State Representative DeAnn Vaught Update

On Tuesday, The House Education Committee advanced HB1185. This bill states that a student who attended preschool in a non-resident school district for at least one year before kindergarten will not count against that school’s 3% cap of non-residents under the School Choice Act of 2015.

The House Education Committee also advanced HB1161. This bill creates the Support for Pregnant and Parenting Students Act. It allows pregnant and parenting students to have an additional 10 days of excused absence for a parenting mother and father after the birth of their child.

The House Public Health, Welfare, and Labor Committee advanced HB1197. This bill would disqualify a claimant from collecting unemployment compensation benefits for any week that the claimant fails to respond to an offer of employment or fails to appear for a previously scheduled job interview.

The full House passed several bills addressing teacher retirement including HB1200. HB1200 provides for members who served in the armed forces for a period in which a military draft was in effect to receive up to 5 years of free service credit before retirement regardless of their current status.

The last day to file proposed constitutional amendments is Wednesday, February 8. Constitutional amendments are filed at House Joint Resolutions or Senate Joint Resolutions. You can review the proposals filed at arkansashouse.org.

The House will reconvene on Wednesday at 1:30 p.m.

State Chamber chief estimates two job openings for every unemployed person in Arkansas

by Roby Brock (roby@talkbusiness.net)

Arkansas State Chamber of Commerce President and CEO Randy Zook has been working to resolve the state’s labor dilemma with all the tools he can muster. With baby boomers retiring and a smaller number of new generation workers moving into the workforce, Arkansas and the nation are facing a daunting challenge to keep employers staffed.

“There are two open jobs right now for every one person who is officially unemployed. So you’ve got that gap, that two-to-one difference there that creates a lot of this gap,” Zook said on this week’s Talk Business & Politics.

While unemployment is at a historic low of 3.2% in Arkansas and while workers continue to come back into the labor market, there is still a demographic gap that can’t keep up. Arkansas’ labor force participation rate is about five percentage points below the national average, Zook said.

https://talkbusiness.net/2022/07/state-chamber-chief-estimates-two-job-openings-for-every-unemployed-person-in-arkansas/

Weekly Update from State Representative DeAnn Vaught

There are two big developments this week regarding our state’s economy. 

Unemployment in Arkansas continues to decline, and our budget forecast was adjusted to reflect an increase in revenue.  

The Arkansas Division of Workforce Services says Arkansas’ unemployment rate decreased two-tenths of a percentage point from 4.2% in August to 4.0% in September.

This is the third month in a row that we have seen a decline in unemployment, and we continue to remain below the national rate of 4.8%.

 We were also informed this week of a forecast revision to the general revenue budget. The Department of Finance and Administration (DFA) now says the forecast for Fiscal Year 2022 is $246.2 million more than previously forecasted.

 The forecast revision for FY 2023 was also increased to $6.454 billion, which is an increase of $298.5 million over the prior release.

 Individual income tax and sales and use tax are the two largest sources of general revenue to the state.

 This week, the Governor outlined an income tax cut proposal but added he would not call for a special session the week of October 25 as originally planned.  

The Governor’s proposal would lower the top rate from 5.9% to 5.5% in the next year and then lower it to 5.3% by 2024. His proposal also provides a low-income tax break and increases the individual tax credit. 

 Members continue to review tax cut proposals. It is anticipated that we will be called into a special session for that purpose at a later date. 

The National Conference of State Legislatures reports that nine states have passed reductions in either personal or corporate income tax this year. Several other states are considering proposals.

 We will continue to update you on any developments.You can find the latest news from the House of Representatives atwww.arkansashouse.org. 

Governor Hutchinson Releases Statement on Declining Unemployment Numbers

LITTLE ROCK – Data from the United States Department of Labor show Arkansas's unemployment rate dropped two-tenths of a percentage point to 4.0% in September. Governor Asa Hutchinson released the following statement regarding Arkansas's September Unemployment Report:

"The economy continues to expand in Arkansas with the unemployment rate dropping to 4.0%. We continue to be lower than the national unemployment rate, and it is even better news that more people are returning to the workforce. Job training is available for any who wish to improve their marketable skills, and I expect job creation to continue in the state because of our skilled workforce and the population growth that we are currently experiencing."

