SINCE ASA HUTCHINSON GOVERNOR ASA HUTCHINSON TOOK OFFICE IN 2015, HE HAS CONTINUED TO IDENTIFY A NUMBER OF EFFICIENCIES AND COST-SAVING TRANSFORMING MEASURES TO STREAMLINE STATE OPERATIONS AND PUT MONEY STATE GOVERNMENT BACK INTO THE POCKET OF HARD- WORKING ARKANSANS.

THERE ARE 2015 APPROXIMATELY 1,100 FEWER EMPLOYEES IN STATE GOVERNMENT On Governor Hutchinson’s first day in AS A RESULT OF THE office, he institutes a hiring freeze for all GOVERNOR’S HIRING Executive Branch agencies. This ongoing FREEZE, SAVING THE effort is foundational to government STATE MILLIONS OF transformation in that it provides the DOLLARS. Governor with a mechanism to review open positions to determine whether or not they’re necessary. This has proven to be an effective and prudent approach to eliminate waste and efficiently staff government agencies. With the stroke of a pen, Governor Hutchinson kept his signature promise by THE MIDDLE signing into law a $102 CLASS INCOME million income tax cut for TAX CUT OF middle-class Arkansans. 2015 IS THE LARGEST CUT TO THE INCOME TAX RATE IN AS A RESULT OF THESE MERGERS, HISTORY. THE STATE WILL Governor Hutchinson, with SAVE MORE THAN support from the General $10 MILLION Assembly, consolidates the OVER FIVE YEARS. first of several agencies, saving taxpayer dollars and creating a more efficient way to serve Arkansans. A list of consolidations can be found on Page Five. 1

THE LIEUTENANT GOVERNOR’S Governor Hutchinson launches REVIEW PROVIDES an organizational review of the SUBSTANTIVE Arkansas Department of Human INSIGHT THAT Services (DHS). He taps Lieutenant HAS BEEN Governor to lead the effort. HELPFUL IN ORGANIZATIONAL REFORMS AT DHS. 2016 THESE CUTS SAVE THE STATE OVER $7 MILLION. Governor Hutchinson implements a one-percent, across the board cut to his agencies.

Governor Hutchinson implements additional targeted cuts to the Office of Health Information Technology (OHIT); THESE CUTS Department of Health (ADH); Arkansas SAVE THE Science and Technology Authority (ASTA); STATE OVER Tobacco Prevention and Cessation; $11 MILLION. Parks and Tourism; and Department of Information Services (DIS).

As part of Governor Hutchinson’s statewide THE transformation efforts, the Department of ESTABLISHMENT Veterans’ Affairs (ADVA) opens its fifth regional OF THE FIVE Veterans Service Office in three months to REGIONAL better serve Arkansas’s nearly 250,000 veterans. OFFICES WAS COMPLETED FOUR YEARS AHEAD OF SCHEDULE.

THE HIGHWAY IMPROVEMENT ACT OF 2016 Governor Hutchinson enacts a five-year, USED EXISTING $50 million funding plan to meet the $200 RESOURCES million Federal match for highway funding. WITHOUT RAISING TAXES.

