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State Capitol Week in Review
Terry Rice
LITTLE ROCK – The legislature completed the 2025 regular session after approving a balanced budget, increasing public school funding, making higher education more accessible and improving maternal health care.
State government spending will be about $6.5 billion next fiscal year. That is a 2.89 percent increase over this year. The increase reflects economic growth in Arkansas because tax rates have not gone up.
The Public School Fund is the largest single expenditure made by the state every year. State aid to public schools will increase by $161.5 million. It is about $2.5 billion and will be distributed according to a formula that takes into account student enrollment. The foundation funding amount is going up from $7,771 to $8,162 per pupil. School districts get additional funding for every student from low-income families and students with special needs.
The governor proposed and the legislature approved significant changes in higher education. The law is called ACCESS, an acronym for acceleration, common sense, cost, eligibility, scholarships and standardization.
The new law streamlines the application process and increases the number of college entrance exams that students take for admission. Transferring from one state college to another will be easier.
It provides students more opportunities to earn college credits while still in high school. It provides incentives for colleges to teach skills in demand by industry.
Academic Challenge Scholarships will pay $2,000 during the freshman, up from $1,000.
Act 140 will improve maternal health care in Arkansas, especially in areas where existing medical services are lacking. Known as the “Healthy Moms, Healthy Babies Act,” it changes Medicaid regulations to make prenatal care more accessible in a couple of ways.
It establishes presumptive eligibility for pregnant women who apply for Medicaid. This means they will get immediate prenatal care, while they’re waiting for a full application to be processed. It authorizes Medicaid to reimburse doulas and community health workers, including visits to the pregnant woman’s home if the visit is related to prenatal or postpartum care.
Act 122 requires all school districts to enact policies that restrict cell phone usage by students. It’s called the “Bell to Bell, No Cell Act.” Its purpose is twofold. First, it removes distractions from the classroom that are hindering students academically. Secondly, we hope it will improve the mental and emotional health of young people who spend too much time on social media.
Studies indicate that the rates of suicide and depression are significantly higher among teenagers who spend lots of time on social media.
The legislature also enacted new laws to protect children from strategies used by social media that are designed to encourage suicide and addictive or compulsive behavior. A law enacted two years ago is held up in federal court because social media companies challenged it. The new law is written to satisfy judicial questions raised in that lawsuit.
The legislature voted to increase the annual homestead property tax credit by $100, raising it from $500 to $600, and to completely eliminate the state sales tax on groceries. The first measure will save homeowners $57 million a year. The repeal of the grocery tax will save Arkansans $11 million a year.
State government spending will be about $6.5 billion next fiscal year. That is a 2.89 percent increase over this year. The increase reflects economic growth in Arkansas because tax rates have not gone up.
The Public School Fund is the largest single expenditure made by the state every year. State aid to public schools will increase by $161.5 million. It is about $2.5 billion and will be distributed according to a formula that takes into account student enrollment. The foundation funding amount is going up from $7,771 to $8,162 per pupil. School districts get additional funding for every student from low-income families and students with special needs.
The governor proposed and the legislature approved significant changes in higher education. The law is called ACCESS, an acronym for acceleration, common sense, cost, eligibility, scholarships and standardization.
The new law streamlines the application process and increases the number of college entrance exams that students take for admission. Transferring from one state college to another will be easier.
It provides students more opportunities to earn college credits while still in high school. It provides incentives for colleges to teach skills in demand by industry.
Academic Challenge Scholarships will pay $2,000 during the freshman, up from $1,000.
Act 140 will improve maternal health care in Arkansas, especially in areas where existing medical services are lacking. Known as the “Healthy Moms, Healthy Babies Act,” it changes Medicaid regulations to make prenatal care more accessible in a couple of ways.
It establishes presumptive eligibility for pregnant women who apply for Medicaid. This means they will get immediate prenatal care, while they’re waiting for a full application to be processed. It authorizes Medicaid to reimburse doulas and community health workers, including visits to the pregnant woman’s home if the visit is related to prenatal or postpartum care.
Act 122 requires all school districts to enact policies that restrict cell phone usage by students. It’s called the “Bell to Bell, No Cell Act.” Its purpose is twofold. First, it removes distractions from the classroom that are hindering students academically. Secondly, we hope it will improve the mental and emotional health of young people who spend too much time on social media.
Studies indicate that the rates of suicide and depression are significantly higher among teenagers who spend lots of time on social media.
The legislature also enacted new laws to protect children from strategies used by social media that are designed to encourage suicide and addictive or compulsive behavior. A law enacted two years ago is held up in federal court because social media companies challenged it. The new law is written to satisfy judicial questions raised in that lawsuit.
The legislature voted to increase the annual homestead property tax credit by $100, raising it from $500 to $600, and to completely eliminate the state sales tax on groceries. The first measure will save homeowners $57 million a year. The repeal of the grocery tax will save Arkansans $11 million a year.
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