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Committee backs redirecting funds freed by UAMS/NCI payoff to food‑security reserve and two‑year GME startup

Arkansas Senate Revenue & Tax Committee · March 29, 2023
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Summary

Sponsors said payments freeing the UAMS/NCI project would allow creation of a restricted reserve to address food insecurity and public‑health needs and to fund a two‑year startup of a graduate medical education program; committee approved SB479 as amended by voice vote.

Senate Bill 479, as amended, won committee approval after sponsors framed it as a re‑allocation of resources freed once the UAMS/NCI project is fully funded.

A sponsor told members that funds previously directed by the medical‑marijuana special‑privilege tax to support the NCI project could be redirected once that project is paid off. The committee was told the redirected funds would be placed into a newly created restricted reserve to address two priorities identified for general agreement: co‑payment support for reduced‑lunch students and start‑up funding for a graduate medical education (GME) program.

On estimated dollar amounts, the sponsor said the co‑payment coverage could "be as much as $6,000,000" depending on federal participation, and described the GME program startup as "$10,000,000, my understanding, for 2 years," after which program participants would operate the program. The sponsor emphasized the proposal includes a two‑year sunset tied to the temporary nature of the funds being redirected.

Committee members heard that the medical‑marijuana privilege tax extension (addressed in a separate bill) has been used to fund the UAMS project and that paying it off would free resources for other priorities. Members asked questions about timing, the permanence of the fund change and how much would remain once the immediate priorities were funded; the sponsor said residual amounts would be considered later if they fit the reserve’s stated focus on food insecurity and public‑health needs.

The committee adopted an amendment to add a House cosponsor and then voted to pass SB479 as amended by voice vote.

Quotations used in this article come from remarks made on the record in committee.

The committee’s action advances the measure to the Senate floor for additional consideration.