Arkansas Policy Foundation’s Efficiency Project recommendation, signed into law by the governor, will save $15 million annually
Governor Asa Hutchinson signed a measure reducing the number of Arkansas state agencies from 42 to 15, a reorganization that emerged from the Arkansas Policy Foundation’s Efficiency Project, which recommended consolidation. A state fiscal estimate recently concluded reorganization will save $15 million annually, largely through attrition of state government employees. There are 1,400 fewer state employees than in 2015 when the Project began. Project savings have allowed the Hutchinson administration to achieve fiscal policy goals including reduction of state corporate and individual income tax rates. Measures reducing both taxes were signed by Governor Hutchinson earlier this year.
In a statement, Governor Hutchinson said the Policy Foundation’s Project “was instrumental in beginning the movement to better serve the citizens of Arkansas” through streamlined government operations.