponsor

  • Joint Budget Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 359 • No: 1

Senate vote • 4/7/2025

Senate Vote - Monday, April 7, 2025 4:08:28 PM

Yes: 35 • No: 0

House vote • 4/3/2025

House Vote - Thursday, April 3, 2025 4:18:09 PM

Yes: 93 • No: 1 • Other: 1

House vote • 1/28/2025

House Vote - Tuesday, January 28, 2025 1:52:00 PM

Yes: 98 • No: 0

Senate vote • 1/23/2025

Senate Vote - Thursday, January 23, 2025 11:23:47 AM

Yes: 33 • No: 0

House vote • 1/22/2025

House Vote - Wednesday, January 22, 2025 1:52:07 PM

Yes: 100 • No: 0

Actions Timeline

  1. Notification that HB1102 is now Act 541

    4/10/2025House
  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/8/2025House
  3. TO BE ENROLLED

    4/7/2025House
  4. Returned from the Senate as passed.

    4/7/2025House
  5. Returned to the House as Passed.

    4/7/2025Senate
  6. EMERGENCY CLAUSE ADOPTED

    4/7/2025Senate
  7. Read the third time and passed.

    4/7/2025Senate
  8. Read the first time, rules suspended, read the second time and placed on the calendar.

    4/3/2025Senate
  9. Received from the House.

    4/3/2025Senate
  10. EMERGENCY CLAUSE ADOPTED

    4/3/2025House
  11. Read the third time and passed and ordered transmitted to the Senate.

    4/3/2025House
  12. Considered in the Committee of the Whole, and recommended do pass.

    4/3/2025House
  13. RULES SUSPENDED

    4/3/2025House
  14. Returned by the Committee Do Pass

    4/2/2025House
  15. REPORTED CORRECTLY ENGROSSED

    3/12/2025House
  16. Amendment No. 1 read and adopted and the bill ordered engrossed.

    3/12/2025House
  17. Placed on second reading for the purpose of amendment.

    3/12/2025House
  18. Re-referred to the Committee on JOINT BUDGET COMMITTEE

    1/28/2025House
  19. Return from Governor's office as requested

    1/28/2025House
  20. Motion to Recall House Bill 1102 from the House. Motion carried and letter sent.

    1/27/2025Senate
  21. Correctly enrolled and ordered transmitted to the Governor's Office.

    1/23/2025House
  22. TO BE ENROLLED

    1/23/2025House
  23. Returned from the Senate as passed.

    1/23/2025House
  24. Returned to the House as Passed.

    1/23/2025Senate
  25. EMERGENCY CLAUSE ADOPTED

    1/23/2025Senate

Bill Text

  • HB1102 - Introduced

    1/13/2025

  • Act Version

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