(Summer 2025) The Arkansas Policy Foundation is celebrating its 30th anniversary as a market-based, 501(c)(3) non-profit think tank. Following is a brief history of the Policy Foundation that illustrates how reform ideas are later enacted by policymakers.
1995
“(T)here’s interest in starting … (a) policy group … (in) Arkansas, President (Bill) Clinton’s home state …” Washington Times (Feb. 2).
“Six businessmen have formed the Arkansas Policy Foundation, a public policy think tank to address state economic policies, government growth, education, finance, spending and other issues. Founders (include)… French Hill, a banker (and) Blant Hurt, a Jonesboro manufacturer.” Arkansas Democrat-Gazette (May 18). President and CEO Michael W. Watson said the Policy Foundation will use “major policy studies; opinion editorials; conferences and hearings; print, television and radio media; grassroots outreach; and legislative briefings.” Benton Courier (Dec. 20).
1996
“In his first full day as governor, Mike Huckabee said he has issued … executive orders. (They) include requiring all state agencies to cooperate with the Murphy Commission,” a policy organization led by Madison Murphy. The nonpartisan panel is a Foundation project. Arkansas Democrat-Gazette (July 17). “A review of the top 38 commission members finds a roughly even split along party lines.” About 12 have been identified as Democrats. Another dozen are known Republicans. The rest (are) Independents. Arkansas Democrat-Gazette(Nov. 25).
Foundation analysts Allyson Tucker and Donna Watson recommend charter schools as an educational reform in a published study, the first of its kind in Arkansas.
1997
Gov. Huckabee and Murphy meet with leaders. The commission’s goal: ideas and recommendations aimed at making state government smaller, leaner, more focused, more accountable to citizens and more efficient.” Northwest Arkansas Times (May 9).
“No state agency wants to have an adversarial relationship with the Murphy Commission, the volunteer task force looking into ways to make state government leaner and more efficient.” The Morning News (June 1).
1998
The Murphy Commission completes its work. “Gov. Mike Huckabee hailed the commission’s recommendations … but cautioned that implementing the changes and seeing its efforts could take years.” Morning News of N.W. Arkansas (Sept. 18). A fiscal recommendation emphasizes the importance of phasing-out the state income tax. Education recommendations include charter schools and universal school choice.
1999
Arkansas’ charter school law is liberalized (Act 890) thanks to the bipartisan work of state senators Jim Argue(D-Little Rock) and John Brown III (R-Siloam Springs).
2000
A Foundation recommendation, performance-based budgeting, faces opposition. The pilot program, sponsored by state Sen. Mike Beebe, D-Searcy, is later discontinued.
2001
The Foundation emphasizes forecasts and their impact on state revenues under newly-hired economist Greg Kaza. A Donrey News Service report (February 2) cites the Foundation’s forecast the U.S. economy entered recession in 1Q-2001. In November, the National Bureau of Economic Research (NBER) declares the economy officially entered recession in 1Q-2021. The recession ended later that year in 4Q-2021.
2002
The Arkansas Supreme Court accepts the Foundation’s motion to file an amicus curiae brief in a landmark school finance case, Lake View School District No. 25 v. Huckabee. The motion argues Foundation “has researched, in detail and following accepted methodologies, the accounting and finance practices of Arkansas’ public school system. The brief argues for “a standardized activity-based accounting system.”
The Foundation notes market-based economists have opposed grocery taxes for two centuries. A citizen-led proposal to repeal the state grocery tax is defeated by voters.
2003
Students at Maumelle’s Academics Plus Charter School “record double-digit increases on standardized, national norm-referenced tests” under CEO Dr. Caroline Proctor.
2004
The Arkansas Supreme Court accepts a second amicus brief from the Foundation that argues for additional accounting reforms in the Lake View school finance case.
2005
The Policy Foundation continues to lay the foundation for future tax cuts by noting Arkansas ranks 49th in the U.S. in per capita personal income despite record tax increases linked by advocates to income growth. Research notes advocates, including then-Gov. Bill Clinton claimed in 1983-84 that tax increases would lead to income growth. Arkansas also ranked 49th in the U.S. in per capita personal income in 1983. Seven Southeast states improved their income rankings in the two-decade period.
The Foundation launches its Dictionaries to the Delta program for elementary schools.
2006
The Foundation’s 1998 recommendation to restructure Arkansas’ 311 public school districts into “134 administrative units” achieved its 66th restructuring when the Altheimer School District was restructured into Dollarway. The state Board of Education action means Arkansas has 245 K-12 districts. The proposal argued fewer school administrators would save tax dollars while every school “can keep its mascot, football and basketball team and preserve long-standing rivalries with other schools.”
