Week in Review

State Capitol Week in Review
March 20, 2009
LITTLE ROCK – Thousands of Arkansas children will get health coverage and thousands of Arkansas college students will get college scholarships, thanks to legislation approved by the General Assembly.
Also, Arkansas consumers will save about $40 million on groceries, beginning July 1, with the enactment of legislation to reduce the state sales tax on food by a penny.
Manufacturers will save from $9 to $10 million on energy costs under Senate Bill 875, which was approved by the Senate.
The governor signed Act 435 to expand the ARKids First program, which benefits children whose parents have jobs but cannot afford health insurance. Children who live below the poverty level qualify for ARKids First, which is part of the Medicaid program.
Act 435 will add about 8,000 to the ARKids First program. It serves about 70,000 children now. The act makes them eligible if their families' yearly income is 250 percent of the federal poverty level, up from 200 percent. That means children in a family of four will be eligible if their annual income is $55,125. It had been $42,400 a year for a family of four.
Medicaid officials told legislators they hoped to enroll another 20,000 eligible children through promotional campaigns. Not all eligible children are signed up for ARKids First because their parents are unaware of the program.
The expansion in health coverage will be paid for with revenue from the tobacco tax that was increased earlier this session.
Act 436 reduces the state sales tax on groceries from 3 percent to 2 percent. It doesn't affect local option sales taxes that voters have approved for projects like expansions to a jail or a hospital. It lowers taxes by about $40 million a year.
The Senate and House each passed identical versions of the lottery scholarship bill, which higher education officials estimate will increase to 35,000 the number of Arkansas students receiving Academic Challenge Scholarships.
The bills create a nine-member commission to operate the lottery. Tickets are expected to go on sale by the end of 2009 and scholarships should be available for students enrolled in Arkansas colleges in the fall of 2010.
Voter Fraud
Also last week the Senate passed SB 192 to tighten laws on voting by absentee ballot, which has been abused to illegally influence elections. Under the bill, possession of more than 10 absentee ballots by one person creates the presumption that the person intended to commit voter fraud.
The bill sets restrictions on who can help people fill out their ballots. Only poll workers could help more than six voters fill out a ballot. During early voting, county clerks or deputy county clerks could help.
More Tax Relief
SB 875 reduces the state sales tax on energy consumption by manufacturing plants, by three-fourths of a cent. The effective date is July 1, 2009.
Act 151 ensures property tax relief for people 65 or older, or people with disabilities. Their property tax assessments can not go up under current law, but Act 151 clarifies that their assessments will go down if their property values go down.