Hutchinson considering special session for school safety, tax relief

Little Rock, Arkansas — This August, Governor Asa Hutchinson called for a special session after a record surplus last year.

“This reinforces our need to lower tax cuts that’s planned to lower our rates,” he said.

In this special session, Gov. Hutchinson plans to provide tax relief. Those plans include:

• Lower the top individual tax rate to 4.9%, retroactive to January 1, 2022, saving taxpayers $295 million in 2022
• Lower the corporate income tax rate to 5.3%, beginning January 1, 2023
• Create a $150 nonrefundable low- and middle-income tax credit, saving taxpayers $156.3 million in 2022

The governor is hoping lawmakers agree to transfer $50 million from the state surplus for the purpose of a school safety grant program, consistent with the recommendations of the Arkansas School Safety Commission. “That $50 million would be a good start,” Gov. Hutchinson said. “A good support mechanism for our school districts as they try to carry out the responsibility that school children must be safe.”

Spending for the recommendations will focus on threat assessment teams, mental health services and more. “Which makes the need clear for a $50 million school safety grant program,” he said.

According to the governor, the tax cuts will provide relief for all Arkansans. “As inflation rises and the cost of living increases, Arkansans need more money in their pockets,” he said.

This Tuesday, Aug. 9, the special session will begin and Gov. Hutchinson says he expects the session to last a week.