Law sets spending limits for four Arkansas medical education programs

The University of Arkansas for Medical Sciences can spend up to $13,933,264 across four programs. The budgets cover staff pay and operating costs. The biosciences budget includes $1,896,736 for Arkansas Children's Hospital research. The aging center, public health college, and Helena center use the Tobacco Settlement Program Fund's Targeted State Needs Program Account. The biosciences institute uses that fund's Arkansas Biosciences Institute Program Account. Actual spending cannot exceed either the approved spending limits or the money available by law. These budgets cover July 1, 2026, through June 30, 2027.

The university must provide at least one-third of available institute funds for Arkansas Children's Hospital research when institute funding falls below its approved budget. This rule covers money the university receives under the Arkansas Biosciences Institute budget. With full institute funding, the $1,896,736 hospital research budget must be fully funded, or the hospital's chief executive may request a transfer. Requested transfers go to the Department of Human Services Grants Fund Account to match federal money for supplemental Medicaid payments to Arkansas Children's Hospital. The hospital funding and transfer rules apply from July 1, 2026, through June 30, 2027.

The law sets a maximum of 113 regular employees and annual salary limits across the four university programs. The ceilings cover administrative, teaching, and research positions in the four programs. Arkansas does not promise to keep funding positions if tobacco settlement money is insufficient. Replacing expired tobacco settlement money with state money requires lawmakers to set aside money and the Governor to authorize it. The Tobacco Settlement Commission must make these funding limits available to current and newly hired workers paid with tobacco settlement money. When applicable, employee handbooks or service contracts paid with tobacco settlement money must include these funding limits. Staffing limits and the rules about continued funding cover July 1, 2026, through June 30, 2027.

The university may move permission to spend money between categories within each program's budget after receiving the required approvals. This permission covers transfers between spending categories within each budget. Transfers require approval from the Division of Higher Education, the state's Chief Fiscal Officer, and either the Legislative Council or Joint Budget Committee. If a court strikes down the legislative approval requirement, the entire section allowing these transfers becomes void. Transfers must follow this law's rules rather than the general transfer rule cited in the law. These transfer rules apply from July 1, 2026, through June 30, 2027.