AN ACT TO MAKE AN APPROPRIATION FOR STATE TURNBACK FOR COUNTIES AND MUNICIPALITIES BY THE OFFICE OF THE TREASURER OF STATE FOR THE FISCAL YEAR ENDING JUNE 30, 2027; AND FOR OTHER PURPOSES.

Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas As Engrossed: H4/15/26 1
95th General Assembly A Bill 2
Fiscal Session, 2026 HOUSE BILL 1052 3
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By: Joint Budget Committee 5
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For An Act To Be Entitled 8
AN ACT TO MAKE AN APPROPRIATION FOR STATE TURNBACK 9
FOR COUNTIES AND MUNICIPALITIES BY THE OFFICE OF THE 10
TREASURER OF STATE FOR THE FISCAL YEAR ENDING JUNE 11
30, 2027; AND FOR OTHER PURPOSES. 12
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Subtitle 15
AN ACT TO MAKE AN APPROPRIATION FOR 16
STATE TURNBACK FOR COUNTIES AND 17
MUNICIPALITIES BY THE OFFICE OF THE 18
TREASURER OF STATE FOR THE FISCAL YEAR 19
ENDING JUNE 30, 2027; AND FOR OTHER 20
PURPOSES. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. APPROPRIATION - GENERAL REVENUE TO CITIES. There is hereby 26
appropriated, to the Office of the Treasurer of State, to be payable from the 27
Municipal Aid Fund, for the purpose of distributing General Revenue accruing 28
therein for the benefit of municipalities as provided by law, by the Office 29
of the Treasurer of State for the fiscal year ending June 30, 2027, the 30
following: 31
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ITEM FISCAL YEAR 33
NO. 2026-2027 34
(01) GENERAL REVENUES - CITIES $29,372,099 35
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As Engrossed: H4/15/26 HB1052

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SECTION 2. APPROPRIATION - SPECIAL REVENUES TO CITIES. There is hereby 1
appropriated, to the Office of the Treasurer of State, to be payable from the 2
Municipal Aid Fund, for distributing Special Revenues accruing therein for 3
the benefit of municipalities as provided by law, by the Office of the 4
Treasurer of State for the fiscal year ending June 30, 2027, the following: 5
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ITEM FISCAL YEAR 7
NO. 2026-2027 8
(01) SPECIAL REVENUES - CITIES $215,000,000 9
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SECTION 3. APPROPRIATION - GENERAL REVENUES TO COUNTIES. There is 11
hereby appropriated, to the Office of the Treasurer of State, to be payable 12
from the County Aid Fund, for the purpose of distributing General Revenue 13
accruing therein for the benefit of counties as provided by law, by the 14
Office of the Treasurer of State for the fiscal year ending June 30, 2027, 15
the following: 16
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ITEM FISCAL YEAR 18
NO. 2026-2027 19
(01) GENERAL REVENUE - COUNTIES $21,428,616 20
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SECTION 4. APPROPRIATION - SPECIAL REVENUES TO COUNTIES. There is 22
hereby appropriated, to the Office of the Treasurer of State, to be payable 23
from the County Aid Fund, for the purpose of distributing any monies provided 24
by Highway Turnback, Severance Taxes to counties, and any other monies 25
provided by the Acts of the General Assembly for the benefit of counties, by 26
the Office of the Treasurer of State for the fiscal year ending June 30, 27
2027, the following: 28
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ITEM FISCAL YEAR 30
NO. 2026-2027 31
(01) SPECIAL REVENUE - COUNTIES $230,000,000 32
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SECTION 5. APPROPRIATION - UNANTICIPATED SPECIAL REVENUES - COUNTIES. 34
There is hereby appropriated, to the Office of the Treasurer of State, to be 35
payable from the County Aid Fund, for unanticipated monies received from the 36
As Engrossed: H4/15/26 HB1052

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sale or lease of minerals, oil and gas on federal military lands or from 1
other unanticipated special revenues, for the transfer to those counties to 2
which such monies are allocated by law, by the Office of the Treasurer of 3
State for the fiscal year ending June 30, 2027, the following: 4
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ITEM FISCAL YEAR 6
NO. 2026-2027 7
(01) UNANTICIPATED SPECIAL REVENUES $15,000,000 8
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SECTION 6. APPROPRIATION - UNANTICIPATED SPECIAL REVENUES - CITIES. 10
There is hereby appropriated, to the Office of the Treasurer of State, to be 11
payable from the Municipal Aid Fund, for unanticipated monies received from 12
the sale or lease of minerals, oil and gas of federal military lands or from 13
other unanticipated special revenues, for the transfer to those cities to 14
which such monies are allocated by law, by the Office of the Treasurer of 15
State for the fiscal year ending June 30, 2027, the following: 16
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ITEM FISCAL YEAR 18
NO. 2026-2027 19
(01) UNANTICIPATED SPECIAL REVENUES $10,000,000 20
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SECTION 7. APPROPRIATION - REAL PROPERTY TAX REDUCTION - COUNTIES. 22
There is hereby appropriated, to the Office of the Treasurer of State, to be 23
payable from the Property Tax Relief Trust Fund, for distributing funds 24
provided by a statewide property tax reduction to counties, by the Office of 25
the Treasurer of State for the fiscal year ending June 30, 2027, the 26
following: 27
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ITEM FISCAL YEAR 29
NO. 2026-2027 30
(01) DISTRIBUTION TO COUNTIES FOR PROPERTY 31
TAX RELIEF $450,000,000 32
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SECTION 8. APPROPRIATION - PROPERTY TAX RELIEF FUND REVENUES 34
DISTRIBUTION TO COUNTIES. There is hereby appropriated, to the Office of the 35
Treasurer of State, to be payable from the Property Tax Relief Trust Fund, 36
As Engrossed: H4/15/26 HB1052

