State Agencies Told to Tighten Spending in New Letter from Governor

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Arkansas Gov. Sarah Huckabee Sanders is directing state department heads and cabinet secretaries to continue efforts to reduce government spending, according to a letter sent this week.

In the letter, Sanders tied the push for reduced spending to her goal of continuing cuts to the state income tax and limiting the growth of state government. She also noted that Arkansas is projected to end the fiscal year with a surplus of more than $500 million.

Sanders said that, moving forward, any general revenue-funded increases for the 2028–2030 biennial budget will be made exclusively through executive recommendations.

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The governor encouraged agency leaders to review their budgets closely, identify potential savings, and evaluate whether current spending is being used effectively. She also urged departments to limit requests for new personnel, stating that only positions considered critical and demonstrating measurable efficiency improvements would be approved.

Sanders referenced the “Arkansas Forward” initiative, which identified about $300 million in savings and efficiencies in a December 2024 report. She said those findings will help guide future budget recommendations, while also encouraging agencies to continue seeking additional cost-saving measures beyond the initiative.

The letter was sent as part of ongoing budget planning efforts aimed at reducing spending while maintaining state priorities, according to Sanders.