Arkansas’ budget increased cumulatively more than pop+inf in state funds and all funds from 2014-23, meaning taxes are higher than the average taxpayer can afford.
- The 2023 state funds budget is $2.9 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew faster than population growth plus inflation for the last ten years, the state spent and taxed $6.4 billion too much.
- The 2023 the all funds budget is $7.3 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew faster than population growth plus inflation over the past decade, the state spent and taxed $27.2 billion too much.
State Funds Budget Data
- Estimated FY 2024 Only State Funds Budget ($ Billions): $23.14
- FY 2025 Only State Funds Budget Limit ($ Billions): $24.52
- FY 2025 Only State Funds Budget Limit Growth ($ Billions): 5.95%
- Cost per person of state funds budgeting more than pop+inf over the last decade in 2023 budget: $935
- Cost per family of 4 of budgeting more than pop+inf over the last decade in 2023 budget: $3,738
- Cumulative cost per person of state funds budgeting more than pop+inf over the last decade from 2014-23: $2,079
- Cumulative cost per family of 4 of state funds budgeting more than pop+inf over the last decade from 2014-23: $8,318
State All Funds Budget Data
- Estimated FY 2024 All Funds Budget ($ Billions): $72.93
- FY 2025 All Funds Budget Limit ($ Billions): $77.26
- FY 2025 All Funds Budget Limit Growth ($ Billions): 5.95%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2023 budget: $2,371
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2023 budget: $9,485
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2014-23: $8,868
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2014-23: $35,471
Other Considerations
- Economic Freedom of North America (2021) (Rank): 29 [Fraser Institute]
- Economic Freedom (2022) (Rank): 21 [Cato Institute]
- Fiscal Policy (2022) (Rank): 30 [Cato Institute]
- Regulatory Policy (2022) (Rank): 14 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $3,875 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 19 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $5,031 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 10.20% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 26 [Tax Foundation]
- Top Income Tax Rate (2024) (%): 4.40% [Tax Foundation]
- Top Income Tax Rate (2024) (Rank): 18 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2024): P [Tax Foundation]
- Overall State Business Tax Climate Index (2024)(Rank): 38 [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (%): 4.80% [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (Rank): 12 [Tax Foundation]
- State-Local Sales Tax Rate (2024) (%): 9.46% [Tax Foundation]
- State-Local Sales Tax Rate (2024) (Rank): 48 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (%): 0.64% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (Rank): 39 [Tax Foundation]
- Economic Outlook (2024) (Rank): 15 [American Legislative Exchange Council]
- Economic Performance Rankings, 2012-2022 (2024) (Rank): 15 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 15 [American Legislative Exchange Council]
- Right-to-Work Law (2022) (Y/N): Y [American Legislative Exchange Council]
- State-Local Spending per Capita (2022) ($): $9,626 [US Government Spending]
- State-Local Spending per Capita (2022) (Rank): 1 [US Government Spending]
- Official Poverty Rate (2021-23) (%): 15.8 [Census Bureau]
- Official Poverty Rate (2021-23) (Rank): 47 [Census Bureau]
- Supplemental Poverty Rate (2021-23) (%): 11.8 [Census Bureau]
- Labor Force Participation Rate (Dec 2023) (%): 57.60% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2023) (Rank): 44 [Bureau of Labor Statistics]