Welcome - Senator Larry Teague's Blog

Week In Review

2012-01-26T17:02:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – Last year Arkansas high school graduates were better prepared academically for college than they have been in the recent past, according to a recent survey based on remediation rates of freshmen.

Every year the state Department of Higher Education counts the number of entering freshmen who must take remedial classes their first year in a four-year university or a two-year college. Students are required to take remedial classes if their standardized test scores in English, reading and math are not high enough. On the popular ACT test, the required score is 19 or higher. A total of 23,176 students took the college admission tests.

This year's report shows that 49.3 percent of students enrolling in an Arkansas public college or university had to take at least one remedial class. That is the lowest percentage since the fall semester of 1993. Our worst performance was in the fall of 2002, when 59.6 percent of new students had to take a remedial class.

There is a large difference in remedial rates between students entering a four-year university and those entering a two-year college. At the state's four-year universities, 34.5 percent, or 5,101 students had to enroll in a remedial class. At two-year colleges the remedial rate was 75.5 percent, or 6,335 students.

One reason the remedial rate is higher at two-year colleges is that the students frequently are older, non-traditional students. When they enter college they have been in the work force or they have perhaps raised a family. Most importantly, they have been away from the classroom for several years by the time they take admissions tests.

The importance of remediation rates is that they measure the likelihood of students' eventually earning a degree. Students have to pay for remedial classes, but they don't get college credits for completing the courses. Therefore, having to take remedial classes throws them off schedule both financially and academically.

Universities and colleges have adopted several strategies to help remedial students, such as providing tutors, making classes smaller, offering preparatory programs in summer and grouping students together in several classes so they can support each other.

Based on the results of standardized tests, math is the toughest subject for students going to college. Of the incoming students who took the tests, 39.4 percent needed remedial help in math, while 30 percent needed remedial English and 25.6 needed remedial reading.

Of the Arkansas students who had to take remedial classes, a third had to take all three subjects - math, English and reading. About a fourth had to take remedial classes in two subjects and 41 percent had to take one subject.

Unemployment Insurance Trust Fund

Officials of the state Workforce Services Department reported to a legislative committee that the agency is paying down its debt to the federal government and is on track to eliminating its debt by 2015. The state will likely make a payment of $30 million this year on a debt of $330 million.

The legislature has taken action to stabilize the unemployment insurance fund, prompted by the state's rising debt to the federal government. Act 861 of 2011 froze benefits for unemployed workers and Act 802 of 2009 raised the basic wage on which employers pay unemployment taxes, from $10,000 to $12,000.

Week In Review

2012-01-19T15:05:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – In preparation for the fiscal session of the legislature that begins on February 13, the governor presented a balanced budget for state government for next year.

It would not provide cost-of-living increases for state employee salaries. It would increase funding of public schools from kindergarten through grade 12, in order to comply with constitutional mandates that the state provide an adequate education to all children. The governor's budget also would increase funding of Medicaid, a government health care program for people with disabilities, the elderly and the poor.

The governor's proposed budget is very conservative and the legislature will keep it that way. However, the legislature will likely exercise its constitutional power to make changes in the governor's spending plans.

Funding of drug courts is one area of dispute. The 41 drug courts throughout Arkansas have never had a stable and permanent source of funding. Every year or two, legislators find one-time sources of money to keep them operating.

On the second day of budget hearings this year, legislative supporters of drug courts were successful in getting a committee to approve the transfer of $3 million from the Tobacco Settlement Commission to the Department of Community Correction, which administers drug courts. The committee also voted to add two more drug courts to jurisdictions in eastern Arkansas. The governor's administration was against the transfer.

The dispute resulted in a delay in writing a budget for the Community Correction Department. It is one of several budget issues that will be resolved before the conclusion of the fiscal session.

K-12 education stands to receive an additional $56.6 million when the fiscal year begins on July 1. That would bring the state's Public School Fund to about $2 billion. Under the governor's budget, state aid to colleges and universities would increase only slightly - about $3.6 million next year.

State government provides more than $800 million to the 22 two-year colleges in Arkansas, where more than 45,000 students are enrolled, and to the state's 10 four-year universities, where almost 75,000 students are enrolled.

The Department of Human Services is the state's largest agency, with more than 8,300 budgeted positions and a yearly budget of more than $6 billion in combined state and federal funds. The Medicaid program accounts for about $4.3 billion in spending. It provides some form of health coverage to more than a fourth of all Arkansas residents. The governor's budget would increase Medicaid spending next year by $114.3 million.

The State Hospital would receive an additional $2.9 million. It has 226 beds for psychiatric inpatient treatment.

The governor has recommended adding about $7 million to the Correction Department Budget for inmate care and custody, bringing the total in that category to $338 million a year.

The legislature formed a special subcommittee to look into the operations of the state Forestry Commission, which has had to lay off 36 employees and which needs $2.7 million in excess of its previously approved budget in order to pay its bills by the end of the fiscal year on June 30.

In all, during the fiscal session legislators will authorize about $4.7 billion a year in discretionary spending for state government agencies.

Week In Review

2012-01-13T13:38:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – Fifteen Arkansas school districts and one technical center will receive money to expand and innovate course offerings in science, technology, engineering and math (STEM).

The grants were awarded under a program called STEM Works. The long range goal is to better prepare students in the fields that are most likely to provide well paid and secure jobs, now and in the future. STEM Works helps local high schools pay for the technology needed in modern classrooms. It also helps state colleges train a new generation of teachers who will work in technology fields.

Pilot projects were announced last summer, when Cross County High School in Cherry Valley and Lincoln High School in Washington County became the first "New Tech High Schools" to follow the STEM Works model.

At the time, state education officials said they wanted to add 10 more schools to the program, so they were pleased to announce last week that they have added 15 new schools and the technical center.

The Northark Technical Center, which serves 14 school districts in north Arkansas, will offer classes in engineering and biomedical sciences, with an emphasis on how those subjects are used in real workplaces. It is called "Project Lead the Way." Also receiving money to initiate "Project Lead the Way" are these school districts: Gravette, Jonesboro, Prairie Grove, Riverview and Star City.

Nine districts will join Cross County and Lincoln as schools in the "New Tech Network." Students will learn technology through hands-on projects, rather than using traditional classroom methods.

The nine districts are Arkadelphia, Dumas, El Dorado, Highland, Hope, Marked Tree, Riverview, Russellville and Van Buren. They will each receive $150,000. Cross County and Lincoln, the existing schools in the New Tech Network, will get $75,000. The districts in Project Lead the Way will get varying amounts of up to $95,000.

Another model that STEM Works will promote is based on the successes of the EAST Initiative in numerous Arkansas high schools. That stands for Environmental and Spatial Technology. Various state agencies have allocated $2.25 million for the STEM Works program and private industries have donated significant amounts.

Tiered Lottery Scholarships

The Senate and House Education Committees will look into changing how lottery scholarships are awarded, with a mind to encouraging students to stay in college to earn a degree. Currently, eligible students receive lottery scholarships in the same amount for up to four years. Students at four-year universities get $4,500 and those at two-year colleges get $2,225 a year.

With tiered scholarships, students would get greater amounts each year. Before the lottery scholarship program was established, Academic Challenge Scholarships used to be tiered. Freshmen received $2,500, for example. If students maintained the required grade average, they would get $3,000 as a sophomore, $3,500 as a junior and $4,000 for their senior year.

Legislators will look at how such a plan would affect lottery scholarship financing, and perhaps introduce a bill to establish tiered scholarships in the 2013 regular session.

Week In Review

2012-01-05T14:45:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – The new year began with good financial news for state government, although budget officials were careful to temper their statements with sober caution about potential long-term problems.

First, the governor and the director of the Human Services Department reported that the state Medicaid program appears to have enough money to get through the next fiscal year without a major shortfall.

Medicaid officials had been concerned that the health care program would fall short of revenue by about $60 million next fiscal year, in part because of increased enrollment. They expected increases in Medicaid enrollment of 5 percent a year because more people become eligible when unemployment worsens. However, enrollment growth has remained at about 2 percent a year.

Another piece of good news came in the December revenue report, which showed impressive growth over the same month last year. Net revenue for December was more than 9 percent greater this year than last year. Tax rates have not gone up, so the increase is a very accurate indicator of increased economic activity.

State revenue officials cautioned that the December revenue report reflected only one month's activity. It gives state agencies a small cushion against an economic downturn, but until the economy gets stronger we should not expect every month to produce such good numbers.

The long term prospects for Medicaid finances are mixed, paradoxically, because of the improved economic situation in Arkansas. Medicaid is a government-subsidized health care program that last year helped pay for medical services for 770,000 Arkansas residents.

The federal and state governments share in the costs of Medicaid. In poor states the federal government pays a higher percentage than in relatively prosperous states.

Per capita income in Arkansas grew faster than in many other states, and as a result the federal government share in Medicaid funding will drop from 71 to 70 percent in October. That decrease of 1 percent amounts to the loss of about $50 million in federal matching funds for Arkansas Medicaid. State government will have to come up with an equal amount, or else cut $50 million in services.

In other state budget news, the governor said he would ask for a supplemental appropriation of $2.7 million for the state Forestry Commission to get through the current fiscal year. The legislature will consider the request at the fiscal session, which convenes on the second Monday in February as mandated by the state Constitution.

About $1.2 million of the Forestry Commission appropriation would pay back a grant from the federal government that the Commission has already spent on operations. The other $1.5 million would pay Commission expenses until the end of the fiscal year, on June 30.

Also, the governor has said he may recommend asking for two other supplemental appropriations - one for the Correction Department and one for the Department of Community Correction. If the legislature approves the supplemental appropriations, they would authorize additional spending for the current fiscal year.

During the fiscal session, legislators will approve budgets for all state agencies. In preparation for the session they will conduct budget hearings in late January. State general revenue is projected to be about $4.6 billion for the current fiscal year. The bulk of that revenue is from state sales taxes, individual income taxes and corporate income taxes.

It Was A Good Christmas Day

2011-12-26T09:51:00.002-06:00

It was a great Christmas day. It appeared to me that Larry, Tana, Shelly & Chloe all had good Christmas mornings. As you can see from the above photo of some of Chloe's haul it may be March before she gets through it all. We worked in the morning church service - a good way to celebrate the birth of our Lord.

From our house to my mother's, from there to mother-in-law's and then back for everybody to try to rest and recover. My brother and sister-in-law and my nephews (Luke & John) are almost to Nashville and then we will do it all over again.

I am thankful for my family - I do love them all very much and I am thankful for a God who loved me enough to send His Son as the only perfect sacrifice for my sins. I am hopeful that I can keep the spirit of Christmas alive in my heart all year and that I will not forget to share God's love and His grace with you. God Bless

Grandbaby is home - It is almost Christmas

2011-12-23T07:53:00.002-06:00

Chloe came home last night because she was really missing her grand dad. Larry, Tana and Shelly and Chloe at home really made it seem like Christmas.

The picture is our tree about daylight this morning. Chloe had decided she should get up and look around. We still get a real tree every year and I like a lot of lights on the tree. Back before there were douglas firs available we used to spend hours hunting for a tree. Most of the firs are pretty and I think this tree was the second one I looked at.

At Teague & Teague Insurance we are open this morning - I don't know for how long but probably till shortly after lunch. Over the years I have learned that at this point in the season folks are not much inclined to talk insurance.

Merry Christmas and I pray that you remember that the birth of the Savior is the reason for the season.

Week In Review

2011-12-21T11:43:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – The highlight of state government news for 2011 came when the Arkansas legislature lowered state tax rates by $35 million a year.

The tax cut package includes tax relief for consumers in Act 755, which lowers the sales tax on groceries by half a cent, cutting state revenue by $20 million a year.

Another tax cut for consumers is Act 757 to make the first weekend in August a "back to school" sales tax holiday on clothing items costing less than $100 and accessories less than $50. No state sales tax is collected on school supplies that weekend. State revenue officials predicted it would save consumers more than $2 million.

The legislature extended tax relief to buyers of used cars, by raising the exemption threshold. Previously, you had to pay sales tax on a used car purchase of up to $2,500 and now you don't have to pay unless the car costs more than $4,000. This will save Arkansans an estimated $2.5 million a year.

Act 754, also passed by the legislature in 2011, will lower utility taxes for manufacturers by $5.27 million.

Arkansas lawmakers will keep close track of Act 570, a 167-page law passed in 2011 that changes sentencing laws to make sure there is always space in state prisons for dangerous offenders. Act 570 grants judges more flexibility to order supervised probation. If an offender violates the terms of his supervision the penalties are imposed immediately.

Legislators will continue to hear from local law enforcement agencies, state prison officials and prosecutors so they can gauge the long-term effect that Act 570 has on jail populations.

The major ethics legislation passed in 2011 is in Act 48, which prohibits lawmakers from becoming registered lobbyists until they have been out of office for at least a year. It will affect all legislators who run for re-election in 2012.

Act 48 also restricts the amount in expenses for which legislators can be reimbursed. When they attend out of state meetings, they will be reimbursed for the cheapest form of travel, whether it is by airline or by car. If an airline is more expensive they can still fly, but they will only be reimbursed mileage for the amount the trip would cost if they drove.

Act 861 stabilizes the finances of the state unemployment fund by freezing benefit levels. The act has helped replenish the unemployment trust fund.

In November voters approved the renewal of $575 million in bonds to pay for repairs to about 400 miles of interstate highways in Arkansas. Arkansas has 655 miles of interstate highway. A similar bond issue for interstate highway improvements was approved by Arkansas voters in 1999.

Arkansas public schools began a historic transition. Starting in 2011 they began teaching a more rigorous English and math curricula known as Common Core. They bring national education standards into Arkansas classrooms.

Act 987 of 2011 removes the limit on charter schools in Arkansas, which had been 24. When the number of charter schools gets to within two of the limit, the limit will increase by five. For example, if the state Board of Education approves 22 charter schools the maximum number allowed will go up to 29. There were 17 open enrollment charter schools in Arkansas at the beginning of the school year.