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for accruing therein for the benefit of counties to be distributed using the 1
formula for the County Aid Fund under §19-25-102(c), by the Office of the 2
Treasurer of State for the fiscal year ending June 30, 2027, the following: 3
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ITEM FISCAL YEAR 5
NO. 2026-2027 6
(01) DISTRIBUTION TO COUNTIES $2,000,000 7
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SECTION 9. APPROPRIATION - PROPERTY TAX RELIEF FUND REVENUES 9
DISTRIBUTION TO CITIES. There is hereby appropriated, to the Office of the 10
Treasurer of State, to be payable from the Property Tax Relief Trust Fund, 11
for accruing therein for the benefit of municipalities to be distributed 12
using the formula for the Municipal Aid Fund under §19-25-101(c), by the 13
Office of the Treasurer of State for the fiscal year ending June 30, 2027, 14
the following: 15
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ITEM FISCAL YEAR 17
NO. 2026-2027 18
(01) DISTRIBUTION TO CITIES $2,000,000 19
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SECTION 10. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 21
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 22
DISTRIBUTION OF FUNDS. Funding provided in Property Tax Relief Fund Revenues 23
Distribution to Counties and Property Tax Relief Fund Revenues Distribution to 24
Cities of this Act from the Property Tax Relief Trust Fund shall not be 25
distributed unless there are sufficient funds in the Property Tax Relief Trust 26
Fund as of the date that the Chief Fiscal Officer of the State certifies the 27
amount in excess of the required reimbursement to the counties as provided in 28
§26-26-310(b)(2)(C)(i). If there are sufficient funds remaining in the 29
Property Tax Relief Trust Fund on December 31, 2025 2026, as certified, the 30
Treasurer shall distribute two million dollars ($2,000,000) to counties and 31
two million dollars ($2,000,000) to cities for the fiscal year ending June 30, 32
2026 2027 from the balance remaining on December 31, 2025 2026 from the 33
Property Tax Relief Trust Fund. The distribution to counties shall be made in 34
accordance with the distribution formula in §19-25-102(c). The distribution 35
to cities shall be made in accordance with the distribution formula in §19-25-36
As Engrossed: H4/15/26 HB1052

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101(c). The funds attributable to sales and use taxes levied prior to July 1, 1
2025 2026 shall not be transferred from the Property Tax Relief Trust Fund to 2
the cities and counties. 3
The provisions of this section shall be in effect only from July 1, 2025 4
2026 through June 30, 2026 2027. 5
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SECTION 11. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 7
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 8
LOANS TO CITIES AND COUNTIES. On July 1 of each fiscal year, the Chief 9
Fiscal Officer of the State shall request a transfer by the State Treasurer 10
from the Budget Stabilization Trust Fund to the County Aid Fund and to the 11
Municipal Aid Fund to assist the various cities and counties in meeting cash 12
flow needs early in the state fiscal year. The transfer shall be a loan to 13
be repaid in equal installments from general revenue distributions each month 14
during the fiscal year for which the loan was made and shall be in addition 15
to any other loans authorized by law for the County Aid and Municipal Aid 16
Funds. The amount of such loan for each fiscal year shall be $3,517,657 to 17
the Municipal Aid Fund and $1,906,079 to the County Aid Fund, or so much 18
thereof as may be available in the Budget Stabilization Trust Fund as 19
determined by the Chief Fiscal Officer of the State. Upon such transfer 20
being completed, the State Treasurer shall immediately distribute such funds 21
to each of the several municipalities and counties in the same manner as 22
general revenues are distributed. 23
It is the intent of the General Assembly that the Chief Fiscal Officer of the 24
State and the State Treasurer shall make every reasonable, and financially 25
sound effort to insure that local governments receive the full amount of the 26
loan authorized herein on July 1 of each year and that the monies authorized 27
for local governments from general revenues be distributed in equal monthly 28
payments. 29
The provisions of this section shall be in effect only from July 1, 2025 30
2026 through June 30, 2026 2027. 31
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SECTION 12. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 33
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL, AND TEMPORARY 34
LAW. RESPONSIBILITY FOR FUNDING. Beginning on January 1, 2000, each county of 35
the State shall be responsible for a portion of the cost of regular salaries 36
As Engrossed: H4/15/26 HB1052

