Arkansas lawmakers are entering another week of the state’s fiscal session, where key decisions about how taxpayer money is spent are being made largely in budget committee meetings rather than on the House or Senate floor.

During the fiscal session, lawmakers focus primarily on approving the state’s budget — deciding how money is distributed to agencies and programs that fund core services.

This week, legislators are expected to work through hundreds of millions of dollars in spending, with a focus on education, health care and other essential services.

Much of that work happens in the Joint Budget Committee, where lawmakers review agency requests and build the state’s spending plan before sending bills to the full House and Senate for final approval.

On Tuesday, lawmakers are set to review whether the state should pay out claims and lawsuit settlements, including cases involving the Department of Corrections. They will also consider funding for several constitutional offices, including the Supreme Court, secretary of state and auditor.

By Wednesday, the focus shifts to major state agencies such as the departments of health, human services and education, which fund programs like Medicaid, public health services and schools.

Lawmakers will also review how federal funding is being used, including money from programs created during and after the pandemic and infrastructure investments. That includes more than $1 billion the state expects to receive over several years to support health care, particularly in rural areas.

Rep. Lee Johnson, R-Greenwood and vice chair of the Joint Budget Committee, said the funding presents a significant opportunity for the state.

“’One big, beautiful bill’ is bringing over $1 billion into our state over the next five years through rural health transformation funding,” Johnson said. “That’s a tremendous opportunity for us to improve health care in Arkansas.”

The discussions come as Arkansas is projecting a budget surplus, shifting the debate from whether to cut spending to how to allocate additional funds.

Senate President Pro Tempore Bart Hester, R-Cave Springs, said lawmakers are focused on how to use that surplus while continuing efforts to attract businesses to the state.

“We have money. We’re expecting a $400 million surplus this year,” Hester said. “We’re going to get the fight over what we’re going to do with the money, not what we’re going to do in an absence of money.”

However, some lawmakers have raised concerns about long-term spending commitments tied to new programs.

Rep. Nicole Clowney, D-Fayetteville, said decisions made during the fiscal session could have lasting financial impacts.

“Once you’ve given somebody something from the government, it is very hard to take that thing away,” Clowney said. “This is going to be a long-term commitment that our state is going to be dealing with for a very long time.”

Lawmakers are expected to continue working through budget items over the next several days before sending more spending bills to the full House and Senate for consideration.