THE SALE GENERATES Governor Hutchinson directs the Department MORE THAN of Health to sell off its failing In-Home $24 MILLION IN Services Unit to the private sector. This ONE-TIME NET included more than 300 state and 1,800 PROCEEDS TO contract employees statewide. THE STATE AND ELMINIATES ONGOING COSTS FOR THE UNIT. THE CHIEF TRANSFORMATION OFFICER DRIVES THE IMPLEMENTATION Governor Hutchinson OF STATE appoints Amy Fecher as EFFICIENCIES AND Chief Transformation STREAMLINES STATE Officer of the state. OPERATIONS. 2017 AT THE TIME, THIS TAX CUT WAS Governor Hutchinson signs his second income THE SECOND- tax cut into law—a $50.5 million cut for low- LARGEST CUT TO income Arkansans. THE INCOME-TAX RATE IN ARKANSAS Governor Hutchinson HISTORY. signs into law the new THIS NEW Higher Education FORMULA Productivity CHANGES THE WAY Funding Formula for INSTITUTIONS OF Arkansas’s colleges HIGHER EDUCATION and universities. ARE FUNDED BASED TAB IS CHAIRED UPON STUDENT BY MIKE PROGRESS RATHER Governor Hutchinson CARROLL, A THAN STUDENT establishes the SMALL BUSINESS ENROLLMENT. Transformation OWNER IN FORT Advisory Board SMITH, AND (TAB), volunteers from VICE-CHAIRED both the public and BY LIEUTENANT private sectors who GOVERNOR TIM work to identify cost- GRIFFIN. savings within state Governor Hutchinson, government. with support from the AS A RESULT OF General Assembly, THESE MERGERS, consolidates nine THE STATE WILL more state agencies, SAVE MORE streamlining services THAN $500,000 and saving taxpayer ANNUALLY. dollars. A list of Governor Hutchinson consolidations is on THE LONG-TERM creates Arkansas’s first Page Five. 2 RESERVE FUND Long Term Reserve HAS INCREASED Fund by reallocating BY MORE THAN approximately $100 $20 MILLION IN million from the Healthy INTEREST EARNINGS Century Trust Fund to SINCE 2017 WITH A establish a long-term CURRENT BALANCE Governor Hutchinson dedicated savings OF $124 MILLION. TO DATE, THE mechanism for the launches MyIdea, STATE HAS state. a direct line to RECEIVED MORE state agencies that THAN 850 gives Arkansans a IDEAS FROM chance to contribute ARKANSANS, ideas for ways to AND AGENCIES improve services, ARE BUSY increase efficiencies, CHANGES INCLUDE A IMPLEMENTING save money, and WORK REQUIREMENT MANY OF THEM. streamline state FOR PROGRAM government. RECIPIENTS & LOWER THE INCOME THRESHOLD FROM Governor Hutchinson, with support from the 138% OF THE FEDERAL General Assembly, requests a waiver from POVERTY LEVEL the Trump Administration to incorporate (FPL) TO 100%, conservative and substantive changes to the REDUCING ROLLS Arkansas Works program. BY APPROXIMATELY 60,000. 2018/2019

WITH THIS REDUCTION IN ROLLS, THERE Governor Hutchinson announces that ARE NOW FEWER Rolls in Arkansas have been ARKANSANS ON reduced by 117,000 since 2017 due to MEDICAID THAN transformation efforts within, program WHEN GOVERNOR integrity, and a strong economy. HUTCHINSON TOOK OFFICE IN 2015.

THIS IS THE SECOND Governor Hutchinson signed into law LARGEST INCOME his third income tax cut since 2015, TAX CUT IN lowering the top marginal rate from ARKNASAS HISTORY. 6.9% to 5.9%, a $97 million cut. 3

THIS IS A $12.5 MILLION TAX CUT FOR ARKANSAS Governor Hutchinson signs legislation to HOMEOWNERS. increase the Homestead Property Tax Credit for Arkansas homeowners from $350 to $375.

THERE ARE CURRENTLY 42 CABINET AGENCIES THAT REPORT TO Governor Hutchinson signs the THE GOVERNOR. Transformation and Efficiencies THIS NEW LAW Act of 2019 into law, cutting REDUCES THAT the number of cabinet-level NUMBER BY MORE agencies from 42 to 15. THAN HALF. FURTHER INFORMATION

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2015 consolidations include: (1) Arkansas Department of Rural Services into the Arkansas Economic Development Commission (AEDC); (2) Science and Technology Authority (ASTA) into the AEDC; (3) Division of Land Survey into the Arkansas Geographic Information Office (AGIO); and (4) Arkansas Building Authority (ABA) into the Department of Finance and Administration (DFA).

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2017 consolidations include: (1) Office of Health Information Technology (OHIT) into the Arkansas Department of Health (AHD); War Memorial Stadium into Parks and Tourism; Energy Office at AEDC into the Arkansas Department of Environmental Quality (ADEQ); Student Loan Authority into the Arkansas Department of Finance Authority (ADFA); Board of Private Career Education into the Arkansas Department of Higher Education (ADHE); Child Abuse and Neglect Prevention Board into the DHS Division of Children and Family Services (DCFS); Embalmers Board, Funeral Directors Board into the Arkansas Insurance Department (AID); Cemetery Board into the AID; and the Burial Association Board into the AID.

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Since 2015, Governor Hutchinson has cut the income tax rate in Arkansas by nearly $250 million, annually. As a result, every Arkansas taxpayer has received tax relief.

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