LITTLE ROCK – In 2008, almost 70% of Arkansas voters approved the proposed Constitutional Amendment which created the Arkansas Legislature’s Fiscal Session. Voters decided a fiscal session would allow for greater legislative oversight and the ability to make necessary changes more readily because the national or state economy can change quickly. This year’s upcoming fiscal session will convene on Wednesday, April 8, 2026. The fiscal session, which focuses on the state budget, lasts up to 30 calendar days but may be extended by 15 days, if necessary.
The fiscal session is primarily focused on appropriations for the “big six” state departments, which include the budgets pertaining to Department of Education, Department of Human Services, Department of Health, Department of Transportation, the Division of Corrections and Department of Public Safety. Overall, there are 15 cabinet- level state departments as well as additional boards and commissions which all have budgetary needs.
Governor Sarah Huckabee Sanders is set to give her updated budget proposal on March 3, 2026, for fiscal year 2027 (which begins on July 1, 2026). Budget hearings are scheduled Wednesday, March 4 through Friday, March 6, 2026. These hearings provide legislators with the opportunity to closely examine agency requests, ask questions, and ensure taxpayer dollars are spent responsibly and effectively.
Following the hearings, pre-filing of legislation will begin on Monday, March 9, 2026. During a fiscal session, only appropriation-related bills may be pre-filed. Any other bills outside the scope of fiscal matters can be brought before the members of the General Assembly only if approved by a two-thirds vote in each chamber.
The fiscal session will focus on general revenue and increases like those we have seen in the last few years such as funding education, corrections and public safety, healthcare, and maternal care. Additionally, tax cuts will probably be on the agenda.
Arkansas continues to maintain a balanced budget. Arkansas Code requires the Secretary of Department of Finance and Administration (DFA), who is the Chief Fiscal Officer of the State, to always be aware of the actual and estimated funds available to ensure that they are sufficient to maintain the State on a sound financial basis without incurring a deficit. There are also requirements for the executive branch to report to the legislative branch on a regular basis regarding the status of the State’s finances.
According to DFA Secretary, James Hudson, “the FY 2026 forecast is expected to fully fund the Revenue Stabilization Law and provide a surplus of $334.4 million.” The department makes timely adjustments to adjust the forecast and budgets if conditions warrant. Unallocated or surplus funds from general revenue are placed into the revenue allotment reserve fund. The General Assembly then determines how the funds will be spent. This general revenue one-time funding source is rarely used to finance general operation appropriations.