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and personal services matching for deputy prosecuting attorneys who are to 1
become state employees as of January 1, 2000. During the monthly 2
distribution of general revenues to the counties, the Treasurer of State 3
shall retain from each county, one-twelfth (1/12th) of 80% of the amount 4
appropriated by each of the counties for salaries and associated fringe 5
benefit costs as of January 1, 1999. The amount retained by the Treasurer of 6
State shall be credited to the State Central Services Fund for the partial 7
support of the regular salaries and personal services matching costs for 8
deputy prosecuting attorneys. The amount which each county appropriated for 9
salaries and associated fringe benefit costs as of January 1, 1999, shall be 10
determined by the Division of Legislative Audit of the Legislative Joint 11
Auditing Committee and shall be certified to the Treasurer of State on or 12
before December 1, 1999. 13
Each county shall be responsible for paying twenty-five percent (25%) of 14
the amount retained by the Treasurer of State for that county for the fiscal 15
year ending June 30, 2024 under this section. 16
The provisions of this section shall be in effect only from July 1, 17
2025 2026 through June 30, 2026 2027. 18
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SECTION 13. SPECIAL LANGUAGE. NOT TO BE INCORPORATED INTO THE ARKANSAS 20
CODE NOR PUBLISHED SEPARATELY AS SPECIAL, LOCAL AND TEMPORARY LAW. 21
CARRY FORWARD. At the close of each fiscal year any unexpended funds for the 22
County Aid and Municipal Aid line items shall be carried forward and 23
distributed pursuant and in addition to the funding formula established under 24
A.C.A 19-25-101 and 19-25-102 within forty-five (45) days. 25
Any carry forward of unexpended balance of funding as authorized herein, 26
may be carried forward under the following conditions: 27
(1) Prior to June 30, 2026 2027 the Agency shall by written statement 28
set forth its reason(s) for the need to carry forward said funding to the 29
Department of Finance and Administration Office of Budget; 30
(2) The Department of Finance and Administration Office of Budget shall 31
report to the Arkansas Legislative Council all amounts carried forward by the 32
September Arkansas Legislative Council or Joint Budget Committee meeting 33
which report shall include the name of the Agency, Board, Commission or 34
Institution and the amount of the funding carried forward, the program name 35
or line item, the funding source of that appropriation and a copy of the 36
As Engrossed: H4/15/26 HB1052

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written request set forth in (1) above; 1
(3) Each Agency, Board, Commission or Institution shall provide a 2
written report to the Arkansas Legislative Council or Joint Budget Committee 3
containing all information set forth in item (2) above, along with a written 4
statement as to the current status of the project, contract, purpose etc. for 5
which the carry forward was originally requested no later than thirty (30) 6
days prior to the time the Agency, Board, Commission or Institution presents 7
its budget request to the Arkansas Legislative Council/Joint Budget 8
Committee; and 9
(4) Thereupon, the Department of Finance and Administration shall 10
include all information obtained in item (3) above in the budget manuals 11
and/or a statement of non-compliance by the Agency, Board, Commission or 12
Institution. 13
The provisions of this section shall be in effect only from July 1, 2025 14
2026 through June 30, 2026 2027. 15
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SECTION 14. COMPLIANCE WITH OTHER LAWS. Disbursement of funds 17
authorized by this act shall be limited to the appropriation for such agency 18
and funds made available by law for the support of such appropriations; and 19
the restrictions of the State Procurement Law, the General Accounting and 20
Budgetary Procedures Law, the Revenue Stabilization Law, the Regular Salary 21
Procedures and Restrictions Act, or their successors, and other fiscal 22
control laws of this State, where applicable, and regulations promulgated by 23
the Department of Finance and Administration, as authorized by law, shall be 24
strictly complied with in disbursement of said funds. 25
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SECTION 15. LEGISLATIVE INTENT. It is the intent of the General 27
Assembly that any funds disbursed under the authority of the appropriations 28
contained in this act shall be in compliance with the stated reasons for 29
which this act was adopted, as evidenced by the Agency Requests, Executive 30
Recommendations and Legislative Recommendations contained in the budget 31
manuals prepared by the Department of Finance and Administration, letters, or 32
summarized oral testimony in the official minutes of the Arkansas Legislative 33
Council or Joint Budget Committee which relate to its passage and adoption. 34
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SECTION 16. EMERGENCY CLAUSE. It is found and determined by the 36
As Engrossed: H4/15/26 HB1052

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General Assembly, that the Constitution of the State of Arkansas prohibits 1
the appropriation of funds for more than a one (1) year period; that the 2
effectiveness of this Act on July 1, 2026 is essential to the operation of 3
the agency for which the appropriations in this Act are provided, and that in 4
the event of an extension of the legislative session, the delay in the 5
effective date of this Act beyond July 1, 2026 could work irreparable harm 6
upon the proper administration and provision of essential governmental 7
programs. Therefore, an emergency is hereby declared to exist and this Act 8
being necessary for the immediate preservation of the public peace, health 9
and safety shall be in full force and effect from and after July 1, 2026. 10
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/s/Joint Budget Committee 12
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