The last year Arkansas didn't have a surplus was the 2008/2009 fiscal year, right in the middle of the great recession. That year, funding for education, human services, and local aid was slashed to save money.
The state almost always closes the fiscal year in June with a surplus because of a law passed in 1945. The Revenue Stabilization Act was a Post Great depression law.
Line items are triaged by level of need. Category A: the essentials, often the same amount of money spent last year. Category B: the increase from last year's spending. And if there's enough money left over budgets can splurge on category C items.
Mid pandemic, lawmakers added a D category giving extra cash to agencies like the department of human services.
Surpluses have vacillated over the years. The surplus was almost $300 million in 2013. It went back down to $15.7 million in 2017 and last year it was over $300 million.
The highest recorded surplus was 1.6 billion in 2022.
From Little Rock, I am Politics and Government Reporter Josie Lenora, This has been a Arkansas Civic Minute