TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION BILL TO PROVIDE ADDITIONAL FUNDING FOR COUNTIES USING CERTAIN STATE TAX REVENUES; AND TO CREATE THE EQUAL DISTRIBUTION COUNTY TURNBACK FUND.
Summary
SR6 is a Senate resolution authorizing Senator King to introduce a nonappropriation bill that would create the Equal Distribution County Turnback Fund and direct a portion of state general revenues into that fund. The underlying bill would earmark the first $150 million in certain annual tax receipts to the new fund, and once the fund reaches that threshold, the Treasurer of State would distribute $2 million to each county every fiscal year.
The bill also specifies how counties must use the money. Ninety percent of each county’s distribution would be reserved for infrastructure and equipment, including county roads and water and sewer infrastructure, while the remaining 10% would support fire protection, law enforcement, or community projects. The measure includes an emergency clause and would take effect on July 1, 2026, reflecting the sponsor’s view that counties need immediate financial relief.
Impact
If enacted, the bill would amend Arkansas Code § 26-52-107 to divert the first $150 million in annual general revenues from the State Apportionment Fund to the new Equal Distribution County Turnback Fund. It would create a new state miscellaneous fund on the books of the Treasurer of State, Auditor of State, and Chief Fiscal Officer, and it would establish a recurring statewide county aid distribution formula. Counties would gain a dedicated source of state funding, but the bill would also reduce the amount of general revenues available for other state treasury purposes and Revenue Stabilization Law allocations.
Sentiment
The bill appears to have been framed positively as a response to county fiscal stress, with the text emphasizing rising costs and the need to preserve essential local infrastructure and services. The emergency clause suggests urgency and a desire for immediate implementation. However, the measure ultimately died in the Senate at sine die adjournment, indicating that it did not secure final legislative approval despite the stated policy rationale.
Contention
The main point of contention is likely the diversion of the first $150 million in general revenues away from the State Apportionment Fund and into a county-specific fund, which could affect state budget priorities and the distribution of general revenue to other programs. Another likely issue is the funding trigger and equal-per-county distribution formula, which may be viewed as beneficial for county equity but potentially insensitive to differences in county size, need, or existing revenue capacity. The bill text itself does not include recorded committee debate or votes, so these concerns are inferred from the structure of the proposal and its fiscal implications.