In compliance with Act 435 of 2021, the Arkansas Department of Finance and Administration (DFA) has announced a new purchasing threshold for cities and counties, effective January 1, 2025.
This adjustment reflects a significant increase driven by the Consumer Price Index (CPI) over the past five years. The updated threshold will rise from $35,000 to $42,921, marking a 22.63% increase.
This change is detailed in the provisions of Ark. Code Ann. §14-22-102(c)(1)-(2), §14-22-104(b)(1)-(2), and §14-58-303(b)(3)(A)-(B). The new figure will apply uniformly to various code sections, ensuring consistency across different financial regulations for local governments.
Key Details:
- Previous Threshold: $35,000
- New Threshold Effective January 1, 2025: $42,921
- Percentage Increase: 22.63%
- Determining Factor: Consumer Price Index for All Urban Consumers, as reported by the U.S. Department of Labor.
For cities of the first class and all counties in Arkansas, it is essential to be aware of this change, as it will affect procurement processes and financial planning.
Each affected entity will receive the updated details directly from the DFA, guiding them on how to adjust their purchasing practices.
For further information, or if you have specific inquiries regarding this adjustment, please reach out directly to the DFA at (501) 682-5339.
You can also find additional specifics here.
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