Sen. Bart Hester, R-Cave Springs, expects a bill that centers on power generation to move through the Senate soon. He also predicts success moving forward with funding for an $825 million state prison, and he said plans related to Medicaid costs will likely be revealed this week.
Hester, the president of the Arkansas State Senate, was a guest on this week’s edition of Talk Business & Politics.
Last week, SB307, the Generating Arkansas Jobs Act of 2025, failed by one vote in the Arkansas State Senate on Wednesday (March 5). The bill received 17 votes for, 11 votes against, four did not vote, and three voted present.
The measure would allow utilities and electric cooperatives to file annual riders with the state Public Service Commission (PSC). Those riders would allow them to increase rates annually before a new plant is fully capitalized, rather than the current system that enacts a larger rate increase near the end of the process. The commission would have to determine if the update is in the public interest.
After the debate, Sen. Jimmy Hickey, R-Texarkana, successfully asked senators to seek PSC analysis of the bill by early this week. Hester, who was a yes vote, said the move is to get some senate members more comfortable with the legislation and its intended consequences.
“I think we’re going to end up getting the votes and here’s why. I believe that all 35 members understand that we need more energy. We’ve got to find a way to get there. We’re just arguing over exactly how to get that done,” said Hester. “I think Senator Hickey has some concerns. He’s really working hard on a process to get him okay and other members, and so look, I’m willing to go through that process. Look, I’ve learned a long time ago down here, you better learn to win and if a member says they can bring some votes, they just want a few more questions answered or they want some report, go for it.”
“I don’t care what the PSC says on this issue, right? I have found them to be unreliable and undependable at best. Someone signs a letter then says, well, maybe staff wrote it and maybe they didn’t, wasn’t their words like, look, I don’t care anymore what the PSC has to say about this issue. It’s unreliable to me. It’s undependable, but look, it matters to some members, so we’re going to go that route,” Hester added.
MEDICAID, PRISON FUNDING
Two major issues still unresolved in the 95th General Assembly have large price tags. An appropriation bill to authorize up to $825 million in funding to build a new state prison in Franklin County hit a snag in the Joint Budget Committee two weeks ago. It fell one vote short of passage after questions from members over the costs arose.
Local citizens in Franklin County have made a strong stance against the state prison being located in their community and some lawmakers are questioning Gov. Sarah Sanders’ decision to locate it there.
Hester said he is confident the bill will clear the budget panel, but the threshold is steeper on the floors of the Senate and House.
“I’m confident we can get the 51% for the number out of Budget [committee]. The problem is getting the 75% on the Senate and House floor for the overall budget for the Department of Corrections,” he said.
“Look, we know we need a prison. Members know we need a prison. There’s questions about this one from just really a few members. What most members want to understand is do we have the money? Is it secured? We don’t want to go into debt, we don’t want to end up with a problem. Here’s what I know. We can build a prison for $825 million. If someone says you can’t do it, that is foolish. $825 million is a lot of money. We can absolutely build the prison for that amount of money,” said Hester.
When asked about other prison projects around the country that have exceeded one billion dollars in costs, Hester said he doesn’t think that will happen here in Arkansas.
“I think we have a governor that has said she’s going to do difficult things and she does it. When you go significantly over budget like that, it’s because you’re just probably are usually unwilling to make hard decisions. We’ve got a governor that’s willing to make the hard decisions when it counts,” he said.
“Now look, could there be unforeseen conditions that end up coming up and it costs more? Maybe. But I tell you, we’ve got a budget. Our absolute intent is to stay within it. I’m not going to say that something unforeseen couldn’t happen, but look, we can build a prison for $825 million. We’re going to get it done,” added Hester.
A big piece of the budget puzzle this session centers on Medicaid funding. Recently, the U.S. Congress passed a bill to reduce Medicaid funding to the states by $880 billion. The potential ramifications for Arkansas’ budget could be significant.
Hester said there are many questions remaining, but the dialogue is going to ramp up publicly as early as this week.
“Look, we just don’t know what’s going to end up happening? But what we do know is our country is trillions of dollars more a year in debt. We do not have the money. We cannot afford it. Tough decisions are going to have to be made. Look, I can’t find $1 in our budget that everyone agrees to cut, and look, there’s going to have to be tough decisions to be made and people are going to howl and scream and it’s going to be tough.
“But at the end of the day, whatever the federal government sends down here to get a responsible budget so that I can rest assured for my kids and grandkid’s future, I’m going to be okay with that… We’ll figure it out once we have real information, how we’re going to handle that from the state side,” he said.
When asked if the state’s Medicaid expansion program, ARHome, could be in jeopardy, Hester said it will, in part, be determined by the federal funding which covers 90% of that program’s costs.
“They know on a federal level they cannot afford to do what they’re currently doing and we’re already talking about. We’ve been having some meetings on what that might look like on the Senate side or on the legislative side from the state side on how we’re going to move forward. I think we’ve got a plan. We’ll be talking about it next week and at the end of the day, look, things are going to change. We’re going to be prepared. Hopefully we can get in front of that a little bit,” he said.
You can watch Hester’s full interview at this link.