Senate Revenue & Tax panel approves transfer of $710.6 million to restricted reserve

The Senate Revenue & Tax committee on Thursday approved the Senate version of House Bill 1004 to transfer $710,612,508 from the general allotment reserve into a restricted reserve account intended to serve as a buffer during severe economic downturns.

"What we're doing is just transferring $710,612,508 from the general reserve, or general allotment reserve account into a restricted reserve account," Chairman Jimmy Hickey said while presenting the measure. Hickey described the bill as a companion to the income tax proposal and said it was an identical version of the House measure previously heard in committee and on the floor.

Hickey said the restricted fund is not intended to pay for tax cuts. "Not gonna be used for the tax cut themselves," he said. He added that the money could be released only under strict conditions: it would require a two-thirds vote of the Arkansas Legislative Council and would be triggered only after a written request from the executive branch through DFNA, as stated in the transcript.

There were no questions from committee members and no public speakers for or against the bill. Chairman Hickey moved that the committee give the measure a "do pass" recommendation; Senator Kroll seconded the motion. The committee approved the recommendation by voice vote, and the chair announced the motion carried.

The committee's chair said members will need to meet again to consider related bills on the calendar and to coordinate with the House version of the tax legislation. With no further business, the panel adjourned.

Next steps: the committee will reconvene at a later date to consider the remaining tax-related measures on its calendar; a date was not specified in the transcript.