Gov. Sanders asks agency leaders for budget savings recommendations

Arkansas Gov. Sarah Sanders asked cabinet secretaries and department leaders to provide cost savings ideas in a letter sent Thursday (June 6). The governor also said personnel changes would continue to need an executive recommendation.

The letter to cabinet officials addressed expectations for the 2025-2027 biennial budget, which will be completed in the regular session of the Arkansas General Assembly next year.

“Thank you for your leadership and continued support of my administration’s key priorities. We have made progress in reducing government spending and returning cost savings to the people of Arkansas, but I know we still have more work to do,” Sanders said.

“As we look forward to my first biennial budget as Governor, I want to remind you of the promise I made to the people of Arkansas and charge you with carrying it out. We must limit the growth of government and improve efficiency at state agencies while still investing in the areas of greatest need,” she added.

Sanders outlined the traditional process for agency budgeting, which starts with requests and priorities through the Department of Finance and Administration and her office’s budget arm. Sanders said any general revenue increase request would have to be done “exclusively through Executive Recommendation.”

“My expectation is that each agency and its leadership take initiative during this budget process to deliver on our shared promises to the people of Arkansas. I know all of you are Arkansas taxpayers. Do you believe your tax dollars are spent wisely? Are there any programs from which you do not get your money’s worth? You should put your focus on any such programs during this budget process,” Sanders said.

She highlighted three areas of focus for budget preparation:

“• Arkansas Forward: We are making great progress through the Arkansas Forward initiative in all focus areas: IT, state procurement, real estate, personnel, organizational effectiveness, and vehicle assets. The results of this initiative will drive Executive Recommendations for this biennium. Please continue to focus closely on this initiative which will help us deliver better, more efficient state government services at less cost.
• Identify Savings: I expect state agencies to continue to find cost savings opportunities outside the scope of Arkansas Forward. Please work to reduce costs throughout your agency while still delivering quality services to the people of Arkansas.
• Personnel: Agencies should not request any personnel changes. Personnel items will be reviewed as part of the Arkansas Forward initiative. Any personnel changes will be done exclusively through Executive Recommendation.”

Sanders and the Arkansas legislature recently passed a $6.3 billion state budget for the 2024-2025 fiscal year, which starts July 1, 2024. The overall spending increase of 1.9% from the previous year was less than recent hikes in state budgeting.

Sanders is expected to call a special session the week of June 17th to address tax cuts and one unfinished appropriation bill for the Arkansas Game & Fish Commission.

Arkansas has an expected $708.1 million budget surplus in the current fiscal year, which ends June 30, 2024.