Week In Review

2011-12-16T13:43:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – The Arkansas Development Finance Authority is a relatively small state agency in terms of staff and office space. However, the agency is rather large if you measure its economic effect on the Arkansas business community and the state's housing market.

ADFA has received a new federal grant of $13.1 million that it will use to help small business obtain financing. The agency has a successful track record in managing previous federal grants, using the money to help small businesses and minority-owned businesses hire more workers, buy new equipment and install innovative technology.

One factor in the success of the loan programs is the involvement of private lending institutions. Each dollar provided by the ADFA loan program is expected to leverage an additional $10 in private investments, so the grant will ultimately provide $130 million in investments for small businesses in Arkansas.

Small businesses represent the overwhelming majority of businesses in Arkansas. More than half a million Arkansas jobs are in small businesses.

ADFA finances numerous economic development programs that promote investment in agri-business, port facilities, tourism, waste water projects and venture capital for emerging technologies.

The agency also has loan programs that help people with low and moderate incomes buy houses, and help developers finance the construction of affordable apartments.

ADFA has 50 employees in three divisions - housing, development finance and agriculture/aquaculture. The agency is one of state government's major sources of financing for low-income housing and bonds for infrastructure projects and small business development.

Crime Victims Reparations

Crime victims in 143 new cases and 20 old cases received more than $220,000 in reparations in November.

The state attorney general's office administers the crime victims reparations program, which last year awarded $3.3 million in claims in 1,704 cases. The legislature created the crime victims reparations program in 1987. The money comes from court costs and fees, as well as fines paid by convicted criminals.

Claims are awarded to victims to compensate for lost wages, medical costs, counseling, funeral expenses, cleanup of crime scenes and replacing lost or broken eyeglasses and hearing aids. The program does not pay for attorneys' fees, property loss or pain and suffering.

Most individual awards are for $10,000 or less, but can be as much as $25,000 if the crime victim suffered catastrophic injuries that caused total and permanent disability.

Heart Disease Improvements

According to a recent report from the state Health Department, the number of Arkansas residents with heart disease has gone down slightly over the past five years. This is important because heart disease kills as many Americans as cancer, accidents and respiratory diseases such as pneumonia every year.

In 2006 physicians diagnosed 7.7 percent of Arkansans with some form of heart disease. By 2010 the rate had declined to 7.1 percent. West Virginia and Kentucky reported the highest rates of heart disease in 2010, with 8 and 8.2 percent respectively.

Public health officials attribute the improvement to a reduction in smoking rates and the fact that more people are controlling high blood pressure and cholesterol levels. Other risk factors are obesity, lack of physical activity and poverty.

Delight Christmas Parade and Search & Rescue

2011-12-12T08:35:00.003-06:00

Saturday I was Grand Marshall of the Delight Christmas Parade. My friend Terry Allgood was my driver in his 1959 Ford Galaxie. It was a great car with everything original except for new carpeting and it had less than 29,000 miles. I really appreciate the fine folks at Delight inviting me to lead the parade. They always have a good turnout and I love to throw candy to the little ones - and older ones too.

At some point I had a brain lapse and signed up to take an intro Search & Rescue class Saturday and Sunday. The instructors were interesting and very knowledgeable and I really enjoyed the class and those in the class with me. I have always been interested in how to work a compass and how orienteering works. We spent a whole morning working with our compasses and that was fun. The next level Search & Rescue class is 6 days with a night spent out surviving on just what is carried in your backpack. I don't know that I will need to step up to the next level but I could have another brain freeze and get myself committed.

Week In Review

2011-12-09T16:54:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – Provisions in the Arkansas tort reform law limiting punitive damages that can be awarded in a civil suit were ruled unconstitutional by the state Supreme Court.

The ruling came in a lawsuit out of Lonoke County filed by rice farmers against a German multi-national corporation. The farmers claimed that their rice was contaminated by genetically altered strains that had not been approved for human consumption. The rice farmers won $5.9 million in compensatory damages and $42 million in punitive damages.

One of the more important provisions in Act 649 of 2003, Arkansas' tort reform law, had limits on punitive damages of $1 million. The Supreme Court ruling upheld a Lonoke Circuit Court ruling that the limit on punitive damages was unconstitutional.

Act 649 also limited awards in medical malpractice cases to the amounts actually billed. That provision was stricken by a state Supreme Court ruling in 2009. Another 2009 ruling by the Supreme Court struck down a provision in Act 649 that changed how fault and liability would be assigned among numerous parties who are found to be at fault. Defendants would pay according to a formula, based on their degree of fault, rather than having the defendant with the most money paying the most in damages.

In each case the Supreme Court relied heavily on the separation of powers articles in the constitution, which outline the powers of the legislative, the judicial and the executive branches. The court ruled that provisions in Act 649 are the prerogative of the Supreme Court and its committees on rules, evidence and procedure.

Last week's ruling by the high court struck one of the last remaining significant provisions of Act 649.

The German corporation had been conducting field trials of the genetically altered strains of rice. The tests took place in Louisiana, but the strains began showing up in Arkansas. The Lonoke County farmers argued that during the testing, the corporation had negligently allowed cross pollination with conventional strains of rice.

The presence of contaminated rice caused a severe decline in exports of Arkansas long grain rice from 2005 through 2008, because in many foreign markets genetically altered crops are prohibited. The loss of markets drove down the price of long grain rice and the rice farmers filed suit in Lonoke County Circuit Court in 2006.

In a pre-trial motion the rice farmers asked the circuit court to declare unconstitutional the limits on punitive damages in the Arkansas tort reform law. Their argument was that the limits violated the separation of powers doctrine in the state constitution.

States Against Robo-calls to Cell Phones

The Arkansas attorney general is one of 53 attorneys general from the 50 states and U.S. territories who have asked Congress to reject a federal bill that would allow telemarketers to make automated "robo-calls" to cell phones. Robo-calls for commercial purposes are prohibited in Arkansas and many other states, but federal laws pre-empt state laws.

A robo-call is a tape recorded message, rather than a call from a live person. Computers can cheaply generate thousands of robo-calls in brief periods of time. When a person receives a robo-call on his cell phone, it costs in either minutes or money.

H.R. 3035 is in the Committee on Energy and Commerce of the U.S. House of Representatives. It would open loopholes in state and federal "Do Not Call" statutes, under which people can sign up to prevent telemarketers from calling them. H.R. 3035 is supported by collection agencies and financial service industries.

Governor's Official Revenue Forecast

2011-12-02T11:24:00.002-06:00

If you don't want to read all of this here is a short summation:

For Fiscal Year 2013, net available revenues are expected to increase $161 million or 3.5% above the net available revenues for this year, FY12. However, today’s forecast has been revised downward by a total of $121.3 million from the forecast for FY13 presented in November 2010. The downward revision is due to lower economic expectations and tax policy changes from the session.

December 1, 2011

The Honorable Mary Anne Salmon, Co-Chair

The Honorable Tommy Lee Baker, Co-Chair

Arkansas Legislative Council

State Capitol

Little Rock, Arkansas 72201

Dear Senator Salmon and Representative Baker:

In accordance with Arkansas Code Annotated §19-4-304 (b) (1), I am submitting our Official General Revenue Forecast for the 2011 – 2013 Biennium. This law states that the Director of the Department of Finance and Administration shall submit the annual revenue forecast to the Legislative Council not later than December 1 of the year preceding a fiscal session. Included in the tables are selected economic assumptions and the details of the updated revenue forecasts for Fiscal Years 2012 and 2013.

Summary of Net Available Revenues:

Actual

In FY 2011 net available revenues totaled $4,572.8 million, an increase of $249.7 million or 5.8% from FY 2010. Net available revenues for distribution totaled $4,478.9 million, an increase of $155.8 million from FY 2010. The difference of $93.9 million between total net available funds and net available for distribution was transferred to revenue allotment reserve fund as surplus.

Forecast

For FY 2012 net available revenues are expected to reach $4,566.5 million, a decrease of $6.3 million, or -0.1 percent from FY 2011 net available collections. Year-to- date actual growth after four months in the fiscal year has been 2.7 percent above year earlier levels, resulting in $9.9 million above forecast at that point. The forecast for FY 2012 is unchanged from the forecast released on April 21st and the current budget.

The forecast is expected to fund the allocations 100% of “A” + $2.5 million for Rainy Day Fund set aside in the current Revenue Stabilization Law.

For FY 2013 net available revenues are expected to reach $4,727.5 million, an increase of $161.0 million or 3.5 percent above FY 2012. We last presented a preliminary economic forecast for FY 2013 on November 10^th, 2010, prior to the last regular session. Subsequent to that forecast we have revised economic expectations and included tax policy changes from the session. This forecast is lower by a total of $121.3 million. This includes a reduction of $87.2 million attributable to the economic forecast revision. The remainder is from tax policy changes and other adjustments.

Economic Forecast Assumptions

Recent downward revisions of economic forecasts by contract providers and other forecasting groups point to less robust recovery for the remainder of FY 2012 and FY 2013. These revisions reflect a combination of near-term reaction to U.S. activity indicators and concerns for global market prospects for growth, particularly in Europe. Beyond FY 2012 expected growth was also reduced to reflect a slower path for labor market recovery with implications for consumer contribution to domestic market growth.

The risk of a return to recessionary economic and business conditions is still elevated, but not part of the baseline simulation. Many sectors of the economy remain close to the low point observed during the last official recession in 2008. More importantly for FY 2013, the forecasts account for a more realistic pattern of slow recovery for the next few years during a protracted period of consumer debt deleveraging, reluctance to hire, and generally weaker growth prospects compared to previous cycles of recovery.

Anticipation of weak growth helped limit the impact of these revisions in the U.S. and Arkansas forecasts for FY 2013. No change is expected in the FY 2012 forecast as a result of conservative forecasts that anticipated recent downward revisions in the near-term economic prospects.

I have attempted to provide this information in a format that facilitates your work. A narrative summary of the revenue forecasts and tables for quick reference are included with this letter.

Sincerely,

Richard A. Weiss

Director

RAW/jps

Attachments (2)

STATE AND NATIONAL ECONOMIC AND REVENUE FORECASTS

The following sections summarize the economic outlook for the nation and Arkansas for the next two years with comments updating current year conditions. The Official Revenue Forecast for the 2011-2013 Biennium Forecast is included.

The revenue forecasts are conditionally based on the expected economic conditions in the state and nation for the remainder of the biennium as of September 2011. The economic forecasts were compiled from simulations, representing structural economic modeling systems at IHS Global Insight, Inc., a national forecast provider. The Arkansas economic forecast was derived from U.S. and Arkansas-specific model simulations with consistent economic relationships across sectors and linked models. The Office of Economic Analysis and Tax Research, Office of the Director, DFA, prepared the general revenue forecast.

Economic and Revenue Estimates for the 2011–2013 Biennium

Summary of Economic and Revenue Estimates for FY 2012

· FY 2012 U.S. Gross Domestic Product (Real Output). This summary is based on the September 2011 baseline forecast of IHS Global Insight, Inc. During FY 2012, the United States economy is expected to produce final goods and services valued in inflation-adjusted dollars at $13,387 billion, or an increase of $175.8 billion or 1.3 percent. Two general measures of inflation indicate limited price pressures during the year. The Consumer Price Index is expected to increase 2.8 percent and the GDP price deflator is expected to rise by 1.8 percent.

· U.S. gross domestic product in current dollars is estimated at $15,280 billion, an increase of $474.0 billion or 3.2 percent over FY 2011.

· Average annual U.S. oil prices are estimated at $98.0 per barrel (domestic crude for refiners) in FY2012. Continued growth in global demand for oil and gradual improvement in domestic macroeconomic conditions will support limited upward price movement. Weekly and monthly price swings could vary widely around the annual averages.

· FY 2012 state nonfarm personal income is estimated at $100.7 billion (current dollars), an increase of $3.69 billion or 3.8 percent over FY 2011.

· FY 2012 state wage and salary disbursements are estimated at $46.6 billion, an increase of $1.32 billion or 2.9 percent. Total disbursements reflect the combined effects of net job growth, longer average work weeks, and any gains in wage rates, bonuses, or level of overtime pay rates.

· FY 2012 state payroll employment is expected to reach a level of 1.183 million jobs, an increase of approximately 13,080 jobs or 1.1 percent.

FY 2012 Gross General Revenues

Gross general revenues are estimated at $5,757.4 million, an increase over FY 2011 of $84.0 million, or 1.5 percent.

In addition to the usual deductions from gross general revenues, such as the Constitutional Officers Fund, the State Central Services Fund, and refunds of individual and corporate income taxes, the following trust fund is noted:

Act 1315 (1999) Educational Excellence Trust Fund. Act 1315 (1999) established a benchmark of 14.14 percent which is applied against actual sales and use tax collections of the previous fiscal year. Under this formula, $280.0 million is estimated to be distributed (net) in FY2012.

FY 2012 Net Available General Revenues

Net available revenues are estimated at $4,566.5 million, a decrease of $6.3 million or

-0.1 percent compared to FY 2011.

FY 2012 Selected Special Revenues:

FY 2012 Educational Adequacy Fund: Act 107 of the Second Extraordinary Session of 2003 increased the state sales and use tax rate from 5.125% to 6.0%, effective March 1, 2004. Effective July 1, 2004, a new sales tax on selected services went into effect in addition to an increase in vending machine decal fees. Act 94 increased the minimum corporate franchise tax and the tax rate, effective for calendar years beginning January 1, 2004. Effective with FY 2008, a portion of the six-cent per gallon dyed diesel tax is also deposited to the Educational Adequacy Fund to partially offset the revenue loss from exempting dyed diesel from sales tax.

The additional revenues are deposited as special revenues to the Educational Adequacy Fund to be used to fulfill the financial obligations of the state to provide an adequate educational system. Estimate for FY 2012: $433.7 million.

