LITTLE ROCK, Ark. — The budget for the Arkansas state treasurer’s office has stalled in the Legislature over a dispute about efforts to allow taxpayers with 529 college savings plans to withdraw funds for education expenses at public, private and religious K-12 schools.
The Arkansas House on Wednesday voted 74-15 in favor of the treasurer’s budget, one vote shy of the 75 votes needed to advance the measure. It’s the second day in a row the proposal has failed before the House.
The budget bill includes a provision intended to mirror a change in federal tax law that was recently enacted. Supporters say the change in state law is needed to ensure Arkansans don’t face state tax penalties if they withdraw funds for those educational expenses.