Arkansas lawmakers give initial approval of $6 billion budget

KUAR | By Laura Jansen , Daniel Breen

Arkansas lawmakers have nearly completed the approval of Gov. Asa Hutchinson’s $6 billion state budget proposal. The members of the Arkansas House and Senate voted Monday to approve identical versions of the state’s Revenue Stabilization Act.

The budget will include funding for higher education, the state's workforce, and will help address a backlog in people seeking services for those with disabilities. The fiscal year begins on July 1.

ualrpublicradio.org/local-regional-news/2022-03-07/arkansas-lawmakers-give-initial-approval-of-6-billion-budget

Arkansas Legislature

Rep. Lane Jean, R-Magnolia, addresses fellow House members on Monday ahead of a vote on the governor's proposed $6 billion state budget.

Weekly Update from State Representative DeAnn Vaught

The Revenue Stabilization Act (RSA) is typically one of the last items passed every session. It categorizes and prioritizes state spending.

Members are now reviewing the proposed Revenue Stabilization amendment schedule reflecting the allocation of general revenue funds for Fiscal Year 2023.

The proposed amendment outlines $6.02 billion in spending. That is less than a 3% increase in spending from the current fiscal year.

The state fiscal year begins July 1.

The largest increases in spending can be found in education and human services.

The proposed budget outlines a $70 million increase for elementary and secondary education.

It includes an $11 million increase for DHS Children and Family Services and a $23.5 million increase for DHS grants which includes Medicaid spending.

County jail reimbursement is increased by $6.4 million in the proposed budget.

The RSA calls for a $7.4 million increase for Arkansas State Police. This will assist in raising the salaries for state troopers.

It is anticipated members will vote on the RSA next week.

On Wednesday, the House voted to amend HB1034, an Act for the Department of Corrections-Division of Correction Appropriation. The amendment includes an appropriation of up to $75 million for costs associated with prison expansion.

The House passed SB103 which provides a one-time stipend of $5,000 to full time certified city and county law enforcement officer as well as probation and parole officers.

It also provides for a $2,000 one-time stipend for state troopers.

The House also passed one time appropriations for pregnancy center resource grants, the School for the Deaf and Blind, the breast milk bank, and the Northwest Arkansas Veterans Home.

You can find the proposed budget for Fiscal Year 2023 as well live-streams of all committee meetings and House proceedings on our website www.arkansashouse.org.

AUDIO: Governor Hutchinson’s Weekly Address | Successes in the Session

LITTLE ROCK – This week the 93rd General Assembly concluded its business, and today I’d like to talk about a few of the success stories from the legislative session.

First, I appreciate the leadership of Senate Pro Tem Jimmy Hickey of Texarkana and Speaker Matthew Shepherd of El Dorado. Their steady hand and leadership helped us to navigate through some of the more contentious debates.

One bill that created some last-minute controversy was Senate Bill 298, which was known as the Arkansas Sovereignty Act. This bill was designed to push back against the federal government for what many Arkansans believe will be a new round of gun-control measures. I support that message, and I am a defender of the 2nd Amendment. But the bill would have penalized state and local law enforcement officers for cooperating with federal agencies; it also would have jeopardized hundreds of cases pending in federal court. In other words, public safety would be compromised, and the bill was clearly unconstitutional.

For those reasons I vetoed the bill. As a result, everyone worked together to draft a new bill that Representative Jeff Wardlaw and Senator Missy Irvin sponsored. The new bill sends the same message to Washington that we will not accept unconstitutional burdens on our 2nd Amendment rights. But the bill protects our public safety needs and will not put law enforcement at risk. This was House Bill 1957, and I have now signed the bill into law.

Now, let me talk about some additional successes in the session. 

One of our biggest wins was passage of the Revenue Stabilization Act. The act, known as the RSA, was implemented in the 1940s and requires the state to maintain a balanced budget. Passage of the RSA is an annual exercise in which legislators prioritize spending for the next fiscal year.

As part of the RSA this year, our reserve funds continue to build. We have consistently increased our surplus funds from zero when I took office to the current $210 million. And with the new budget adopted  in this session of the General Assembly, I expect those reserve funds to grow to more than $700 million. As Senator Jonathan Dismang said, the state has never been in better financial condition. Our reserve funds are like a long-term savings account that allows us to weather unexpected economic setbacks.

Other bills we passed include a $2,000 increase in the median salary for school teachers; a reduction in the number of years of service for state police officers to retire from thirty years to twenty-eight years; a requirement that Arkansas students take at least one computer science course to graduate; and that every high school employ at least one certified computer science teacher.    

As you can see, we had a very busy and successful legislative session.

Weekly Update from State Representative DeAnn Vaught

This week, the Joint Budget Committee advanced two bills outlining the proposed budget for the next fiscal year.

The Revenue Stabilization Act prioritizes and categorizes state spending. It is typically one of the last bills passed every session. This year, the RSA is outlined in two identical bills SB702 and HB1949.

The proposal disburses $5.84 billion in general revenue. While fully funding our obligations, it decreases overall state spending by $50 million.

Proposed increases can be found in Medicaid, corrections, and State Police. The budget also includes the largest percentage increase in educational adequacy in 15 years.

The state’s long-term reserve fund is expected to reach over $700 million by the end of this fiscal year. This savings helps the state to secure lower interest rates and bond ratings.

This week, the House also passed a bill to reduce the sales tax from 6.5% to 3.5% on used cars priced from $4,000-$10,000.

HB1912 passed both chambers and is now awaiting the Governor’s signature.

Other tax measures passing the House this week include HB1719 and HB1456.

HB1719 creates the Reboot Pilot Program. It would provide income tax credits for employers who hire former felony offenders who were released from his or her first term of incarceration in the last year. The maximum amount of this credit is $3,000.

HB1456 creates an income tax in an amount equal to 50% of an eligible railroad track maintenance expenditures. The maximum amount of the credit is $5,000 per mile of track.

On Thursday, the House voted in favor of SJR10. This is a proposed constitutional amendment which, if approved by voters, would allow the General Assembly to call a special session upon the submission of a written proclamation with signatures from at least 2/3 of both the House and Senate membership. Currently, only the Governor can call for a special session.

The House also voted in favor of HR1048. This resolution would allow the House to consider a third proposed constitutional amendment, SJR14, the Arkansas Religious Freedom Amendment.

The House previously passed HJR1005 would require statewide ballot initiatives to receive 60% of the vote before becoming law.

Proposed constitutional amendments approved by the General Assembly will be on the November 2022 ballot.

The House expects to enter an extended recess beginning Tuesday, April 27, and return in the fall to address congressional redistricting. The Governor has also indicated he intends to call a special session in the fall to address additional tax cuts.

You can find all House agendas and links to live streams at www.arkansashouse.org.

House Revenue & Tax Panel Advances Tax Cuts, Discusses Future Financial Condition for State

by Roby Brock (roby@talkbusiness.net)

Arkansas lawmakers on Thursday (April 8) approved tax cut measures in the House Revenue & Tax committee, including a larger exemption for used car taxes and a repeal of the soft drink tax.

For the first 88 days of the 93rd Arkansas General Assembly, legislative leaders have been holding off major tax cuts, despite a nearly $500 million surplus, as they stitch together the $5.86 billion state budget.

Now that Revenue Stabilization Act (RSA) talks have formally commenced between the executive and legislative branches, a clearer consensus of revenue and spending has emerged.

https://talkbusiness.net/2021/04/house-revenue-tax-panel-advances-tax-cuts-discusses-future-financial-condition-for-state/