FY 2012 WorkForce 2000 (Special Corporate Income Taxes). Act 1315 (1999) established a benchmark of 6.78 percent which will be applied against net corporate income tax collections in the previous fiscal year. Under this formula, $24.7 million is estimated to be distributed in FY 2012.

· FY 2012 Soft Drink Excise Tax (Medicaid Program Trust Fund). In FY 2012, the soft drink excise tax is forecast at $46.5 million, representing no change compared to FY 2011 collections.

Summary of Economic and Revenue Estimates for FY 2013

· FY 2013 U.S. Gross Domestic Product (Real Output). During FY 2013, the United States economy is expected to produce final goods and services valued at $13,661 billion in inflation-adjusted dollars, an increase of $274.4 billion or 2.0 percent. The two inflation measures of consumer price index (CPI) and GDP price deflator are expected to remain below trend but slightly higher than projected FY 2012. The consumer price index (CPI) is expected to increase 1.5 percent and the GDP price deflator is expected to increase 1.1 percent in FY 2013.

· U.S. gross domestic product in current dollars is estimated at $15,769 billion for FY 2013, an increase of $488.4 billion or 3.2 percent.

· Average annual U.S. oil prices are estimated at $105.1 per barrel (domestic crude for refiners) in FY 2013. Oil prices are expected to rise with gradual increase in domestic demand and continued global economic growth. Weekly and monthly price swings could vary widely around the annual averages.

· FY 2013 state nonfarm personal income will reach $104.2 billion (current dollars), an increase of $3.5 billion or 3.5 percent over FY 2012. Growth will be held down by limited employment gains, minimal wage-based inflation, and moderate growth in transfer payments. Non-wage income growth will be lower in FY 2013 than in recent years while wage disbursements and proprietor incomes recovery slightly compared to FY 2012.

· FY 2013 state wage and salary disbursements are estimated at $48.5 billion, an increase of $1.9 billion or 4.1 percent.

· FY 2013 state payroll employment is estimated to grow from a level of 1.183 million jobs in FY 2012 to 1.199 million jobs in FY 2013. This represents an increase of approximately 16,000 jobs or 1.3 percent.

FY 2013 Gross General Revenues

The forecast for gross general revenues in FY 2013 is $5,931.7 million, an increase of $174.3 million or 3.0 percent over FY 2012.

Act 1315 (1999) Educational Excellence Trust Fund. Act 1315 (1999) established a benchmark of 14.14 percent which is applied against actual sales and use tax collections of the previous fiscal year. Under this formula, an estimated $285.8 million may be distributed (net) in FY2013.

FY 2013 Net Available General Revenues

For FY 2013, net available general revenues are estimated at $4,727.5 million, an increase of $161.0 million or 3.5 percent over FY 2012.

FY 2013 Selected Special Revenues:

FY 2013 Educational Adequacy Fund: Act 107 of the Second Extraordinary Session of 2003 increased the state sales and use tax rate from 5.125% to 6.0%, effective March 1, 2004. Effective July 1, 2004, a new sales tax on selected services went into effect in addition to an increase in vending machine decal fees. Act 94 increased the minimum corporate franchise tax and the tax rate, effective for calendar years beginning January 1, 2004. Effective with FY 2008, a portion of the six-cent per gallon dyed diesel tax is also deposited to the Educational Adequacy Fund to partially offset the revenue loss from exempting dyed diesel from sales tax.

· FY 2013 WorkForce 2000 (Special Corporate Income Taxes) Act 1315 (1999) established a benchmark of 6.78 percent which will be applied against net corporate income tax collections in the previous fiscal year. Under this formula, an estimated $23.1 million may be distributed (net) in FY 2013.

· FY 2013 Soft Drink Excise Tax (Medicaid Program Trust Fund). In FY 2013 the forecast is $46.5 million, representing no change compared to FY 2012.

Office of the Director,

Economic Analysis and Tax Research,

Department of Finance and Administration

December 1, 2011

Week In Review

2011-12-01T19:28:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – Local law enforcement agencies in Arkansas and all across the United States got some good news recently when the federal Department of Justice announced that funding for cleanup of meth labs had been partially restored.

The grant program was cut earlier this year, leaving state and local governments with the bill for cleanup.

When the police shut down a meth lab, officers cannot simply walk away from the scene. It requires trained personnel who know how to handle and dispose of hazardous materials. It costs as much as $2,000 to clean up a single meth lab and sometimes more. If it is a large operation the costs can be much greater.

Training is essential to avoid injury. Improper handling of the substances left behind at a meth lab can cause flash fires, and inhaling the chemicals can severely damage your health.

Last year, before the federal grants were cut off, Arkansas law enforcement agencies received $925,904 for cleanup of meth labs. That was the fifth largest amount awarded to a single state.

Arkansas will probably not get as much when the new round of grants are disbursed, because the total amount of the federal grant program is not as large. Last year it totaled $19.2 million nationwide and the new program is for $12.5 million.

Spokesmen for police departments and sheriffs' offices in Kentucky, Missouri, Indiana, Oklahoma, Michigan and many other states welcomed the announcement. The abuse of methamphetamine has dramatically affected rural areas throughout the United States, straining the capacity of jails and prisons to hold convicted offenders and straining the finances of local governments that must clean up the lab site.

During the period when funding was not available, many law enforcement agencies responded by training a few officers how to neutralize and dispose of chemicals. In many cases they transported the hazardous materials to a privately operated disposal site.

Some states are setting up depots where law enforcement can bring chemicals and hazardous substances from a meth lab. If several depots were spread throughout the state transportation costs could be lowered significantly. When private companies get a contract to clean up meth labs, one of their major costs is transportation.

A spokesman for the federal Drug Enforcement Administration said the agency was working on how best to disburse the new round of cleanup funds. He indicated that a portion of the grant funds would be dedicated to setting up containers in centralized locations.

The example of Missouri shows how placing containers around the state can hold down transportation costs. Missouri's Department of Natural Resources had already placed them in more than 20 locations when federal grants were cut off earlier this year. However, the effect on Missouri's cleanup programs was not as bad as it was in other states, in large part because the cost of cleaning up an individual meth lab averaged only $500 to $600 in that state, according to news reports out of Missouri.

In talking about the role of the Missouri Natural Resources Department in setting up safe sites for disposal of chemicals, a spokesman for sheriffs said that cleaning up contamination from meth labs is a job that combines law enforcement and environmental protection.

The First Fire in the Fireplace for the Year

2011-11-28T08:33:00.002-06:00

I love a fire in the fireplace. Yesterday was plenty cold enough so I could not wait to build a fire. I have not bought any new firewood this year so it didn't take but a minute for it to light up. I need to burn up all of my old wood and not buy any this year but I start remembering the ice storm or snow storm when we went days without electricity and I always decided that I had better buy a load or two of wood.

I was in Mena yesterday morning at the First United Methodist Church filling in the pulpit for my friend the Reverend Gary Harrison. They were very nice to me and they have a beautiful church. I arrived there early enough that I was able to attend a Sunday School class - I really enjoyed being in there. I appreciate any opportunity the Lord provides for me to preach. I have been a Methodist Lay Speaker for about 8 or 10 years now.

Week In Review

2011-11-28T08:32:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – The governor has authorized a transfer of money from an emergency fund so that trial court assistants will be paid through December.

However, the funding problem of the trial courts likely will continue unless there is a sudden turnaround in collections of filing fees and court costs. They have gone down dramatically since the summer. The salaries of the trial court assistants are paid from filing fees and court costs.

The legislature can address the problem during the fiscal session, which convenes in early February, 2012. Some legislators had hoped that the governor would use enough money from his emergency fund to pay the trial court assistants until the fiscal session, when the General Assembly could replenish it. They expect the problem to recur in January.

Judges are taking steps in hopes that trial court assistants will not have to cut salaries of the assistants. For example, reimbursements for their travel expenses have been canceled. Also, when the assistants are absent from work the trial courts will not hire substitutes.

The Arkansas Judicial Council is made up of Arkansas circuit judges and Court of Appeals Judges, as well as justices of the Supreme Court and retired judges. The Administration of Justice Fund is where court costs and filing fees are deposited. Besides trial court assistants salaries it pays for a couple of dozen other programs and all of them have been forced to reduce spending.

Finding a steady source of revenue for the 41 drug courts in Arkansas is another issue that some legislators want to bring up during the fiscal session.

Funding for drug courts was scheduled to run out in October, but the state Health Department released enough money from a tobacco settlement account to keep drug courts operating until the fiscal session.

When the state resorts to stopgap measures to maintain programs, in this case drugs courts and trial court salaries, it raises the question of how to most efficiently and wisely spend tax revenues.

Many elected officials strongly believe that it is misguided to use "one time" money to pay for continuing operations. The money in the governor's emergency fund is a text book example of a fund that is dedicated to "one time" expenses such as helping people after a flood or a tornado. Salaries and the operations of trial courts are good examples of ongoing expenses. The legislature expects to budget for them every year.

Arkansas Law on College Athletics

The National Collegiate Athletic Association (NCAA) recently sponsored a summit at Washington, D.C., to address concerns about violations of its by-laws and the corrupting influence of money, unscrupulous boosters and agents who don't follow NCAA rules.

Delegates discussed the possibility of using Arkansas Act 204 of 2011, the Athlete Agent Reform Act, as model legislation for other states to enact to effectively curb many of the abuses caused by agents.

Act 204 increases the penalty for agents who initiate contact with college athletes before the athlete is eligible to turn professional. The fine had been $50,000 and now it is $250,000.

The state Attorney General's office sent a representative to explain the Arkansas law at the summit, which was attended by university officials, agents and National Football League officials.

Week In Review

2011-11-18T13:56:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – The state Board of Education denied applications from organizations seeking to open charter schools for at risk youths in Texarkana, West Memphis and Jonesboro. The Board also denied a request to open a bilingual charter school in Little Rock for Spanish speaking students learning English as a second language.

The Board postponed making a final decision on a fifth application, for a regional charter based in Marianna that would offer alternative education for students who have been expelled or have dropped out.

A new law enacted by the legislature earlier this year removed the limit on the number of open enrollment charter schools that can operate in Arkansas. The limit is 24 and there are 17 now in operation.

Act 987 of 2011 says that when the number of charter schools gets to within two of the existing limit, the limit automatically goes up by five. That means when the Board of Education approves 22 charter schools, the limit will go up by five from 24 to 29 schools.

When the application period opened 14 organizations wrote to the Board indicating their interest in applying for a charter school. However, not all followed through and only five official proposals were presented to the Board.

The Board determined that the application to open a regional charter in Marianna needs more work. It is scheduled to come back before the Board in January. The school would be a technical institute geared for students who have dropped out, have been expelled or have got into legal trouble. It would serve a five-county area in eastern Arkansas.

Charter schools are publicly funded. They do not have to comply with all the regulations that govern traditional public schools, as an incentive to experiment with innovative learning strategies. Charter schools often focus on teaching children from disadvantaged backgrounds, or children with exceptional skills.

Hot Springs Rehab Center Changes

The Arkansas Career Training Institute may be better know by most people in Arkansas as the Rehab Center. A prominent sight in downtown Hot Springs, the facility rises up the mountain at the south end of Bathhouse Row.

The institute will close its 24-bed acute care hospital, at the urging of federal officials who believe it would be more efficient for the institute to pay for medical treatment of clients elsewhere, rather than operating a full time hospital. The rehab center's hospital has averaged three patients a day for the past several years.

The decision means that the institute will no longer need to buy expensive medical equipment in order to keep up with medical providers that routinely purchase state-of-the-art technology. It also means the loss of 20 to 30 full time positions, depending on how much care the institute will continue to provide. It now offers physical and occupational therapy, in addition to psychiatric counseling, medical care and a broad range of other services.

The rehab center, which can house up to 320 people with disabilities, provides vocational rehabilitation to help people find jobs. A task force, with input from employees, will determine the center's new medical role over the next six to 12 months.

The institute is a part of the Arkansas Rehabilitation Services division of the state Career Education Department.

VETERAN'S DAY

2011-11-11T09:52:00.003-06:00

THANK YOU to all those who serve and have served and to those who gave their lives in service to our country. It is my prayer that God will bless each of them and you.

Week In Review

2011-11-10T17:23:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – Arkansas voters overwhelmingly voted to renew a bond program that will pay for improvements to more than 400 miles of interstate highways.

The bonds must be issued by December, 2015 but most will be issued in 2012 and 2013, a Highway and Transportation Department spokesman said. Issuing bonds is a way of borrowing money. The statewide vote authorized the Highway Department to issue bonds of up to $575 million. Combined with other sources of state and federal revenue, the vote clears the way for a $1 billion program to upgrade Arkansas interstates.

The bonds will be paid off with future federal highway funds and with the revenue from four cents of the state's motor fuels tax on diesel. The diesel tax will not go up as a result of the vote, and it would not have gone done had voters disapproved the bond issue. The issue was whether the state should borrow money in order to repair highways more quickly, as opposed to scheduling highway projects on a "pay as you go" basis.

The bonds will be for 12 years. The highway improvements they finance should outlast the debt. An argument that some opponents made against the bond issue was that the state would still be paying off debt after the roads need to be repaired again. That should not happen, a Department spokesman said.

A factor in support of issuing bonds was that immediate repairs would be less costly, over the long term. Waiting for revenue to flow under the traditional "pay as you go" method means that the condition of highways is worse when money finally becomes available.

After Arkansas voters approved a similar $575 million highway bond issue in 1999, projects to repair 355 miles were in progress within three years. Under a "pay as you go" method it would have taken 20 years, according to the Highway Department spokesman.

It costs from $1 million to $4 million per mile to repair interstate highways. Sections with a bridge or an overpass are more expensive. Arkansas has 655 miles of interstate highways.