2007
Gov. Mike Beebe signs a measure cutting the state grocery tax in half, reducing it from six to three percent. The Wall Street Journal (Feb. 13) cites Foundation research, which finds a typical family of four would save $234 annually due to the policy reform.
A key provision of a charter school expansion allows any successful charter organization to establish an unlimited number of schools irrespective of congressional district. The expansion is broader than earlier versions and increases competition.
2008
The Foundation’s 1998 recommendation to create an A-to-F letter grade system for Arkansas public schools receives extensive media coverage following publication of its third annual School District Rankings study. Eighteen K-12 districts earn the top grade (A or A-minus), while 14 received a failing grade of F. Districts receiving top grades in the Foundation study are McCrory, Valley View, Greenwood, Searcy, Viola, Conway, Lake Hamilton, Bentonville, Ouachita, Lakeside (Garland Co.), Melbourne, Caddo Hills, Mena, Norfork, Lamar, Bergman, Fayetteville and Mountain Home.
2009
The Foundation forecasts a June end to the Great Recession in a November memo (Talk Business). The NBER (Sept. 20, 2010) later finds the recession ended in June.
The state grocery tax is reduced again from three to two percent under Gov. Mike Beebe’s direction. Foundation research is cited during debate in the state legislature.
2010
The Foundation hosts a virtual education forum at the Clinton Presidential Center. Former Gov. Bob Wise (D-West Virginia) is keynote speaker. The event examines the state enrollment cap on virtual education. Panels feature former state Sen. John Riggs (D-Little Rock) and an education official from the Republican Bush administration. Arkansas parents and students argue for ending the enrollment cap in one session.
2011
The state Department of Education releases its first letter grade report for K-12 public school districts. Five Arkansas school districts that earned the top ‘A’ grade in four annual Foundation studies also receive the highest mark in the first state report. But three districts that received ‘F’ grades from the Foundation earned marks from the state high enough to preclude students from using a public school choice option.
2012
A Foundation proposal is a runner-up in a Boston think tank’s 21st annual Better Government Competition. It calls for “state and local governments” to “disclose information concerning transactions in their (taxpayer-supported) pension funds, so that they are at least as regulated as derivatives transactions in the private sector.”
2013
A Republican legislature reduces the top state income tax rate from 7.0 to 6.9 percent.
2014
Gov. Asa Hutchinson announces the Foundation will lead an Efficiency Project review of state government. Hutchinson and Lt. Gov. Tim Griffin address the Foundation’s 20th anniversary Recognition Reception for supporters.
2015
The Foundation hires the international consulting firm PwC to review the state Department of Finance and Administration (DFA) as part of the Efficiency Project.
Gov. Hutchinson and legislators enact a state income tax cut for middle class filers.
Arkansas establishes its first school choice plan, the Succeed Scholarship program.
2016
The Foundation and PwC deliver Efficiency Project reports to Gov. Hutchinson. The Foundation identifies 184 cost-saving initiatives at state agencies, and recommends a blue-ribbon panel review its findings. PwC makes nine recommendations for DFA.
2017
Gov. Hutchinson announces creation of a blue-ribbon panel, the Transformation Advisory Board (TAB). The 15-member volunteer group includes Foundation Board member George Dunklin, Jr.
Gov. Hutchinson and legislators enact an income tax cut that helps low-income filers.
2018
In response to the Efficiency Project, state agencies amend mission statements and develop strategic plans. TAB completes its work. Gov. Hutchinson announces a state government reorganization plan to reduce cabinet-level agencies from 42 to 15.
2019
State legislators enact the reorganization plan, the largest action since the early 1970s.
Gov. Hutchinson and legislators enact an income tax cut aimed at high-income filers.
2020
A Hutchinson administration report estimates $57.6 million in reorganization savings.
The statewide K-12 school choice market nears 100,000 students.
2021
Gov. Hutchinson and legislators enact another income tax cut, from 5.9 to 4.9 percent.
2022
The Foundation notes the relationship between income tax revenues and the business cycle is a factor when enacting multi-year rate reductions that rely on revenue triggers.
2023
Gov. Sarah Huckabee Sanders and legislators cut the income tax rate from 4.9 to 4.7, and from 4.7 to 4.4 percent. Surplus revenues pay for the tax cuts enacted since 2015.
The LEARNS Act championed by Gov. Sanders advances universal school choice.
2024
Gov. Sanders and legislators reduce top state income tax rate from 4.4 to 3.9 percent.
The statewide K-12 school choice market tops 120,000 students for the first time.
2025
Gov. Sanders and legislators enact grocery tax phase-out effective Jan. 1, 2026.
