Week in Review

State Capitol Week in Review
February 13, 2009
LITTLE ROCK – With passage of a cigarette tax increase and a cut in food taxes, the Senate made the state's revenue picture more clear for the next two years.
Now the legislature will focus on how state revenue is spent.
The cut in the state sales tax on groceries will lower state revenue by about $30 million a year, but the tobacco tax increase will raise about $85.4 million in new money.
The governor and legislative leaders pledged to dedicate revenue from the tobacco tax to creation of a statewide trauma center and expansions of numerous existing health care programs.
In all, the state's net general revenue fund next fiscal year should be between $4.42 and $4.62 billion. That will pay for public schools, institutions of higher education, health and human services, prisons and numerous other services.
One major question legislators must decide is how much of the general revenue budget will be financed with surplus funds, which is usually considered "one time money." The governor has proposed using about $60 million from the expected surplus of $300 million to pay for ongoing operations.
As the legislature moves into the second half of the 2009 regular session, budget matters will take up more of our attention. Writing budgets for state agencies is one of the most important and time-consuming duties of the General Assembly.
In every regular session the legislature may refer up to three proposed constitutional amendments to the next general election ballot.
The Senate and House Committees on State Agencies and Governmental Affairs will consider a list of 24 measures that were submitted by last week's deadline.
One measure, SJR 4, would change the term limits amendment, but would not extend the total number of years a legislator could serve. Under the current term limits amendment in the state Constitution, a legislator can serve six years in the House and eight in the Senate, for a total of 14 years.
SJR 4 would still limit an individual to 14 years in the legislature, but all 14 years could be in the Senate or in the House. They could be in any combination adding up to 14 years. SJR 1 would change the terms of county officials from two years to four years.
Two other measures, SJR 2 and SJR 10, would repeal the annual legislative sessions amendment passed last year, and return sessions to a biennial basis. Coincidentally, the Joint Budget Committee last week adopted new rules in preparation for annual sessions.
Some legislators favor annual sessions and others prefer to meet every two years, so a lively debate is expected. Ultimately, the voters of Arkansas decide. Any proposed amendments referred by the legislature will be on the general election ballot in November of 2010.
In other business, the Senate passed legislation to prohibit drivers under 18 from talking on cell phones while driving. Drivers from 18 to 20 could use a hands-free device, such as a headset. A first offense would result in a citation and a second offense in a fine of up to $50.
Also last week, the Senate passed a bill to prohibit drivers of all ages from text-messaging while driving.