The total net interest paid on the bonds approved by voters in 1999 will be $208 million, according to a fact sheet prepared by the Highway Department. Over the 14 year life of the bonds that averages less than $15 million a year in interest expense.

The outstanding balances of three issues of the 1999 bonds were combined and refinanced last year to take advantage of lower interest rates. Their interest rate is 1.404 percent. According to the Highway Department, current interest rates on 12-year bonds is 2.9 percent.

Other expenses included in the 1999 issue were for bond counsel, rating agencies, financial advisors and printing costs. Those expenses total $938,000.

Turnout in the special election was very low. Late on election night it was estimated to be slightly more than 6 percent, but results were not complete from all the 75 counties in Arkansas.

Early and unofficial results showed that support for the bond issue was about 80 percent. A factor cited frequently by supporters of the bond issue was the fact that highway construction projects financed by the interstate repair program would create thousands of jobs.

Revenue from the bonds may not be used to build new interstates, nor to add lanes to existing interstates. However, it can be used to improve interchanges.

Marine Corp League in Mena

2011-11-07T11:10:00.002-06:00

The Herbert Littleton Detachment #1261 of the Marine Corp League had their annual banquet on Saturday night. I was invited to be the guest speaker and I really enjoyed the opportunity. My father, Herschell, was a 17 year old Marine in Korea. Mom said he arrived in Korea on Christmas Day 1952. I had several old Marine tales to tell but there just wasn't enough time. I think that I was the only three year old in Okay, Arkansas that could sing the Marine Corp Hymn.

Anyway, I had a good time and I appreciated the opportunity to visit with the group. There were quite a few there that I had never had the chance to meet before and I wish my old dad could have been there with me.

Kiwana's Club in Hope

2011-11-03T11:10:00.004-05:00

Tuesday I had the opportunity to visit the Hope Kiwana's Club. My friend and colleague Representative Powers was originally scheduled to speak but had a conflict come up so I was happy to fill in. The club was honoring local law enforcement and others who work in various government positions. After the meeting a trooper was going to do a demonstration with his drug dog - I didn't stay for it because my granddaughter was really wanting me to come play with her.

Week In Review

2011-11-03T11:10:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – The first nationwide test of the Emergency Alert System will take place at 1 p.m. on Wednesday, November 9. The test will be transmitted over radio and television stations, satellite TV and satellite radio networks, cable TV and wireline video services.

For years state and local emergency management agencies have tested similar alert systems on a monthly basis, which warn the public of threatening weather and other emergencies. The November 9 alert will look and sound familiar to the public. For example, listeners will hear a voice stating clearly that "this is a test."

The November 9 test will be a first because of its national scale. Past tests have been at the state or local level, but there has never been a nationwide test like the one that will be conducted on November 9. According to the Federal Communications Commission, only a nationwide test will allow emergency management officials to predict how well the system will function in the event of a large scale disaster that affects numerous states, such as an earthquake or a tsunami.

Officials at the FCC and the Federal Emergency Management Agency will watch for anomalies resulting from the use of national computer codes, rather than state and local codes. They will watch the video closely, especially lettering that spells out "this is a test." Audio is supposed to be exactly the same all across the country, but the video images are expected to vary. Officials want to eliminate any problems with visual images so that the alert system is effective for people with hearing impediments who rely on captions.

The test should last about three minutes. Federal officials chose to perform the test in the middle of the afternoon on November 9 so as to minimize disruptions and confusion. The hurricane season will be at its end and the winter severe storm season will not have begun. The test will take place during most people's work hours, to avoid potential confusion during rush hour traffic.

The test will not be heard on mobile telephones or mobile communications devices.

Punitive Damages In Rice Lawsuit Under Appeal

A major feature of the Arkansas tort reform law, a limit on the amount of punitive damages that plaintiffs may be awarded in a civil suit, is under challenge before the state Supreme Court.

Supreme Court justices heard oral arguments in a case in which a group of Arkansas rice farmers won punitive damages from a German corporation that allowed genetically engineered grains to contaminate the commercial rice supply. Farmers sued for damages because the contamination meant they were unable to sell their rice at regular market prices.

The Arkansas rice farmers won in Lonoke County Circuit Court and were awarded $42 million in punitive damages, in addition to $6 million in compensatory damages. The corporation has appealed and one of its arguments is that the punitive damages exceed the limits in Act 649 of 2003, the Arkansas tort reform law.

Act 649 had the support of the business community, which had long wanted tort reform to limit damages awarded in civil suits. It was opposed by trial lawyers.

The case out of Lonoke County is one of several in which rice farmers have successfully sued, or received settlements, because of the contamination of the rice supply by the German corporation.

Week In Review

2011-10-27T16:14:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The Arkansas Teacher Retirement System is recovering well from the stock market declines of 2009 and is in solid financial health.

The Board of Trustees met recently to approve a new set of economic assumptions, which its actuaries will use to calculate the long-term financial condition of the state's largest retirement system.

One of the major changes was to lower the projected long-term increase in teacher salaries from 4 percent to 3.25 percent a year. The change was based on factors such as the Arkansas law that requires a balanced budget, the health of the Arkansas economy and the state's political climate.

As of September 19, the system paid benefits to 33,782 retirees. There are 89,624 active members currently contributing into the system. Its net asset value on June 30 was $11.7 billion, but that amount changes daily and because of the volatility of the stock market it can change dramatically.

The system's assets are diversified among domestic and global stocks, fixed income securities and smaller categories like real estate and timber holdings.

The system's actuaries will report back to the Board on December 5. Their report will take into account a demographic trend - retirees are living longer, which means that over their lifetimes the system will pay them more in benefits.

When the stock market crashed in 2009 the system's assets declined by about $2 billion, but since then that amount has been recovered. In the fiscal year that ended June 30 the system's investments gained in value by 22.3 percent, which represents a $2 billion increase .

Since June 30, 2009, the system's unfunded liabilities have gone down by about $1.5 billion, from $5.2 billion to $3.7 billion.

The systems' finances also will improve, although in relatively smaller amounts, because the legislature enacted 19 bills in the 2011 regular session to protect its financial integrity. For example, under Act 69 of 2011 members who purchase years of service will have to pay the actual value, according to actuarial estimates. Previously, they purchased years of service at a discount.

It will take several years for the full effect of the legislation to be felt, but estimates are that in the first year they will save the system about $10 million. Over time they will save $30 million a year and quite possible more.

Actuaries are the "numbers crunchers" who calculate a wide array of financial and demographic data. When they make projections about future earnings, and when they account for past and present earnings, they combine earnings reports in four-year groupings. Therefore, when the actuaries make their official report to the Board, last year's 22.3 percent increase in asset value will be averaged with past years when the stock market performed so poorly.

It's a way of "smoothing" the dramatic spikes and troughs that occur in the stock market, in order to get a more accurate picture of the system's long term performance.

Another way that retirement systems gauge their long term financial health is to measure the years it would take to pay off all benefits that members have earned over their expected lifetimes. The Arkansas Teacher Retirement System currently has an amortization period of an estimated 52.4 years. Actuaries and retirement officials expect that period to lengthen to 60 or perhaps 70 years when the next report is submitted to the Board.

New Millennium & SW Arts & Howard Cattlemen's

2011-10-25T19:16:00.002-05:00

I was in Hope yesterday at about 2:00 for the ribbon cutting for the New Millennium joist plant in Hope. It was a good event with the Governor down to help us celebrate it. I often say that jobs are the answer to most of the ills we have in southwest Arkansas. We need more opportunities to celebrate new jobs and we continue to work on both the state level and the local level to create jobs.

This evening I ran back to Hope for the Southwest Arts event at the Yerger Middle School. They cook food of all sorts of international flavor. Their after school program with at risk young people does really good work and I appreciate their efforts.

Back in Nashville I stopped by the Howard County Cattlemen's Association last meeting of the year - and yes I did eat again. I love their sliced brisket.

As you might imagine I was able to shake quite a few hands at all the events and I was even persuaded to show a few people might pretty little grand daughters picture.

I know that I am off to Mena tomorrow afternoon for a meeting. Hopefully I will report in on it later.

Ink Fire Department BBQ

2011-10-22T20:46:00.002-05:00

I had a pretty low key day today. My grand baby, Chloe, was coming to town so I stayed pretty close to see her.

I did take some time this afternoon to ride up to the Ink community to support their fire department and visit with the fine folks in Polk County. The food was good and I enjoyed meeting and making some new friends.

Just stopped by the office after checking on my mom. Heading home, I think Chloe probably can't go to sleep without a kiss from her grand dad. Hope you had a good day.

Week In Review

2011-10-21T13:32:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Arkansas has 19 WAGE centers and the Department of Career Education is working to add three more by the end of the year.

WAGE is a job training program run by the department with help from local employers. It's for students with skills below the ninth month of the 12th grade. They study at a local adult education center or community college and if they pass they receive one of three state-issued certificates. The certificates are in Industrial, Clerical and Employability.

Employers participate by allowing educators to visit their place of business and do an analysis of the skills needed by workers. The educators use the analysis to create a customized set of competencies for students to learn if they want to work in that business. Perhaps the student already has a job at the business and wants to move up in responsibility.

Participating employers usually agree to give added consideration to job applicants who have earned a WAGE certificate. If an incumbent employee wants to get WAGE certification the employer often allows them leave time for classes.

WAGE is a trademarked term that stands for Workforce Alliance for Growth in the Economy.

Students learn 112 basic skills in mathematics, communications, reading and writing. For example, they learn to convert fractions to decimals and percentages to fractions. The reading skills they learn include locating information on charts, tables and graphs. The writing skills include accurate keyboarding and being able to summarize precisely.

One employer who participates says that he is pleased that WAGE programs can be adapted to his business's specific requirements. Another likes the fact that WAGE has helped all of his workforce improve their skills, regardless of their age.

Students can sign up at any time and leave when they have fulfilled all the requirements to get a certificate. It is free, not only for students but also for participating businesses. For more information you can visit the Web site of the Arkansas Department of Career Education, at this address: http://ace.arkansas.gov and click on menu bar that says Adult Education. The link to WAGE is in the left hand column.

The governor recently issued a proclamation designating Adult Education Week in Arkansas, with the goal of encouraging people to get a GED if they don't have a high school diploma. Arkansas is one of only a handful of states that does not charge students for getting a GED, but by the year 2014 all 50 states will have to start charging when a student takes his or her GED test. Therefore, anyone thinking about enrolling in a GED program should do so now, while it is free.

Horse Auction

Arkansas prisons, run by the Correction Department, operate extensive farm programs that include raising livestock. Working a farm keeps the inmates busy, and when prisoners produce their own food it holds down the costs to taxpayers of running a prison.

The Correction Department has announced its first horse auction. It will be November 19 at the Saline County Fairgrounds. The public can bid on about 60 "retired" horses, colts, mules and jacks. The department's working herd numbers about 450 head.

The animals may be viewed and ridden November 18 from 9 a.m. to 3 p.m. On November 19 they may be viewed from 8 a.m. to noon. The sale begins at 1 p.m. November 19.

Kirby Trojan Boosters & Mineral Springs Fire Dept.

2011-10-16T09:20:00.002-05:00

We had a beautiful fall day yesterday with cool dry air and a steady breeze. We are still in desperate need of rain here in southwest Arkansas but it looks as if there is none in the forecast for this week. I did ride the bicycle 25 miles - it was an almost perfect day to just be out and about.

Last night I had two events I attended. The Kirby Booster Club had an all day event going at the school to raise money for the Trojans. I was one of the sponsors of the t-shirt for the day. It seemed everyone had one on when I got there. I had some good smoked chicken and visited with a goodly number of people. Then I headed back south to make it to the Mineral Springs Fire Departments chili supper. Yes, I did have a bowl of chili - the chili I chose was pretty spicy and hot but really good.

I made it home by about 8 and read for a couple of hours before turning out the lights.

Week In Review

2011-10-13T13:45:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Arkansas is joining a growing list of states seeking a waiver from the testing requirements in federal education standards known as the "No Child Left Behind" law.

No Child Left Behind is the main law that sets out the federal government's role in public education. A version of the law has been on the books since the 1960s, but it was a major overhaul enacted by Congress 10 years ago that has caused headaches for local and state education officials.

Educators in many western states, such as Utah and Montana, have been the most outspoken in their criticism of No Child Left Behind. However, it's possible to find state and local officials in every region of the country who are critical of the federal law.

At issue are the law's requirements that all students must perform at proficient levels on standardized tests by 2014. That is a reasonable goal for the vast majority of students, but it is extremely difficult for the bottom five to 10 percent. It also is a difficult goal to meet for schools with non-English speakers, students from poor families and students with disabilities.

The requirements and penalties in the law are being phased in, and schools that have not met the goals so far are labeled as failing. According to a recent report, almost a third of the nation's schools are branded as failing. In some states the percentage is much higher.

A fundamental issue raised by No Child Left Behind is how great of a role Washington, D.C. should have in determining education policy in local schools. The law has spurred many local schools to do more to raise academic achievement of minority students in reading and math.

On the other hand, No Child Left Behind has raised concerns that schools are now pressured to concentrate too much on preparing students for standardized tests, at the expense of teaching subjects that are not tested.

Drug Court Stopgap Funding

The state Health Department has released $393,000 to pay for drug court operations temporarily. Legislative supporters of the drug court program will seek a stable and permanent source of funding during the Fiscal Session that begins in February of 2012.

Drug offenders can avoid prison if they agree to the intensive supervision and testing required by drug courts. By avoiding prison they can keep their jobs and continue supporting their families and paying taxes.

Land Commissioner Accepts Cards

The state Land Commissioner now accepts credit and debit card payments for delinquent property taxes, but only from those who personally visit the office. The office has plans to expand its plans to include payments by telephone and over the Internet. Information is available at the Land Commissioner's web site at www.cosl.org.

History buffs can find fascinating images of early land records, including Spanish land grants and deeds of property to veterans of the War of 1812, under the "History and Archives" link on the Land Commissioner's web site.

