Governor Sanders Sends Letter to Cabinet Secretaries and Department Directors Outlining Budget Expectations for Biennial Budget

LITTLE ROCK, Ark. - Governor Sarah Huckabee Sanders sent a letter to her Cabinet secretaries and department directors laying out the expectations for the 2028-2030 biennial budget. The text of the letter is below.

Dear Cabinet Secretaries and Department Directors:

Thank you for your leadership and continued support of my administration's key priorities. Through the Arkansas Forward initiative, we have kept the growth of government low and, thanks to this fiscal discipline, have cut income taxes four times, lowering our overall rate by 25%. Even still, there is more work to do as we seek to responsibly phase out our state's income tax.

To build on that success, I want to remind you of the commitment I made to the people of Arkansas and your role in carrying it out. We must do more with less: limiting the growth of government while improving efficiency at state agencies and investing in the areas of genuine need. Achieving these goals in a single budget is a great feat requiring hard work, diligence, and discipline. We have done it every year since I took office, and I am confident we can do even more in the next biennium.

For the 2028-2030 biennial budget, agencies will meet with the Department of Finance and Administration and Governor's Office staff to discuss our shared priorities. You may make requests for changes in appropriation for non-General Revenue funded programs through the Agency Request process. However, all General Revenue increases will be made exclusively through Executive Recommendations.

As you enter into this process, I ask that you take initiative and ask your leadership teams tough questions. Have you identified all savings in your agency? Are you certain your agency's dollars are being spent to their highest and best use? Are Arkansas taxpayers getting their money's worth from the programs you run? What must change to accomplish our goals? We must all work together to identify new savings and efficiencies, while ensuring the people of Arkansas are being served well.

Please make note of the following items as you prepare your budget:

• Arkansas Forward: We are making great progress through the Arkansas Forward initiative in all focus areas, having already identified at least $300 million in savings and efficiencies. The results of this initiative will drive Executive Recommendations for this biennium. Please focus closely on this initiative, which will help us deliver better, more efficient state government services at less cost.
• Identify Savings: Please work to continue to find cost savings opportunities outside the scope of Arkansas Forward. We should look for any opportunity to reduce costs while still delivering high quality services to the people of Arkansas.
• Personnel: Due to the comprehensive overhaul of the pay plan, personnel requests should be limited. Departments must discuss any potential personnel requests with the Office of Personnel Management prior to submission. Only requests that are critical to advancing the interests of our citizens and that demonstrate measurable efficiencies will be considered.

It is critical that we put forward budget requests that reflect responsible, limited government, while still fulfilling the priorities Arkansans expect from their leaders. I look forward to your plans to work collaboratively to cut costs, improve services, and make Arkansas the best state in America to live, work, and raise a family.

Sincerely,

Sarah Huckabee Sanders
Governor of Arkansas

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