Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 SENATE BILL 182
4
5 By: Senators Gilmore, S. Flowers
6 By: Representatives Barnes, K. Ferguson, Holcomb, Wardlaw
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8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING ANNUAL
10 APPROPRIATIONS FOR LOCAL GOVERNMENT; TO REQUIRE A
11 LOCAL GOVERNMENT TO CONTINUE TO OPERATE UNDER THE
12 ANNUAL APPROPRIATION ORDINANCE FOR THE PREVIOUS YEAR
13 UNTIL A NEW APPROPRIATION ORDINANCE IS ADOPTED; TO
14 DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.
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16
17 Subtitle
18 TO REQUIRE A LOCAL GOVERNMENT TO
19 CONTINUE TO OPERATE UNDER THE ANNUAL
20 APPROPRIATION ORDINANCE FOR THE PREVIOUS
21 YEAR UNTIL A NEW APPROPRIATION ORDINANCE
22 IS ADOPTED; AND TO DECLARE AN EMERGENCY.
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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26 SECTION 1. Arkansas Code � 14-14-904(b)(1)(A)(ii), concerning the
27 procedure for appropriations by a quorum court, is amended to add an
28 additional subdivision to read as follows:
29 (c)(1) If a quorum court does not pass an
30 annual appropriation ordinance as required under subdivision (b)(1)(A)(ii)(a)
31 of this section by January 1, the annual appropriation ordinance from the
32 previous year, including any amendments to the annual appropriation budget
33 adopted by ordinance that were enacted on or before December 31 of the year
34 of the annual appropriation ordinance, is readopted by operation of this
35 subdivision (b)(1)(A)(ii)(c), at the final level of appropriation and the
36 beginning level of zero (0) expenditure.
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1 (2) Expenditures of the county,
2 including without limitation the payment of salaries to employees as the
3 employee's salary existed on December 31, shall continue to be paid under the
4 annual appropriation ordinance levels of the previous year until a new annual
5 appropriation ordinance is adopted.
6 (3) Expenditures of the county paid
7 under subdivision (b)(1)(A)(ii)(c)(2) of this section shall not include per
8 diem compensation for the justices of the peace under � 14-14-1205 or salary
9 for the county judge under � 14-14-1204(c).
10 (4) An annual appropriation ordinance
11 adopted by the quorum court after January 1 shall not include per diem
12 compensation for the justices of the peace under � 14-14-1205 or salary for
13 the county judge under � 14-14-1204(c) for any period when the previous
14 year's annual appropriation ordinance has been readopted.
15 (5) For the purposes of this subdivision
16 (b)(1)(A)(ii)(c), the annual appropriation ordinance adopted by the quorum
17 court in the previous year shall be readopted by operation of this
18 subdivision (b)(1)(A)(ii)(c) regardless of any determination that the annual
19 appropriation ordinance for the previous year is or may be invalid.
20
21 SECTION 2. Arkansas Code � 14-14-1204(c), concerning compensation of
22 elected county officers, is amended to add an additional subdivision to read
23 as follows:
24 (3) If an annual appropriation ordinance is not adopted by
25 January 1 under � 14-14-904, the annual salary of a county judge shall not be
26 paid until an annual appropriation ordinance is adopted.
27
28 SECTION 3. Arkansas Code � 14-14-1205(a)(1), concerning compensation
29 of township officers, is amended to add an additional subdivision to read as
30 follows:
31 (C) If an annual appropriation ordinance is not adopted by
32 January 1 under � 14-14-904, the per diem compensation for justices of the
33 peace shall not be paid until an appropriation ordinance is adopted.
34
35 SECTION 4. Arkansas Code � 14-58-202 is amended to read as follows:
36 14-58-202. Adoption of budget.
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1 (a) Under this subchapter, the governing body of the municipality
2 shall, on or before February 1 of each year, adopt a budget by ordinance or
3 resolution for operation of the city or town municipality.
4 (b)(1) If the governing body of the municipality has not adopted a
5 budget by ordinance for the operation of the municipality by January 1, any
6 expenditure of the municipality for that year shall continue to be paid
7 according to the adopted budget from the previous year, including any
8 amendments to the budget adopted by ordinance that were enacted on or before
9 December 31 of the year of the budget, until a new budget for the year is
10 adopted by the governing body of the municipality.
11 (2) The expenditures of the municipality paid under subdivision
12 (b)(1) of this section shall be limited to necessary operational expenses of
13 the municipality, including without limitation:
14 (A) Expenditures to ensure all regular and usual
15 government services offered by the municipality are maintained;
16 (B) Expenditures necessary to protect the peace, health,
17 and safety of the residents of the municipality;
18 (C) Payroll and benefits of employees of the municipality
19 as the employee's salary existed on December 31;
20 (D) Payments of contracts for commodities or services
21 previously entered into by the municipality in which payment is due; and
22 (E) Payments of outstanding debt or bonds, including
23 interest, as authorized under applicable law.
24 (3) Expenditures authorized under this subsection do not include
25 a new capital purchase based on prior authorization for a capital purchase in
26 the adopted budget from the previous year.
27
28 SECTION 5. EMERGENCY CLAUSE. It is found and determined by the
29 General Assembly of the State of Arkansas that when the governing body of a
30 county or municipality does not pass an annual appropriation ordinance, the
31 county or municipality cannot provide basic services and the employees of the
32 county or municipality cannot be paid; that this act will allow expenditures
33 to be paid until an annual appropriation ordinance is in place; that the lack
34 of an appropriation ordinance makes it impossible for the county or
35 municipality to provide necessary services to the residents of the county or
36 municipality, which threatens the public peace, health, and safety of the
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1 residents of the county or municipality; and that this act is immediately
2 necessary because failure to pass an annual appropriation ordinance puts
3 employees of the county or municipality in financial distress and at risk of
4 being unable to pay for financial responsibilities. Therefore, an emergency
5 is declared to exist, and this act being immediately necessary for the
6 preservation of the public peace, health, and safety shall become effective
7 on:
8 (1) The date of its approval by the Governor;
9 (2) If the bill is neither approved nor vetoed by the Governor,
10 the expiration of the period of time during which the Governor may veto the
11 bill; or
12 (3) If the bill is vetoed by the Governor and the veto is
13 overridden, the date the last house overrides the veto.
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4 02/03/2025 4:31:11 PM SSS134Every fact on this page links to its source, starting with the official bill record.