It also has a catalogue of parcels available at public auctions throughout the state. Besides the catalogue, the Land Commissioner publishes legal notices in local newspapers. The parcels of land are available because they were forfeited for non-payment of real estate taxes.

Week In Review

2011-10-06T14:00:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Legislators got a double dose of good news last week - enrollment is on the increase in Arkansas colleges and universities while the number of juveniles getting in trouble and being sent to lockups has gone down.

To top it off, state government revenue for September was up slightly from last year. Budget officials remain cautious, but an increase in revenue indicates economic growth and is welcome.

When juveniles get in trouble, unless they commit a serious offense and are charged as adults, they come under the jurisdiction of the state Division of Youth Services. Most of them receive counseling and supervision in a community program, but some offenders are committed to a secure detention facility.

Last year 480 juveniles were placed in a secure lockup, down from 631 commitments two years ago. Youth services officials attribute the decline to the fact that juvenile judges are sending more youths to the counseling and intervention programs, which are run by 13 organizations that contract with the state.

The decline is also due to the fact that fewer adolescents were brought into court for delinquency. The number of juvenile cases has fallen from 11,534 in 2008 to 9,773 last year.

Another positive development is attributable to the success of the community programs. The recidivism rate over a three year period, in other words the percentage of repeat offenders who get in trouble again after they are released from custody, has dropped significantly for Arkansas juveniles.

From 1997 through 2007 about three in four juveniles were arrested again within three years of their release. For the past three years the recidivism rate has declined to 27.8 percent, according to the director of the Youth Services Division.

College Enrollment

The Higher Education Department reported that enrollment in Arkansas colleges and universities is up 2.1 percent this school year, compared to 2010. The total number of students earning credits in an institution of higher education is 176,114.

Several campuses have seen a decline in enrollment and several others experienced only slight gains. One reason was that they had raised admission standards. Although higher admission standards results slows enrollment growth in the short term, in the long term it should improve retention rates. All Arkansas colleges and universities are trying to increase the number of graduates.

Arkansas is on a par with other southern states in terms of high school graduates going to college. However, too many Arkansas students never finish college. The four-year universities in Arkansas are improving their retention rates, according to the director of the Higher Education Department. They awarded 9,392 degrees in 2009, which was 10.5 percent more than the previous year.

State Revenue in September

In September the state collected $462.8 million in net available revenue. That is 5.5 percent more than was collected in September last year. For the first three months of the fiscal year, net revenue is up 2.7 percent over last year.

State budget officials project that the state will collect total net revenue of $4.57 billion in the current fiscal year.

Antoine Post Office and Centerpoint FFA Fundraiser

2011-10-05T09:01:00.002-05:00

Last night was a busy evening. I was in Little Rock all day -I did manage to work in time to hold Chloe for an hour or two. She loves her granddad.

The Antoine Post Office is now on the list of possible closures. There was a closure public meeting to give the residents an opportunity to express their opinion. It is probably the fourth or fifth such meeting I have attended in my district. I remain frustrated with the postal service and their methods.

Leaving there I rushed to the CenterPoint school for the FFA fundraiser. It is an annual event that is incredible well supported by the community. I know that I was able to buy a nice big cake for only $150 - which is cheap for that event. Troy Buck and his bunch run a great program and I am happy to help them out.

Week In Review

2011-09-29T17:18:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Arkansas two-year colleges have received a federal grant of $14.7 million to help students complete degree programs in fields in which they are more likely to find good jobs.

The grant will help pay for several changes at Arkansas colleges. The change that is most noticeable to students is that colleges will realign class schedules so students with jobs have more opportunities to attend classes at night and on weekends.

Another change that will help students is a re-working of requirements to complete remedial courses. This will particularly help older students whose education stopped after getting a high school diploma or a GED.

When they sign up for college, they must score a 19 or better on standardized tests in reading, math and English and if they don't, they must take remedial classes to get up to the college level. The majority of first-time students who enroll in a two-year college must take at least one remedial class.

The federal grant will pay for a redesign of course work in remedial classes to better fit the needs of students. If tests show that a student needs help in a specific area, that student will be tutored in the particular area and not have to take an entire remedial course. The student will be able to fulfill their remedial requirements in a couple of days rather than in an entire semester.

The grant will help colleges make changes in curriculum and degree programs so that course work more closely fits the needs of nearby industries.

With input from local businesses, colleges will create career pathways. Students who take courses in career pathways are more likely to be qualified for jobs in local industries.

Nationwide, college attendance is tending to increase because of the poor economy. People who are laid off go back to college to learn new job skills. More and more high school graduates realize the benefits of a college degree in getting a good job.

The increase in attendance has meant an increase in the number of students who are not prepared for college course work. Their lack of academic preparation hinders them from getting into growth areas like health care and information technology.

The federal grant, from the U.S. Department of Labor, is one of a series of national grants to help colleges meet the needs of students. In all, the department awarded $500 million in career training grants to colleges across the country.

There are 22 two-year colleges in Arkansas with 60 locations. More than 61,000 students are enrolled in classes for credit and another 50,000 people are taking classes through a local business in order to upgrade their job skills.

Almost half of the college students in Arkansas are the first person in their family to attend college. Almost half are 25 or older and 43 percent attend college on a part time basis.

Students earn associate degrees and technical certificates. The most popular degrees are in nursing and health professions, but colleges offer hundreds of degree options in computer science, manufacturing , aerospace and energy technology, mechanics, law enforcement, education and electronics.

On average, the cost to attend a two-year college in Arkansas is $2,654 a year, or $1,327 per semester. That amount represents tuition and mandatory fees.

Certain core courses earned at two-year colleges can be transferred for credit at four-year universities.

Five Generations

2011-09-22T15:55:00.002-05:00

My grandmother, mother, Larry Jr, the baby and me. Five generations of family. I am blessed that my grandmother is still with us and the kids are blessed to have their grandmother and now a great and a great-great grandmother.

Week In Review

2011-09-22T15:29:00.000-05:00

State Capitol Week in Review

LITTLE ROCK –Legislative leaders have asked for an audit of questionable unemployment checks being sent from the state Workforce Services Department.

According to a federal report issued by the U.S. Labor Department, the state agency has mistakenly paid out more than $161 million in unemployment insurance since July of 2008.

The problem of overpayments took center stage at the most recent meeting of the Arkansas Legislative Council, when state lawmakers called for tighter controls within the Workforce Services Department to ensure that the problem gets fixed as soon as possible. Some lawmakers said they would introduce legislation to increase penalties for fraudulently filing an unemployment claim.

About 40,000 Arkansans are now receiving unemployment benefits. The federal report was based on a sample of fewer than a thousand cases in each of the past three years, randomly selected out of all claims paid in Arkansas. A spokesman for the U.S. Labor Department defended the validity of the report, saying its quality control methods had been proven over time.

However, the state Workforces Services Department disputed the numbers and said that last year the amount overpaid was $11 million, much less than the $50 million in overpayments reported by the federal agency for last year.

Whatever the amount in overpayments, legislative leaders called the federal report "disturbing" in a letter requesting a detailed audit of unemployment benefits paid in Arkansas.

It is especially frustrating for legislators because they passed difficult bills during the past two sessions to restore the financial health of the state Unemployment Insurance Trust Fund.

Act 861 of 2011 froze benefits for unemployed workers and Act 802 of 2009 raised the basic wage on which employers pay unemployment taxes, from $10,000 to $12,000. Those measures have reduced the deficit of the state Unemployment Trust Fund and will restore it to a positive balance by 2015, according to recent estimates.

The news about overpayments is also particularly frustrating to the business community, which pays taxes to maintain the Unemployment Trust Fund.

The federal Labor Department lists reasons for the improper unemployment payments. The largest category of improper payments, 63 percent, were to people who had found work again but continued to claim unemployment benefits.

The second most common reason for improper payments was "separation issues," which means that new information came to light that would have disqualified the recipient had it been reported in a timely manner. The fault could be on the part of the employer or the employee, or the information may not have become available until a ruling is made on appeal.

Separation issues were the cause for 17 percent of the improper payments, according to the Labor Department report.

Being unable or unavailable to work accounted for seven percent of improper payments. That happens when the recipient turns out to be disqualified from receiving benefits because they were in the hospital or in prison, for example. Another three percent of improper payments were made to recipients who failed to look for work, as required in order to be eligible for benefits.

The improper payments represent 9.88 percent of all unemployment amounts paid in Arkansas in the three year period from July 2007 through June 2010.

In August the unemployment rate in Arkansas was 8.3 percent in August.

Week In Review

2011-09-22T15:28:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – University officials reported to a legislative committee that it's a common practice for institutions of higher education in Arkansas to award long-term contracts to vendors without seeking competitive bids.

It's also common for the vendors to provide gifts to colleges and universities, such as renovations to existing buildings or donations to scholarship funds. One university president described renewing of contracts in exchange for gifts as a business arrangement in which both parties expect a benefit. Another president said that changing food vendors frequently was disruptive and expensive.

Some legislators were not convinced that the system is a good way to budget and account for the expenditure of public money at state-supported colleges and universities. If the amounts of the gifts and significant details are clearly presented in contracts, university officials can make informed judgments when comparing various offers from vendors in order to get the best deal.

Another university president, after questioning by a senator, admitted that when a food vendor awarded gifts to a university in exchange for contract renewal, the cost of the gift would be included in the price of meals in the dining hall.

The contracts are routinely for as long as seven years and can be for millions of dollars. They give private companies exclusive rights to operate book stores and dining halls, or they award "pouring rights" to one particular soft drink company to stock soda machines on campus.

Universities and colleges operate under different laws than those governing state agencies, which must seek competitive bids when they purchase goods and services in order to get the lowest price.

Higher education has a degree of constitutional autonomy that buffers universities from political interference by the legislature and the governor. However, the extent of their constitutional independence is not clear because litigation has never reached the state Supreme Court. There are legislators who believe higher education should be protected from political meddling but who at the same time believe university administrators should be more accountable to the public because they receive and spend tax dollars.

The issue has real consequences for students and Arkansas families because of the spiraling costs of a college degree. In the past five years the Consumer Price Index has gone up 11.6 percent while tuition and fees at Arkansas state colleges and universities has risen twice as fast and on some campuses three times as fast as inflation.

Higher education officials attribute the need for increased tuition and fees to the fact that state funding has not kept up with factors that drive up costs, such as growing enrollment, the need to add courses and degree programs, utility bills, new facilities and the acquisition of technology and equipment.

Highway Bond Election

On November 8 Arkansas voters will decide whether to authorize the Highway Commission to issue additional bonds that would be backed with revenue from four cents per gallon of the state motor fuels tax on diesel. According to the Highway Commission, the four cents generates a total of $23.8 million a year. Of that total the Highway Department gets $16.1 million, cities and counties each get $3.46 million and other state agencies $785,000.00.

10 Year Anniversary of 9/11

2011-09-12T08:45:00.002-05:00

Last night at the Nashville City Park Phil Brown and the local Ministerial Alliance hosted an event remembering 9/11. It turned out to be a really nice evening and drew a pretty good crowd. I had a small part in the program. I thought I would share my comments below.

Pearl Harbor - December 7^th, 1941, D Day – June 6^th 1944, September 11, 2001 all important dates that mean something to generations of Americans. Most of us remember where we were and what we were doing when we first learned that our nation had been attacked. In the last 10 years our nation has seen some hard times. When I watch the news on television all I hear is how bad it is, what an awful place it is. My friends I want to remind you this evening that though things are not as good as they should be - not as good as we expect and not as good as they have been - I want to remind you that we in these United States of America are so blessed by our God. I want to remind you that there is no better place to live in the entire world. We have freedom that others long for, we have freedom that our forefathers fought and died for, we have freedom. With that said I believe it is right and appropriate for us to want more, it is right and appropriate for us to expect more and it is right that we cannot continue to spend and spend and spend, we cannot continue to spend our children and grandchildren into more and more debt. It is right that we need to create jobs – jobs take care of so many of our problems. The last verse of the star spangled banner says:

O! thus be it ever, when freemen shall stand
Between their loved home and the war’s desolation.
Blest with vict’ry and peace, may the Heav’n rescued land
Praise the Power that hath made and preserved us a nation!
Then conquer we must, when our cause it is just,
And this be our motto: “In God is our trust;”
And the star-spangled banner in triumph shall wave
O’er the land of the free and the home of the brave!

Tonight and every night I hope that you will join me as I pray for our country and for our leaders. I hope that you will pray that God will give our leaders wisdom and courage and that our country might walk the path that is in accordance with God’s will. Let us repent our sins and pray that we continue to be as I just read in the Star Spangled Banner, a heaven rescued land and let us give credit to God – the power that has made and preserved us a nation. May God Bless you, God Bless Arkansas and may God Bless America.

Week In Review

2011-09-09T13:36:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Last year 481 juveniles were committed to state custody in a secure detention facility. That is down from the previous year, when 531 youths were committed to a detention facility and significantly lower than the year before, when 636 youths were committed. The youths who were committed to a juvenile lockup stayed fewer days before being released. In Fiscal Year 2011, which ended on June 30, the average stay for a juvenile sent to detention facilities averaged 132 days. In Fiscal Year 2010 the average stay was 171 days.

The Division of Youth Services operates facilities for serious juvenile offenders at Colt in St. Francis County, Harrisburg in Poinsett County, Mansfield in Sebastian County, Dermott in Chicot County, Lewisville in Lafayette County and Alexander in Saline County. The total population being housed in those facilities ranged from 711 in April to 764 in February.

The director of the Youth Services Division told legislators that a reason for the decline in commitments to secure detention facilities was that more youths were being sent to community programs. Arkansas has 13 non-profit organizations that work with at risk juveniles and delinquents. Some but not all of the programs are residential. They accept youths referred from the 28 judicial districts in Arkansas.

