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Committee approves moving $710.6 million surplus into restricted reserve
Summary
Senate Bill 1 would transfer roughly $710.6 million from general reserve funds into a restricted account requiring a two‑thirds vote of the Arkansas Legislative Council to access; sponsor said the measure is an "insurance policy" for future downturns and not a funding source for the tax changes.
Senate Bill 1, presented to the Revenue & Tax committee by Senator Jimmy Hickey, would transfer approximately $710,612,508 from the general reserve allotment fund into a restricted reserve account that can be accessed only by a two‑thirds vote of the Arkansas Legislative Council.
Jimmy Hickey told the committee the move is intended as an "insurance policy" to preserve funds for state services in the event of a recession or major revenue shortfall. Hickey explicitly stated these restricted funds were not being used to pay for the tax cuts proposed in Senate Bill 8.
No members of the public signed up in the record to speak for or against SB 1 at the time of presentation. After sponsors closed, a motion to report SB 1 "do pass" was made, seconded and carried by voice vote; the transcript does not include a roll‑call tally.
The committee's action advances SB 1 for further legislative consideration; any conditions or changes to the restricted reserve mechanism will be addressed in subsequent committee work or floor debate.
