During a recent ALC meeting, Rep. Les Warren (R – D84) presented a committee report that included a recommendation to approve a contract with Aptus Financial. The contract would fund a consultant to help state employees navigate the federal Public Service Loan Forgiveness (PSLF) program — a process widely acknowledged to be confusing and bureaucratic. The proposed three-year contract would run through 2028 with a total projected cost of $2,165,097.88. There was disagreement over how many employees the contract would benefit, with estimates ranging from 3,000 to 7,200.
Rep. Fran Cavenaugh (R – D30) pushed back, offering a substitute motion to adopt the report except for the Aptus contract portion, which she wanted pulled out for a separate vote. She also called for a roll call and separation of the chambers.
Cavenaugh reminded colleagues that just months ago, the Legislature approved $140 million in raises for state employees. “If they want to hire a consultant, they can,” she said. “At some point, we must stop spending money like we have an unlimited amount—because we don’t.” She also pointed out this proposal had already failed twice in the past.
Supporters of the contract, including Sen. Breanne Davis (R -D25), argued the cost could be covered with interest from existing state funds—not general tax dollars. She framed the program as a recruitment and retention tool, noting that the state often struggles to compete with the private sector. However, Cavenaugh reminded the committee that in the past, legislators have been told interest income is off-limits because it’s already tied to other obligations.
Rep. Aaron Pilkington (R – D45) and Sen. Fred Love (D – D15) spoke in favor of the contract, calling the PSLF process difficult and time-consuming.
Rep. Lane Jean (R – D97) raised concerns and specified that the contract wouldn’t apply to university employees—even though they’re also state workers. He also warned about the fiscal climate, pointing to declining revenue and ongoing efforts to cut the state income tax. “It’s the employee’s responsibility to pay their debt, not the state’s,” he said.
Davis argued the funding would come from a cash fund paid for by employees. But Cavenaugh pushed back, clarifying that the state also contributes to that fund — meaning tax dollars are still used. She ended with a reminder of the government’s basic reality:
“The State of Arkansas makes no product and earns no revenue. We tax, we fine, and we penalize—that’s how we get our money.”
After the proposal received just seven yes votes from Representatives—and 19 no votes—Sen. Bart Hester (R – D33) stated that the Senators on the Legislative Council would have easily approved it for state employees. After reviewing the Senate’s voting record from this most recent legislative session, Conduit has no reason to doubt that statement.
At a time when many voters are hoping for tax cuts and smaller government, some Lawmakers still see no issue using public dollars to pay consultants for help with a federal loan forgiveness program — a service already offered (however poorly) by the federal government itself. The Legislature just handed out $140 million in raises. Now some want taxpayers to foot the bill again — this time, for debt advice.
Here are how the House Member voted:
Painter NO
Puryear NO
Rose NO
Hawk NO
Beaty YES
Evans NO
Collins YES
Garner
Crawford NO
Warren
Holowell NO
Gazaway NO
Cavenaugh NO
McCollum
Underwood NO
Allen YES
Vaught
Henley NO
Ferguson YES
Beck NO
Gonzales NO
Tosh NO
Bentley
M. Brown
Wooten
Lundstrum
Lynch NO
Whitaker YES
Cozart NO
Eubanks YES
Wardlaw
M Shepherd YES
Jean NO
Meeks NO
Ladyman NO