The director said that community organizations were able to accept more youths because of funding from the federal stimulus package and from state funds. They were able to hire an adequate number of staff to treat or monitor about 9,000 juveniles in community programs close to their homes, he said.

The juveniles committed to a detention facility are overwhelmingly male and from 15 to 17 years old.

Last year 16 percent of the youths committed were female and 53 percent were African-American. The offenses for which they were committed were felonies in 64 percent of the cases. If they were committed for misdemeanors it was likely because of repeat offenses.

Institute on Aging Receives Grant

The Institute on Aging at the state's medical school in Little Rock, the University of Arkansas for Medical Sciences, has received a grant of $5.5 million to improve standards of care of the elderly. UAMS will collaborate with its counterparts at the Department of Geriatrics and the Center on Aging at the University of Oklahoma Health Sciences Center, which is in Oklahoma City.

Among other things, the grant will be used for research into the reasons for declining muscle and skeletal functions in the elderly, and to determine how better nutrition can counteract those declines. Also, the research will explore innovative ways to prevent heart and skeletal muscle weakness.

The Institute on Aging was established with a $28.8 million gift from the Donald W. Reynolds Foundation. Another gift of $33.4 million in 2009 allowed the institute to expand.

Bids for Highway Projects Opened

The Arkansas Highway Commission opened bids for 19 projects totaling $120.7 million. They include work on about 10 miles of Interstate 40 near the White River that flooded earlier this year, forcing motorists to take detours of more than a hundred miles.

The projects also include building an 8.5 mile bypass around Monticello, which is significant because it represents the first construction project in Arkansas on what eventually will be Interstate 69 across the southeast corner of the state. The chairman of the Highway Commission called the contract a "monumental" development.

Week In Review

2011-09-02T16:57:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The governor has set November 8 as the date of a special election on whether to renew $575 million in bonds to repair about 300 miles of interstate highways.

Voters approved the original interstate bond program in 1999 by an overwhelming majority. Those bond issues have paid for repairs to about 350 miles of interstates. Arkansas has a total of about 650 miles of interstate. The last of those bonds are scheduled to be paid off in August of 2014.

The state Highway and Transportation Department has pledged its share of federal funding to pay off the bonds. Also, it uses revenue from a portion of the state's diesel tax - four cents a gallon - to pay off the bonds.

If voters approve on November 8, the Highway Commission will have authority to renew the bonds for additional repairs to Arkansas interstates. If the proposal is turned down by voters, the four cents per gallon in diesel taxes will still be collected and the state will continue to receive federal funding.

The four cents per gallon in diesel fuel taxes generates about $13.5 million a year in revenue for the state. It generates about $3 million for cities and $3 million for counties to spend on local road improvements.

The 1999 special election to authorize bonds for highway repairs was a milestone in the history of the Arkansas highway department, because it represented a departure from our traditional "pay as you go" method of paying for highway construction. The 1999 interstate program was the first time in 50 years Arkansas had paid for highway repairs with bonds.

The governor said that he set the election for this year, rather than next year, because the 2012 elections will include so many races for elected office and several separate ballot issues. He said he wanted the highway bonds to be the only issue for voters to focus on. When several issues appear on the same ballot, as often happens in general elections, it is easier for voters to get confused.

Electronic Bids

The Highway Department is now set up to accept bids electronically. Its bidding service is called "Bid Express" and it allows contractors to access information about projects and submit bids over the Internet. The Department uses encryption technology to provide the highest level of security possible, so bids remain confidential until they are opened.

Contractors appear to like the new electronic process. The first time it was available, a total of 31 bids were submitted and 17 were submitted electronically. Contractors no longer have to travel to Little Rock to submit a bid.

GED Testing Fees

An international corporation called PearsonVUE administers testing for numerous state agencies. It grades GED tests for the state Career Education Department. Beginning in 2014 Pearson VUE will require that all tests in Arkansas be submitted on computer and graded on computer, resulting in costs of about $100 per test.

Arkansas residents take from 8,000 to 9,000 GED tests a year. We are one of only a handful of states that does not charge students to take a test for a GED. The Career Education Department is working on new rules that would allow for charges for taking the tests, as well as for duplicate copies of GED diplomas. The department receives from 50 to 70 requests a day for a duplicate diploma.

Saturday Morning

2011-08-27T10:08:00.001-05:00

I got up early this morning and rode the bicycle 30 miles before the temperature warms. It was a good morning for a ride, cool and not as humid. After that I stopped by mom's for a bowl of Cheerios.

I had a couple of missed calls while I was on the bicycle - it was Chloe (new granddaughter) calling and asking where her granddad was. Since she needs me I am about to head that way. I am sure she will be happier when I am holding her. This is a picture her grandmother sent me this morning.

I plan to attend a fundraiser for a sick person in Kirby this evening. That is one of the great things about living in southwest Arkansas (really all of Arkansas) - people care about their neighbors and will help them if they can.

Chloe is calling again - I have to go.

Week In Review

2011-08-26T09:39:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Funding of the 41 drug courts in Arkansas will be near the top of the agenda when the legislature convenes in fiscal session next February.

Judges and staff who operate drug courts are seeking a permanent place in the state's budget, as opposed to the current system under which legislators must find funding from available sources every budget cycle. Legislative supporters of drug courts have been able to find money from a settlement of a lawsuit against tobacco companies.

The state Department of Community Correction is allocated funds for drug courts but without strict instructions as to how much it must spend on the courts. The result has been that the department has had to divert it to other needs, such as supervising inmates on parole. Drug court personnel say that of the $1.5 million the legislature approved for drug courts, only $500,000 will actually be funded.

Supporters of drug courts in the legislature and in the judicial system want the governor to release funds from a discretionary account, because funding for drug treatment will run out perhaps as soon as October. To eliminate the uncertainty and instability that creates annual scrambles for available money, supporters of drug courts also want a permanent funding source in the state budget.

Defendants facing certain drug charges can go through drug court, where they undergo intensive treatment and supervision. They must undergo drug testing and the penalty for failure is severe, but if they successfully complete the program the charges against them are dropped. Placing defendants in drug court costs much less than housing them in a prison.

On average the treatment program lasts 18 months, which is usually less than a prison sentence. Drug court participants perform public service projects, but they don't have to quit their jobs. That means they continue to pay taxes and support their families, which helps hold down costs to the welfare system.

There are more than 16,000 inmates in the state prison system. As of July more than 2,000 people had gone through Arkansas drug courts.

When someone is arrested on drug charges a thorough evaluation is necessary before admitting him or her into a drug court program. Some defendants have lied about being addicted to drugs in order to avoid prison.

The nation's first drug court started in Miami, Florida, in 1988 as a response to a huge backlog in the criminal courts due to drug offenses. The first drug court in Arkansas was a pilot project in Pulaski County that began in 1994 with funding from the state Health Department and the federal Department of Justice.

AA Bond Rating

The Arkansas Development Finance Authority, the main state agency that issues bonds for public housing projects, has a AA rating from Standard and Poor's. That rating was raised earlier this year from AA-.

When the Authority received its first rating from Standard and Poor's in the late 1990s, it received an A and since then has been upgraded three times.

ADFA also issues bonds for economic development projects but Standard and Poor's based its rating mainly on the Authority's bonds for housing.

Chloe - my grandbaby

2011-08-25T14:54:00.002-05:00

Larry & Tana are the proud parents of Chloe and Debbie and I are the proud grandparents. I can tell that she loves me most. She was 8 lbs and 11 ounces and 19 1/2 inches. She is so sweet and so pretty and I love her.

Week In Review

2011-08-19T13:07:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – With the beginning of the 2011-2012 school year, Arkansas has begun the transition toward teaching national mathematics and English curricula known as Common Core State Standards.

The first step toward bringing Arkansas schools in line with Common Core is to introduce the national standards in kindergarten through second grade classes, beginning this school year. Next year the curriculum standards will be brought into classes from third to eighth grades. Ninth through twelfth grade classes will work under the Common Core standards beginning in the 2013-2014 school year.

So far schools in 42 states and Washington, D.C. have instituted Common Core. The impetus for Common Core came from governors and educators in individual states who want to ensure that the progress of a child's education will not suffer if his or her family moves to other states. Children who attend schools that teach the Common Core curriculum will be prepared for college and for entering the work force, the Arkansas Education Commissioner said.

The state Board of Education adopted Common Core standards for Arkansas public schools in July, 2010.

Also last week, a program to promote more emphasis on science and technology in Arkansas high schools was announced by the governor and the heads of state agencies in charge of education, job training and economic development. The pilot program is called STEM Works.

STEM is a acronym that has become popular in education circles. It stands for science, technology, engineering and mathematics. There is a growing demand for workers with job skills in STEM related fields due to the changing nature of manufacturing and industry.

The STEM Works program will change how certain high schools teach technology classes to allow students to participate more directly in projects. Cross County High School in Cherry Valley and Lincoln High School in Washington County will be the first schools in Arkansas to follow this new model and become what will be called "New Tech High Schools." The goal is to have 10 "New Tech High Schools" by next year.

STEM Works will also provide resources to state universities so they can graduate more new teachers in scientific and technical subjects.

Another model that STEM Works will promote is based on the successes of the EAST Initiative in numerous Arkansas high schools. That stands for Environmental and Spatial Technology.

Various state agencies have allocated $2.25 million for the STEM Works program and private industries have donated significant amounts.

Duck Season Is Set

The Game and Fish Commission has approved a 60-day season for waterfowl on these dates: November 19-27, December 8-23 and December 26-January 29. The youth hunt is set for February 4-5.

The duck bag limit of six will consist of no more than four mallards (two hens); three wood ducks; two redheads; one black duck; two pintails; one canvasback; one mottled duck, and two scaup. The different seasons for goose can be found at the Commission's web site at www.agfc.com

Polk Cattlemen's & Fed Oversight Stimulus Money

2011-08-17T10:57:00.002-05:00

My friend Harold Jones called to remind me of the Polk County Cattlemen's meeting last night at the Polk County Fairgrounds. I drove up to enjoy a good meal and to shake a few hands and visit with some friends. The real purpose of the meeting was to have a pie sale to raise money for their scholarship. The first item auctioned was a blackberry cobbler which sold at a bargain price so I was happy to take ownership of it. Rather than take it home I was happy to leave it to be shared for the evening's dessert. I made it back to Nashville a little before 10. Originally I had planned to drive from Mena to Little Rock but things did not all work out and it is pretty difficult to get from Mena to Little Rock.

This morning I left Nashville early. My Co-Chair Linda Tyler and I had a meeting of the Special Oversight Subcommittee on Federal Stimulus Money to the Legislative Council - what a mouthful. We did receive reports form Doris Smith who is the Intergovernmental Affairs Director in the Department of Finance and Administration and had some discussions on different areas of spending. Arkansas received over three billion dollars of stimulus money in total. The website that tracks and reports on those dollars is www.recovery.arkansas.gov.

Press Release on New Senate District

2011-08-16T11:19:00.001-05:00

After the census all legislative districts had to be adjusted. The Board of Apportionment approved the new maps (Senate and House) on July 29th. Clike the link to go to the Board of Apportionment's website to see the maps.

August 15, 2011

New Legislative Boundaries Approved for Western Arkansas

Effective the 29^th of August the new state Senate and House districts will go into effect. The Board of Apportionment has approved the new boundaries for state Senate and House districts in Arkansas. Formerly Senate District 20, now Senate District 10, the district now represented by Senator Larry Teague of Nashville will change. Counties new to the district include all of Montgomery County and portions of Clark and Nevada. Senator Teague loses the western portion of Sevier County and gains the northeast portion of Polk County and still includes Pike and Howard Counties and a portion of Hempstead and Sevier counties. Based on the new census numbers Senator Teague’s district needed to grow by approximately 10,000.

Teague’s contact information is 870-845-5303 or P.O. Box 903, Nashville, AR 71852. His email address is Larry.Teague@senate.ar.gov

"I look forward to working with the people who have been added to my district and I am sorry to lose those in Sevier County," Teague said. "I have worked hard to develop relationships and I expect to make many new friends in the new portions. They share the same values and interests as the people I have been representing -- they believe in hard work, good schools and conservative budgeting, so I think the transition to a new Senate district will be pretty smooth."

District 10 will pick up the northwest half of Clark County west of Interstate 30, including the southern shore of Lake DeGray. However, most of the city of Arkadelphia will be in Senate District 12. Teague's new district also will pick up the northwest corner of Nevada County, including areas on the northern and western edges of Prescott, everything west of Interstate 30.

Every 10 years after the U.S. Census, the Board of Apportionment draws new legislative boundaries to reflect shifts in population. After the new boundaries are finalized, each Arkansas state Senate district will have close to 83,300 residents. When the previous maps were drawn in 2001, each Senate district had about 76,000 residents.

The Board of Apportionment consists of the governor, the attorney general and the secretary of state.

Arkansas State Employees Association

2011-08-13T16:05:00.003-05:00

This morning I had the opportunity to visit with a group of state employees at the Arkansas State Employees Association's annual meeting. While I was there they were very gracious and awarded me their "Outstanding State Legislator of the Year" award. The picture above is Connie Hendrix from Polk County who is one of my constituents and who presented me with the award.

Thanks to all the association members. I very much appreciate it.

More Watermelon Festival

2011-08-12T20:26:00.003-05:00

The watermelon was so good last night I decided I had better go back over and have another slice this evening. Before I had watermelon for dessert I enjoyed the Hope Lion's Club fish fry. My friends in the Lion's Club are fish cooking machines and they do a good job. I also went to hear the Dixie Melody Boys in concert - I enjoy southern gospel. Turned out that they had an emergency and were replaced by the Crist Family from Knoxville, Tennessee. I enjoyed listening to them sing southern gospel. It was a hot evening. Not nearly as nice as last night.