Governor Hutchinson Issues Statement on July Unemployment Rate

LITTLE ROCK – Governor Asa Hutchinson released the following statement on the decline in the unemployment rate for July.

“Our unemployment rate continues to be significantly below the national rate, and the fact that unemployment is now down to 4.3% reflects a growing economy in the state. The job opportunities are abundant with virtually every employer in Arkansas needing more workers. The challenge is the number of Arkansans who have not returned to the labor force after they lost a job early in the pandemic. There is a constant need to increase the number of workers in order to keep our economy vibrant.”

July Job Numbers Dip Compared with June, but Jobless Rate Falls to 4.3%

by Talk Business & Politics staff

Jobs in Arkansas during July were up 3.8% compared with July 2020, the number of unemployed fell 38% year over year, and the state’s jobless rate fell from 4.4% in June to 4.3% in July, according to Friday’s (Aug. 20) report from the U.S. Bureau of Labor Statistics (BLS).

The number of employed in Arkansas during July was an estimated 1,296,670, up 47,475 jobs compared with July 2020, but just below the 1,298,261 in June. The July numbers are preliminary and subject to revision.

The state’s labor force – the number of people eligible to work – was 1,355,630 in July, up compared with the 1,344,406 in July 2020, and below the 1,358,172 in June. Arkansans without jobs in July totaled 58,960, down from 59,911 in June, and down 38% from the 95,211 in July 2020.

https://talkbusiness.net/2021/08/july-job-numbers-dip-compared-with-june-but-jobless-rate-falls-to-4-3/

Arkansas’ Jobless Rate Dips to 4.4%, Tourism Sector Continues to Post Most Job Losses

by Michael Tilley (mtilley@talkbusiness.net)

Arkansas had 18,549 fewer employed in March compared to March 2020, with 60% of the job losses coming from the state’s hard hit tourism sector, according to Friday’s (April 16) report from the U.S. Bureau of Labor Statistics (BLS).

The state’s jobless rate in March was 4.4%, down from 4.5% in February and below the 3.8% in March 2020. The number of employed in Arkansas during March was an estimated 1,299,702, down 18,549 jobs compared with March 2020.

The biggest sector losses were in Leisure & Hospitality (11,100 fewer jobs), Government (down 8,600 jobs) and Education and Health Services (down 5,800 jobs). Manufacturing posted the largest year-over-year gains with 1,600 added jobs, and the Construction sector posted a year-over-year job gain of 1,000 jobs. The March numbers are preliminary and subject to revision. The report marked the first full year of COVID-19 impacts on the economy.

https://talkbusiness.net/2021/04/arkansas-jobless-rate-dips-to-4-4-tourism-sector-continues-to-post-most-job-losses/

VIDEO: CARES Act Steering Committee Meeting Friday (09.25.20) 10AM

The CARES Act Steering Committee, created by Governor Asa Hutchinson to recommend the best use of federal COVID-19 aid, meets virtually at 10 a.m. Friday, September 25, 2020. (Click on Play Button Above)

$165 Million Approved For Unemployment Fund

The group tasked with disbursing the $1.25 billion Arkansas received from the CARES Act has approved new funds to go toward stabilizing the state’s Unemployment Insurance Trust Fund.

Members of the state CARES Act steering committee on Friday voted to approve the infusion of $165 million from the federal coronavirus bailout to the fund at a meeting held virtually. This comes as the panel faced a deadline of Sept. 30 to stabilize the fund, otherwise employers would have to pay an extra $10 per employee per year in taxes.

https://www.ualrpublicradio.org/post/arkansas-panel-approves-165-million-unemployment-fund

Arkansas Panel Approves $165 Million For Unemployment Fund

The group tasked with disbursing the $1.25 billion Arkansas received from the CARES Act has approved new funds to go toward stabilizing the state's Unemployment Insurance Trust Fund. Members of the state CARES Act steering committee on Friday voted to approve the infusion of $165 million from the federal coronavirus bailout to the fund at a meeting held virtually.