To Create And Transfer Funds To The Arkansas Reserve Fund Set-aside In The Restricted Reserve Fund To Allow That Additional Funds May Be Made Available For State Departments, Agencies, And Institutions; And For Other Purposes.
The Arkansas Reserve Fund Set-Aside will enhance the state's financial capacity by creating a sub-fund within the existing Restricted Reserve Fund. The bill establishes a mechanism through which the Chief Fiscal Officer of the State can approve the transfer of funds from this reserve to operational funds or accounts as circumstances require. The oversight by the Legislative Council or the Joint Budget Committee is maintained, ensuring that any fund dispersal is duly authorized and documented.
House Bill 1004, sponsored by various representatives and senators, is an act designed to create and transfer a substantial amount of funds to the Arkansas Reserve Fund. The specific amount being transferred is $710,612,508 from the General Revenue Allotment Reserve Fund into this newly established set-aside fund for state agencies, departments, and institutions. This bill aims to ensure that state entities have access to additional funding when necessary, allowing for a proactive approach to state financial management.
One potential area of contention surrounding HB 1004 pertains to the stipulations for fund usage and the requirement for bi-partisan approval for any fund transfers exceeding general revenue allocations. Critics may argue that such requirements could lead to delays in accessing necessary funds during urgent financial situations. Furthermore, the constitutional implications of such requirements could also be scrutinized, especially regarding their impact on the Legislative Council's authority if deemed unconstitutional.