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Committee approves amended budget (25-33) to adjust elected-official pay 0.84% to resolve 27th pay-period issue
Summary
The committee voted to send amended ordinance 25-33 to the full court. The amendment increases elected-official salaries by 0.84% to avoid a constitutional problem caused by a 27th pay period and carries an estimated county-wide cost of $8,111.82.
Faulkner County's Budget & Finance Committee voted to send an amended budget ordinance (25-33) to the full court after members discussed a pay-timing issue tied to the Arkansas State Constitution and a 27th pay period.
The Chair explained that under the Arkansas State Constitution, if an elected official is paid $50,001 in 2025, the county cannot pay that same official less in 2026 while they remain in the same term. Because the county will pay a 27th payroll on Dec. 31, 2025, that extra pay would push total 2025 pay above the amount envisioned and could make any apparent reduction in 2026 impermissible. To address that timing effect, the committee considered an amendment to the budget ordinance that applies an additional 0.84% adjustment to elected-official salaries.
"Apparently, if you pay an elected official $50,001 in the year, 2025, you cannot pay them $50,000 in the year 2026," the Chair said, describing the constitutional constraint. The Chair and county finance staff (including Margaret, who ran numbers for the packet) explained the adjustment and provided fund impacts: an estimated $4,097 to the County General fund; $608 to the road shop fund (reflecting the county portion of the county judge's salary); smaller amounts to other offices; and a total county-wide impact of $8,111.82.
Committee members asked whether the adjustment affects benefits such as health insurance or workers' compensation. Finance staff clarified the change covers payroll and payroll-matching costs (Social Security/Medicare, retirement); it does not change health insurance (which is paid per position) or workers' compensation in the way described.
Member 3 moved to put the amended ordinance 25-33 on the table for discussion; the motion was seconded and the committee voted by voice to pass the amended ordinance on to the full court. The Chair noted the full-court process and future budget-year options, including the ability to adjust elected-official pay in the 2026 budget process for new terms if desired.
