Lawmakers reject request to appropriate $330 million for new 3,000‑bed prison

The Joint Budget Committee on Feb. 26 rejected a request to appropriate $330,000,000 from a restricted reserve to start a proposed new 3,000‑bed prison project for the Arkansas Department of Corrections.

The appropriation vote — to adopt the portion of the governor’s letter requesting the $330,000,000 for corrections — failed after a division and roll call; lawmakers said the committee received 14 affirmative votes when 15 were required for the appropriation to pass. The committee earlier confirmed $75,000,000 had already been appropriated for corrections work; approval of the $330,000,000 would have increased available appropriations to $405,000,000.

Committee members pressed corrections leaders and state finance officials for details on what the $330,000,000 would cover and when a firm total project cost and schedule would be available. Representative Woody Wooten asked whether the figure represented the total cost for a 3,000‑bed facility; Department of Corrections officials and the secretary of corrections said the project remains in an early phase and a full estimate is not yet available.

"This 330,000,000 that's in restricted reserve has been set aside in restricted reserve, so all we're doing is requesting to pull this down to start the process," Chad Brown, chief financial officer at the Department of Corrections, said in response to a question about the appropriation.

Secretary Lindsay Wallace and Director Dexter Payne said the corrections board had just approved a request for qualifications (RFQ) for architects and engineers and that preliminary work such as geotechnical testing is underway. Wallace said she expected qualifications to be due in early March and the board to consider a contract in May; she said the department will return to the committee with more complete cost and timeline information.

Several members—among them Senator King and Representative Wooten—said they were uncomfortable approving the larger appropriation without a project budget and a clearer plan for roads, wastewater treatment and staffing. Senator King referenced construction cost escalations in other states and warned that similar projects had exceeded early estimates.

Supporters of the appropriation described the request as a routine capital‑project appropriation step. Jim Hudson, secretary at the Department of Finance and Administration, told the committee that the appropriation request is required when a capital project is anticipated in the upcoming biennium and that approving the appropriation does not immediately release funds from the restricted reserve account; any release would require a separate approval process and, in some cases, a higher vote threshold.

The committee’s failure to adopt the appropriation means the governor’s requested authority to draft a bill to access the $330,000,000 will not proceed today. Committee members and corrections officials said they expect further questions and additional review if and when the department returns with design, cost, and staffing details.

The committee will consider other items in the governor’s capital letter separately.