Arkansas Governor Proposes Tax Cuts, Prison Reform, and Education Spending

Sanders aims to reduce personal and corporate income taxes, explore prison alternatives, and continue investing in public schools and education freedom accounts.

Apr. 9, 2026 at 10:50pm

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A photorealistic painting of an empty state capitol building, with warm sunlight streaming through the windows and deep shadows across the facade, creating a sense of solitude and contemplation.The Arkansas state capitol stands alone in the afternoon light, a symbol of the governor's ambitious policy agenda.Franklin Today

Arkansas Governor Sarah Sanders outlined plans to cut personal and corporate income taxes, explore prison reform measures, and maintain funding for public schools and education freedom accounts in a wide-ranging interview. Sanders said she hopes to reduce personal income taxes by 0.2% and is open to ideas for housing non-violent elderly inmates in minimum security settings to free up prison beds. The governor also defended the rising costs of education freedom accounts, arguing that increased participation shows the program is working and should continue to be a priority.

Why it matters

Governor Sanders' proposals on taxes, prisons, and education spending reflect her administration's priorities and the policy debates shaping Arkansas politics. Tax cuts could provide financial relief for residents and businesses, while prison reform and education investments aim to address long-standing challenges in the state. How the legislature responds to these ideas will impact the state's fiscal outlook and the lives of Arkansans.

The details

Sanders said she hopes to cut personal income taxes by 0.2% in a special legislative session, as well as reduce corporate income taxes by a similar amount. However, any tax cuts will depend on the legislature keeping overall budget growth below 3%. The governor also said she is open to housing non-violent elderly inmates in minimum security settings, an idea proposed by the House Speaker, which could free up 700 prison beds. On education, Sanders defended the rising costs of the state's education freedom account (EFA) voucher program, arguing that increased participation shows it is working and should continue to be a priority alongside funding for public schools.

  • Gov. Sanders plans to call a special legislative session after the fiscal session to cut personal income taxes.
  • The current top personal income tax rate in Arkansas is 3.7%, while the top corporate income tax rate is 4.4%.

The players

Gov. Sarah Sanders

The current governor of Arkansas who outlined plans to cut personal and corporate income taxes, explore prison reform, and maintain education funding.

Rep. Brian Evans

The Republican Speaker of the Arkansas House of Representatives who suggested housing non-violent elderly inmates in minimum security settings to free up prison beds.

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What they’re saying

“'Corporate income taxes [could be] cut 0.2% — that's part of the conversation with the Legislature. We're still deciding, but the focus is on the personal income [tax].'”

— Gov. Sarah Sanders, Governor of Arkansas

“'I'm certainly open to looking at it as I've told every member of the Legislature as well as anybody else who has an interest in this. If you have an idea or a solution, I'm all ears. I still firmly believe that we have to expand capacity and I've yet to see a better alternative than the Franklin County location. But that doesn't mean there can't be other things that we're doing.'”

— Gov. Sarah Sanders, Governor of Arkansas

“'That means more and more families are taking advantage and figuring out how best to educate their kid. We spend double the amount on a kid in a public school than we will for an EFA account and we should. We want our public schools to do really well. That's why LEARNS also made the single biggest investment in public education in Arkansas history. This is not an either-or.'”

— Gov. Sarah Sanders, Governor of Arkansas

What’s next

The Arkansas legislature will need to approve any tax cuts or other policy changes proposed by Governor Sanders. The governor plans to call a special legislative session after the current fiscal session to address the personal income tax cut.

The takeaway

Governor Sanders' policy agenda reflects a balanced approach, aiming to provide tax relief while also maintaining investments in public education and exploring prison reform measures. The success of these proposals will depend on navigating the legislative process and finding common ground with lawmakers.