Watermelon Festival 2011

2011-08-12T10:42:00.004-05:00

Yesterday was the first day of the 2011 Watermelon Festival at Hope. We had a nice shower here in Nashville which cooled things down. I headed over to the fairgrounds at Hope planning to watch the Dixie Melody Boys, a southern gospel group, perform. Turned out they were not singing until this evening. There was this glorious rainbow just before dusk. The colors were bright and you could see the entire arch. I will be back at the Festival tonight to enjoy the Lion's Club fish fry and then to listen to the Dixie Melody Boys.

The Watermelon Festival is great fun. It appears that temperatures are going to be more reasonable - why don't you come on by and enjoy food, entertainment and watermelon (I had a large slice of great melon last night). Here is a link to the website (HopeMelonFest.com) so that you can check out the events and the times. Hope to see you there.

Week In Review

2011-08-12T10:33:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Several members of the state Board of Education suggested newer and tougher standards for determining whether an Arkansas school district should be classified as being in academic distress.

At a recent Board meeting, members debated whether the current legal definition of academic stress is so diluted that it is meaningless. That would explain why some school districts never get placed on the academic distress list even though their students score very poorly on standardized tests.

It is more common for districts to be put in the fiscal distress category. When that happens, state education officials take over the administration of the local school districts until its finances are healthy again. If a school district in fiscal or academic distress cannot improve it may have to merge with a nearby district.

To be categorized as in academic distress, more than 75 percent of a district's students must score below basic on standardized tests. The results are considered district wide, therefore a district with a few high performing schools can also have a school where the majority of students score dismally on standardized tests. Such a district would not be placed in academic distress because the good scores compensate for the bad scores.

It was suggested at the Board of Education meeting that a graduated system of standards and corrective measures replace the current system, in which a school district must perform extremely poorly to be placed on the academic distress list. The state Education Commissioner said he could have some new standards ready for the Board to study at its December meeting.

The new criteria would provide early warning signs that a local school district is on the path toward academic distress, allowing the state to intervene more promptly.

Benchmark exams are standardized tests with four levels of achievement - advanced, proficient, basic and below basic. Students who score at the top two levels are considered to be performing at grade level.

Also during the August meeting the Board approved a Public School Fund budget for the coming school year of almost $2.6 billion. Per pupil funding will increase from $6,023 last year to $6,144 in the 2011-2012 school year. Per pupil foundation funding for next year, 2012-2013, is projected to increase to $6,267.

In addition to basic per pupil funding, school districts get bonus funding for students with special needs and bonus funding for students from poor families and for students who are learning English.

Grants Available for Rural Communities

The Arkansas Rural Services Department has opened a new grant cycle to accept applications for grants for county fairs, fire departments and community development. The deadline for this cycle is November 18.

The department is in the middle of other grant cycles, also for county fairs, fire departments and community improvements. The upcoming deadlines are August 19, December 9 and March 16, 2012.

Information and contact numbers can be found at the department's web site, at www.arkansas.gov/drs

The Rural Services Department provides grants to communities with fewer than 3,000 people.

Week In Review

2011-08-12T10:32:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The State Hospital has agreed to a far-reaching improvement plan that will keep federal funding of the facility intact for the next year.

The hospital is a psychiatric facility in Little Rock with 236 beds for people with mental illnesses so severe that they need to be placed in an institution. It is operated by the state Department of Human Services, which also operates 13 community mental health centers across the state for thousands of Arkansans who require psychiatric care.

Almost a third of the annual funding of the State Hospital comes from the federal government, which threatened to shut off the flow of revenue unless the facility made improvements in care. The agreement calls for the hospital to pay for third-party consultants to review policies and practices, including how prescription drugs are dispensed to patients and how staff are trained.

In a separate development, an investigation cleared the State Hospital of complaints that it had billed the federal government for services that were not medically necessary. The complaint was filed by an advocacy group that looks out for the interests of patients. A spokesman for the group said that some patients did not have the type of mental illness that made it necessary for them to be in the State Hospital.

Medicaid, a government health care program, was paying for their treatment. An investigator for a Medicaid unit dismissed the complaints. A finding against the hospital would have further jeopardized its federal funding.

The State Hospital's operating budget last fiscal year was about $45 million, of which $13 million came from federal funding. The state provided the rest.

Any potential loss of federal funding is a serious matter for the state Human Services Department. It is very hard to find and pay for treatment of the patients at the State Hospital because of the severity of their medical conditions.

Earlier this year, after federal monitors found problems in how patients were cared for, the state dismissed the Hospital's chief administrator.

Athletic Fees

In the coming school year eight state-supported universities in Arkansas will raise fees that students must pay to support athletic programs, according to a report by the state Higher Education Department.

Athletic fees range from $11.50 per credit hour at Henderson State University in Arkadelphia to $17 a credit hour at the University of Central Arkansas in Conway. The University of Arkansas at Fayetteville does not charge mandatory student fees for athletics. The Razorbacks receive millions in ticket sales, licensing of products and television contracts.

The Razorback athletic program, with a total budget of $69 million, is by far the largest in the state. Arkansas State University at Jonesboro ranks second with an athletic budget of $12 million.

UCA is third with a budget of almost $9 million for athletics and the University of Arkansas at Little Rock is fourth with an athletic budget of $6.7 million. The University of Arkansas at Pine Bluff follows right behind with annual spending on athletics of $6.2 million.

Arkansas Tech at Russellville spends almost $4 million a year on athletics, the University of Arkansas at Fort Smith and Henderson State each spend about $3.4 million, the University of Arkansas at Monticello $2.9 million and the University of Southern Arkansas at Magnolia $2.5 million.

Week In Review

2011-08-12T10:31:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Hundreds of new state laws approved earlier this year by the Arkansas legislature have now taken effect.

Under the state Constitution, bills without an emergency clause go into effect after 90 days have passed from the date the legislature adjourns sine die. This year sine die was on April 27 and the effective date for newly enacted laws was July 27.

The major new ethics law to come out of the 2011 session was Act 48, which prohibits legislators from becoming registered lobbyists until they have been out of office for a year. All 35 members of the Senate were co-sponsors.

Act 303, the Financial Transparency Act, has officially become law. It directs the state Finance and Administration Department to set up an Internet web site where all state government financial transactions can be viewed. The act requires the web site to be in operation by July 1 of next year.

Act 987 removes the limit on charter schools in Arkansas, which had been 24. When the number of charter schools gets to within two of the limit, the limit will increase by five. For example, if the state Board of Education approves 22 charter schools the maximum number allowed will go up to 29. There are 17 open enrollment charter schools in Arkansas now.

Act 570 puts in place numerous changes in sentencing of convicted criminals to make sure state prisons have enough room for violent offenders. The act also changes procedures for parole and probation.

Prison officials report that new procedures authorized by Act 570 have already had an effect. About 600 inmates have been granted parole under the law, lowering the prison population to about 15,500.

Act 811 prohibits smoking in a car in which children younger than 14 are riding. Previously, the prohibition was in cars in which children younger than six were present.

Some bills have an emergency clause that makes them effective immediately when they are signed by the governor. Appropriation bills that pay for state government operations take effect on July 1, the first day of the state fiscal year.

Other bills have specific dates when they take effect. For example, Act 304 authorizes the state Health Department to set up a prescription drug monitoring program to track any excessive dispensing of controlled substances. If the Health Department comes up with adequate funding, the drug monitoring program would become operational on March 1, 2013.

Some bills create new programs but don't take effect unless funding becomes available. For example, Act 197 requires city water systems serving more than 5,000 people to add fluoride. However, water systems are exempted from Act 197's requirements until they have sufficient money for start-up costs. Also, funding for start-up costs cannot come from taxes or fees, so water systems that want to fluoridate will have to get donations from private foundations.

Act 640 of 2011 sets training standards for dispatchers who take 911 calls for emergency responders. The Law Enforcement Training Academy in East Camden will conduct the training, which is optional for 911 call centers. Funding comes from fees paid by telephone customers. The state Board that oversees the program recently approved a $120,000 payment for training.

Week In Review

2011-07-21T14:16:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – Tourism's contribution to the Arkansas economy increased about 1.4 percent last year, from $5.38 billion to $5.45 billion.

The number of visitors to the state actually went down slightly, but their spending was up.

Industries that cater to travelers employed more than 58,000 Arkansans and paid $1 billion in salaries.

Based on surveys and information collected at welcome centers on the state's borders, Texas ranked highest as a state of origin for visitors. Missouri was second, followed by Oklahoma, Tennessee, Louisiana and Mississippi. Garland County was the top destination, followed by Pulaski, Carroll, Benton and Fulton Counties.

The state Parks and Tourism Department has identified these top urban markets for visitors to Arkansas: Dallas/Fort Worth, Memphis, Shreveport, Springfield and Tulsa.

For years the tourism department has bought television spots in those markets, both on broadcast networks and cable stations. Also, it places ads for Arkansas tourist destinations in magazines like Southern Living, Texas Monthly and AAA Southern Traveler.

Newspaper inserts that promote Arkansas tourism go into daily and weekly papers in Louisiana, Texas, Oklahoma and Memphis.

In the past few years the department consistently worked to improve its web site and has increased online advertising on mass sites such as Yahoo and Facebook. It also places online ads on "niche" sites such as Field & Stream, iExplore and Motorcycle.com

Last year Arkansas tourism officials developed websites for mobile phones. People with a "smart" phone can search for vacation packages, events, hotels, restaurants and attractions through a variety of mobile phone links.

The Arkansas tourism website added a "Google mashup" feature last year. For example, when an Internet user opens a Google map to look for a location in Arkansas that person can instantly search for all cabins within a 50-mile radius, with links to each for additional details.

For several years the Parks and Tourism Department has relied on social media such as Facebook and Twitter to guide Internet users to its website.

The department's media strategy targets adults aged 25-54 with a focus on women and families with children. A secondary target group is adults over the age of 50 with an emphasis on women.

The primary markets are neighboring states, especially urban areas. For example, in the fall an advertising campaign for Arkansas tourism "saturated" the major interstates and downtown areas of Dallas with billboards and outdoor advertising. Secondary markets include Illinois and Kansas.

Niche markets abound. We offer destinations of interest to naturalists and birdwatchers, Civil War buffs, antique collectors, motorcyclists, people interested in the civil rights movement, hunters, fishermen, outdoors enthusiasts, sports fans, people on church retreats, art aficionados and music lovers.

A 2 percent sales tax on tourist-related items pays for advertising campaigns that promote Arkansas as a tourist destination. Revenue from the tourism tax increased by 1.1 percent last year to about $11.5 million. For the first few months of 2011 revenue from the tourism tax is on pace to grow by more than 3 percent over 2010.

Week In Review

2011-07-15T08:31:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – Arkansas shoppers can enjoy the state's first sales tax holiday the weekend of August 6 and 7, when retail stores will not charge sales taxes on purchases of school supplies and articles of clothing costing less than $100.

Accessories under $50 also will be exempt from the sales tax. Shoes, boots and sandals will also be exempt if they cost less than $100.

The sales tax holiday is a result of Act 757, enacted earlier this year by the legislature. Although it was labeled a "back to school" tax holiday, it will benefit all consumers who buy clothes and accessories. No sales taxes at all will be collected, neither state nor local sales taxes. That means shoppers will pay what the sticker price indicates for clothing, accessories and school supplies.

Clothing that will be exempt from the sales tax includes footware, diapers, wedding apparel, gloves, aprons, hats, neckties and even rubber pants. Exempt accessories include jewelry, cosmetics, briefcases, watches, wigs, hair notions, umbrellas and non-prescription sunglasses.

Exempt school supplies include binders, paper, notebooks, markers, pencils, rulers and protractors. It is a long list of items that common sense dictates are needed for school. It also includes art supplies such as paintbrushes, paint, clay and drawing pads. Maps, globes and reference books are included in the items that will be exempt from sales taxes.

There is no limit on the number of items a consumer can buy and still benefit from the exemption.

For example, you can buy half a dozen shirts for $20 each and not pay sales tax on any of them even though the total is more than $100. However, if you buy a dress for $120 you will have to pay sales taxes on the entire amount of the purchase.

Calculators are considered school supplies and will be exempt, but computers and software are not. Sales tax will be collected on computers and periphery equipment.

There will be a "back to school" sales tax holiday every year in Arkansas. Act 757 says that it will be on the first weekend of August, which this year falls on Saturday, August 6, and Sunday, August 7.

Act 757 was one of a package of tax cuts measures enacted by the legislature in the 2011 regular session. Act 755 reduces the state sales tax on groceries by half a cent. Act 754 lowers the sales tax on utility bills of manufacturing plants.

Act 753 makes more used car purchases exempt from the sales tax by raising the exemption level. Previously, used car purchases were exempt from the sales tax if the car cost less than $2,500 and now they are exempt if the used car is sold for less than $4,000.

Lottery Scholarships

More than 30,000 Academic Challenge Scholarships have been awarded by the state Higher Education Department to students who will attend a four-year university or a two-year college in Arkansas this fall. Money for the scholarships comes from the state lottery.

More than 12,000 scholarships went to graduating high school students who will attend college for the first time this fall. More than 18,000 went to college students who received the scholarships and had them renewed because they maintained a 2.5 grade point average and completed 27 hours.

Week In Review

2011-07-07T13:10:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – Thanks mainly to very conservative budgeting, Arkansas state government ended its fiscal year on June 30 with a surplus of about $94 million.

State budget officials said the surplus was also evidence of a slow economic recovery. State revenue is a good indicator of the health of the Arkansas economy because taxes have not gone up. That means any increase in tax revenue is caused by an increase in economic activity rather than by higher tax rates.

In fact, in the regular legislative session earlier this year lawmakers reduced state taxes by about $35 million annually.

It was the state's first surplus in three years. Legislative leaders and the governor agreed that although the surplus is good news it is not cause to create any new spending programs. The governor suggested that the surplus be used to shore up the state's Medicaid program, which is expected to run a budget shortfall within the next two years.

