In Arkansas, as in many states, large portions of the justice system are funded by imposing fees on people who are often indigent. These fees support essential government functions, such as the judiciary, but they also trap individuals in cycles of debt, making it nearly impossible for them to rebuild their lives. The more they struggle to pay, the more the fees accumulate, becoming financially crushing and perpetuating inequity.
Reform is difficult because three structural challenges deter lawmakers:
The revenue from fees funds essential services that cannot be cut.
The entities receiving the special revenue often become powerful legislative opponents of reform.
Replacing the lost revenue requires significant appropriations, which legislators are reluctant to authorize.
This initiative takes a two-step approach:
Step One: Convert fees from special revenue to general revenue. The state maintains funding for the entity that previously relied on special revenue, but through general revenue instead. This creates a “spending wash,” meaning there is no net increase in costs. Entities prefer this structure, since general revenue is more reliable than piecemeal payments from individuals struggling to pay.
Step Two: Once fees are in the general revenue pot, legislators can reduce or eliminate them. This approach removes the direct conflict of interest for entities that both impose and benefit from the fees, while avoiding service cuts or creating new funding fights.
Even if step two is never fully achieved, step one alone improves fairness by eliminating perverse incentives for courts or agencies to impose more fees on low-income individuals in order to fund themselves.
Impact or how it will be measured:
The initiative will reach its goal if phase two of the plan is completed, allowing harmful fees in the Arkansas justice system to be phased out or eliminated. Even without completing phase two, impact can be measured by tracking the number of fees converted from special revenue to general revenue.