LITTLE ROCK, Ark. — State Senators and Representatives of the Arkansas Legislative Council (ALC) and Joint Budget Committee came together for the first day of budget hearings which was held on Tuesday.
After five income tax reductions over the course of three years, many have been wondering how the legislature will adjust spending when they meet next year.
According to the Department of Finance and Administration, three income tax reductions have occurred under Gov. Sanders— lowering the rate from 4.4 to 3.9%. With these changes, state officials are now at a point in the year where they can set the tone for next year's budget.
"Agencies come to us what the proposed want is for their appropriations for the upcoming budget, and we just drill down into those and we ask questions about why you need this amount of appropriation. You know your spending doesn't match your appropriation," Rep. Frances Cavenaugh, (R-Walnut Ridge), said.
On Tuesday, state summaries presented by committee representatives displayed detailed numbers of funding and percentages— showing where money is coming from and where it could go next year.
This month, state boards, commissions, and agencies will face questions from senators and representatives including analysis of discrepancies and reiterations of already proposed budgets.
Rep. Cavenaugh was one of many officials who were vocal during Tuesday's first session as she said her asking the drilling questions leads to seeing if there's a way to better use those.
"[We can see if] we get a better bang for our buck than just sitting in there drawing interest," she described.
"So there was a difference between what was being presented to us in one area versus what an agency actually had. So when we had those discrepancies in the numbers, then we had to begin, as legislators, to ask for questions," said Rep. Cavenaugh. "Why and why is that happening? Sometimes it can be just as simple as a clerical error or a misunderstanding. And then on the other end, it could be somebody trying to hide something. So you're always asking those questions."
The session featured comments from members of the Athletic Committee, the Department of Labor and Licensing, and the Department of Health.
Rep. Cavenaugh explained how presentations like these give them a better idea of whether or not state commissions are spending more or less of the funds they're allocated.
"The Athletic Commission actually is spending more than what they're bringing in on the revenue," Rep. Cavenaugh said. "So our question is, why is that and how is that?"
As Arkansans continue to keep an eye out for any additional income tax cuts, its the behind the scenes work that also provides communities with the answers, and relief, they need.
"As we continue to reduce income taxes, we have to take hard looks, and if we're going to continue to do that and give back money to Arkansans that need it in their pockets, rather than in state government.," Rep. Cavenaugh said.