(LITTLE ROCK) Also Wednesday, the House and Senate sent the governor bills that would distribute the state’s proposed general revenue budget of $5.75 billion to various programs in the fiscal year starting July 1.
In a 35-0 vote, the Senate approved House Bill 1876 — the Revenue Stabilization Act for fiscal 2020.
In an 87-5 vote, the House approved identical legislation — Senate Bill 597. Republican Reps. Joe Cloud of Russellville, Mickey Gates of Hot Springs, Robin Lundstrum of Elm Springs, Austin McCollum of Bentonville and Clint Penzo of Springdale voted against the legislation.
The bills would distribute $124.1 million more in general revenue in fiscal 2020 than the fiscal 2019 budget. Most of the increase in fiscal 2020 would go to the Department of Human Services, which would get a $68.2 million increase to $1.73 billion, and the Public School Fund, which would get a $30.7 million increase to $2.25 billion.
The cumulative impact of tax cut and increase measures enacted in this year’s session are projected to reduce general revenue by $9.3 million in fiscal 2020, $63.7 million in fiscal 2021, $102.9 million in fiscal 2022 and then $105.4 million in fiscal 2022, according to state Department of Finance and Administration spokesman Scott Hardin.
Act 182 will phase in a reduction in the state’s top individual income tax rate from 6.9 percent to 5.9 percent over a two-year period, starting Jan. 1 of next year. When fully implemented, it will reduce revenue by $97 million, according to the finance department.