DALLAS - The Arkansas General Assembly approved a $5 billion budget after reaching agreement on a so-called "private option" plan to expand Medicaid.
Under the Medicaid agreement, nearly 98,000 people in the state will be eligible for health insurance funded by the federal government but provided by private insurance companies.
Lawmakers blended the two forms of insurance as a compromise to accommodate conservative Republicans who oppose the so-called Obamacare measure to expand health insurance.
Gov. Mike Beebe, who endorsed the Medicaid provision, said he expects to sign the budget but plans to line-item veto one provision that exempts sand used in oil and gas hydraulic fracturing from state taxes.
The General Assembly's 30-day fiscal session was the third under a constitutional amendment voters approved in 2008 requiring the Legislature to meet and budget annually. Under that amendment, lawmakers hold regular sessions in odd-numbered years and abbreviated fiscal sessions focused on the state's budget in even-numbered years.
Lawmakers will meet for one day on March 19, at which time they can attempt to override any of Beebe's vetos.
The budget closely follows the proposal Beebe presented to the legislature in January calling for a state spending increase of $108 million. Arkansas schools receive $65 million more in the next fiscal year.
Legislators also gave final approval to bills tapping nearly $22 million from the state surplus for various one-time needs, including school broadband and reimbursement to counties for housing state prisoners.
Arkansas carries general obligation bond ratings of AA from Standard & Poor's and Aa1 from Moody's Investors Service, with stable outlooks.