The surplus is in the state's general revenue fund, the main source of discretionary spending by legislators. There are other sources of state revenue that go for dedicated purposes, such as motor fuels taxes that are spent on highway maintenance and construction. Another example is the money from a settlement with major cigarette manufacturers that pays for a variety of state health programs.

The main sources of the general revenue fund are state sales taxes, individual income taxes and corporate income taxes. Last fiscal year the net total in the state's general revenue fund was about $4.57 billion. That amount represents about $94 million more than the legislature authorized in spending.

Arkansas is one of 46 states where the fiscal year runs from July 1 to June 30. We have just begun Fiscal Year 2012.

Since last year state and local governments across the country have laid off about 350,000 government workers because of declining revenues. Many states are struggling to pay for increases in Medicaid costs, which are going up in part because people have lost their jobs and become eligible for Medicaid services and in part because the Baby Boomer generation is getting older and requiring more medical care.

Campaign Against Speeding

From July 10 through 16 the State Police will step up enforcement of traffic laws against speeding in a campaign labeled "Obey the Sign or Pay the Fine."

The director of the State Police said that speeding greatly reduces a driver's ability to steer safely around other vehicles and any dangerous obstacles in the road. It also lessens a driver's ability to negotiate an unexpected curve.

"Speeding translates to fatalities on Arkansas roadways," he said.

Speeding is a factor in about a third of all fatalities caused by traffic accidents. County and city law officers will participate in the anti-speeding effort.

Lottery Scholarships

About 70,000 college students have applied for an Academic Challenge Scholarship for the coming school year. The scholarships are funded with proceeds from the state lottery.

Last year 58,000 students applied and about 31,000 were awarded a lottery scholarship. The popularity of the new state lottery is believed to have increased awareness of the availability of Academic Challenge Scholarships. They will be worth $4,500 for freshmen at four-year universities and $2,225 for new students at two-year colleges.

Week In Review

2011-06-29T15:12:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – Most of the 35 members of the Arkansas Senate have experience running their own business.

Arkansas has a citizen legislature. That means lawmakers have full time jobs in their hometowns, if they are not retired, and they come to the state Capitol on a part time basis.

Five senators are active in farming or ranching. One is a pharmacist, one is a funeral director, one operates a pest control business, one is an accountant, one is a financial advisor,

one has an equipment rental business, one has a car dealership and two senators are in insurance.

Several senators have interests in real estate, either in developing land, managing real estate or as a broker.

Seven of the senators are attorneys, including one who is a retired judge and a former prosecutor. Seven other senators have experience in teaching, another has been a school

superintendent and another has a child care center. The senators who are retired or former teachers have worked in K-12 and in higher education. They worked in small, rural schools as

well as in the largest urban school districts in Arkansas.

One senator is a retired land surveyor. One senator owns a radio station. Another is an engineer for a railroad company. One senator recently retired after 44 years in the State Police,

where he had risen to the rank of captain.

One of the senators is an executive for a community foundation, which awards grants and offers financial services to local charities. Another senator's career has been in organizations

that serve people with developmental disabilities. One senator used to manage a surgical clinic.

Of the 35 senators, eight are women and four are African-American. Twenty are Democrats and 15 are Republicans.

The oldest member of the Senate is 74 and the youngest is 31.

In odd numbered years, during regular sessions of the legislature, they spend about three consecutive months working at the Capitol in Little Rock. In even-numbered years they spend

a month in Little Rock for fiscal sessions, which are mainly limited to appropriation bills that authorize spending by state agencies.

Regular sessions generally last from early January to late March or early April. There is no set schedule and the state Constitution only mandates that a regular session last for a minimum

of 60 days. The legislature may extend a regular session beyond 60 days.

Fiscal sessions begin in early February and last a minimum of 30 days. Under the Constitution they may not be extended to more than 45 days.

The rest of the year legislators only come to Little Rock occasionally for committee meetings. The frequency depends on which committees they serve on, for example, the Legislative

Joint Auditing Committee and the Legislative Council meet once a month. Other interims committees, such as Insurance and Commerce and Judiciary, don't meet as often.

In the interim between sessions the legislature cannot officially vote to enact a law or approve a budget. The value of interim meetings is that they allow lawmakers to stay current on

state government issues. In the fall before regular sessions the frequency of interim meetings picks up noticeably when the legislature schedules budget hearings.

A legislator, whether a senator or a member of the House of Representatives, receives a salary from the state of $15,869 a year. That amount is set in the state Constitution.

Week In Review

2011-06-23T14:07:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The state has taken over two major school districts that had been in fiscal distress - the Pulaski County Special School District and the Helena-West Helena School District.

In each case the state found continuing financial irregularities that justified the removal of the superintendents and the dissolving of local school boards.

It is the second time Helena-West Helena has been taken over by the state. The first time was in 2005. The state returned it to local control in 2008.

With about 17,500 students, the Pulaski County district is the state's third largest and the largest district that has been taken over by the state. It encompasses the outer parts of Pulaski County that are not in Little Rock or North Little Rock.

Arkansas law authorizes the state to take over a school district for reasons of academic or fiscal distress, and if a district consistently fails to meet academic or financial standards, it may be forced to merge with a nearby district.

Among the signs that signal that a school district is in fiscal distress are declining fund balances, having to pay late fees or penalties on tax deposits, failure to provide timely financial reports to auditors, defaulting on debt obligations and failure to comply with state laws that set minimum teacher salaries.

A factor in the state takeover of the Pulaski County district was a financial audit that showed "a lack of basic financial accountability," according to the state Education Commissioner.

The Helena-West Helena School district had a declining balance of funds and audits indicated a lack of financial controls.

The state appointed educators with years of experience to run each district. They will report directly to the commissioner.

Attorney General Sues Collection Agency

The state Attorney General's office has sued a collection agency named National Credit Adjustors of Hutchinson, Kansas, for failing to respond to an investigation about the agency's collection of payday loans.

Payday loans stores no longer do business in Arkansas because of a campaign by the attorney general to shut them down for violating constitutional limits on usury. The attorney general has also enforced laws against predatory lending to force 30 online payday lenders from operating in Arkansas.

The Kansas firm has been trying to collect old debts for companies that formerly operated payday lending operations in Arkansas. Collecting the debts is illegal because the original loans were illegal in the first place, the attorney general said.

Consumers who are being pressured to pay off an illegal payday loan may call the attorney general at 1-800-482-8982 or 501-682-2341 to reach the office's consumer hotline.

New Highway Director

Dan Flowers, who has been director of the state Highway and Transportation Department for 17 years, has announced his resignation. His final day on the job will be in mid-August. Flowers had worked at the department for 46 years.

He will be replaced by Scott Bennett, 45, the department's assistant chief engineer for planning. He began working full time for the Highway Department in 1989.

Week In Review

2011-06-17T16:38:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – State prisons have taken steps to free up space and relieve the backlog of inmates in county jails.

About 100 beds have become available at the Omega Technical Violator unit in Malvern because the Community Correction Department is accelerating the use of supervision, community service and drug testing. The unit is for inmates who have violated parole but not committed a new crime. For example, they may have failed to report to a parole officer or missed a court date.

Instead of returning to prison to serve out the remainder of their sentence they spend 90 days in the technical offender unit, where they get help with drug addiction and counseling on how to avoid a criminal lifestyle.

Act 570 of 2011, the major sentencing reform law passed by the legislature earlier this year, authorizes the alternate types of supervision that have freed up the 100 additional prison beds at the Omega Unit.

In related news, the Board of Correction has approved spending about $4.5 million on expansions to create space for an additional 164 inmates. Most of the money will be spent to add 100 beds to the North Central Unit at Calico Rock.

The remainder will be spent to upgrade an old facility in Little Rock that houses 64 inmates who work on the grounds of the state Capitol, the Governor's Mansion and the headquarters of the State Police. For the past couple of years those inmates were locked up in the Wrightsville Unit, which is near Little Rock in southern Pulaski County.

When more space becomes available in state prison units it relieves the backlog of prisoners still in county jails. When offenders are arrested they stay in a county jail until their trial, unless they post bail. If convicted and sentenced to a prison term they are transferred to a state prison unit. However, when state prisons are filled to capacity they wait in county jails until the state can take them.

This poses hardships for police officers because local jails sometimes house so many inmates awaiting transfer to a state prison that there is not enough room for jailing people arrested on relatively minor offenses.

Arkansas State prisons hold more than 16,000 inmates and as of last week about 1,200 were still in county jails awaiting transfer to a state prison unit.

Act 570 sets up a variety of alternative sentencing for non-violent offenders to make sure there is secure prison space for dangerous offenders and habitual criminals.

Cattle Testing

The Arkansas Livestock and Poultry Commission has adopted an emergency rule that requires all bulls to be tested for trichomoniasis when they change ownership. It's a disease that bulls transfer to cows. It causes infertility and the loss of calves and has been spreading into western Arkansas from western states.

The rule will be in effect for 120 days unless the commission votes to extend it. Infections have been reported in 20 herds in Arkansas. Bulls that test positive must go to slaughter within two weeks.

Neighboring states and western states have strengthened their testing procedures in order to eradicate trichomoniasis. The only laboratory in Arkansas that can certify test results is the one operated by the Livestock and Poultry Commission.

Week In Review

2011-06-10T13:29:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – For the second time this year a federal judge has dismissed a lawsuit challenging how the state of Arkansas treats people with developmental disabilities.

A legal challenge of policies at the Conway Human Development Center, filed by the U.S. Department of Justice, was dismissed last week. A related suit filed by the U.S. Justice Department was dismissed in January. The lawsuits challenged treatment methods at Arkansas Human Development Centers.

Both lawsuits alleged that Arkansas violated the rights of people with disabilities because it commits them to institutions when instead it should place them in community care. The lawsuits also contended that staff relied too much on physical restraints and strong drugs to control the behavior of residents.

The judge ruled that the allegations against the Conway HDC were not supported by evidence. Of about 500 residents in the Conway center, 39 are children.

The Arkansas Division of Developmental Disabilities Services operates five HDCs, at Conway, Arkadelphia, Booneville, Jonesboro and Warren. A facility at the Alexander recently closed. The centers treat about 1,000 people with multiple and severe disabilities. The centers employ more than 2,300 staff.

The Division also provides help for about 2,690 children every day in community programs. Also, more than 4,000 people with disabilities get help through home-based and community programs paid for by Medicaid and provided by the Division.

A spokesman for the U.S. Justice Department said that federal officials had not decided yet whether to appeal. Arkansas officials were pleased by the ruling but would not be surprised if the federal government pursued further legal challenges.

The governor has defended the placement of people within the HDCs, saying that long term facilities are one of several options that families can choose when they seek treatment of loved ones with disabilities. He called the judge's ruling "a victory for the residents, families and staff of the Conway Human Development Center."

The attorney general said that Arkansas officials were confident of being able to defend the quality of care in the HDCs. Arkansas chose to defend its policies in court, unlike several other states that accepted a settlement with the federal government rather than risk an adverse ruling.

Classes in Juvenile Detention Center

Legislators want more information about the academic classes offered to youths who spend time in juvenile detention facilities. Lawmakers want to make sure the young people are being taught at grade level and are making progress toward a high school diploma or a GED.

The Division of Youth Services operates eight centers that securely house young people who have gone through the juvenile justice system. Many of the youths need drug abuse treatment and psychiatric counseling. They also need to keep up with their studies so that when they leave the facility and return to high school they have a better chance of fitting in. Legislators are studying whether to put their classes under the supervision of local school districts, or under the state Education Department.

The Youth Services Division helped more than 9,300 adolescents last year.

Serving Tables at the Governor's Mansion

2011-05-03T16:19:00.002-05:00

Last night was the Arkansas Hunger Alliance's "Serving Up Solutions" at the Governor's Mansion. It is an event sponsored by the Hunger Alliance to raise money and awareness of the hunger problem here in Arkansas. Volunteer chef's do the cooking and legislators and Mrs. Beebe wait on tables. It is great fun for all of us. It is my third year to wait on tables and I always enjoy visiting and interacting with everyone. I will post some pictures in a day or two.

This morning I drove from Little Rock over to Mena to visit and share pizza with my friends in the State Employees Association local group. They have a good active group there and I always enjoy visiting with them.

Tonight I am off to Hope for a fundraiser fish fry. Hopefully I will make it home early.

Week In Review

2011-04-28T14:11:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The deadline to apply for Academic Challenge Scholarships for next school year is June 1.

The Department of Higher Education has a newly re-designed web page that focuses viewer attention on how to apply for college scholarships. Also, the Department has a new "app" that people with smart phones can use to apply for financial aid and to keep track of their application status.

An "app" is the shortened form of an "application." In this context it doesn't mean the application process for a scholarship, rather it refers to an application or use of communications technology. Apps show up on the screens of smart phones like shortcuts appear on computer screens, or desktops. A smart phone is a cell phone with Internet access.

To apply for Academic Challenge Scholarships or to download the Higher Education Department's new app, go to this Internet address: www.adhe.edu

Another date to keep in mind, in addition to the June 1 deadline for students to apply is June 15. That is when supporting materials such as transcripts must be submitted to the Higher Education Department.

On the Higher Education Department web page are a couple of places you can click that will open scholarship application forms. One is labeled Academic Challenge Scholarships. Another scholarship application form is labeled YOUniversal, Arkansas Financial Aid System. YOUniversal refers to the fact that filling out a single form submits an application to all 21 state-sponsored scholarship programs.

One scholarship program is for children of military personnel who were killed in the line of duty. Another is for students who are going back to college after taking time off. Another is for teachers, another is based solely on the student's financial needs. When you fill out the YOUniversal form you will learn which of the various scholarships you are eligible for.

The Academic Challenge Scholarship has become the most popular in Arkansas because it is funded by the lottery. Before the lottery was approved by voters, about 8,000 students a year got the scholarships. Last year 31,031 Arkansas students received Academic Challenge scholarships worth $123 million.

About 22,000 recipients attended four-year universities. They received scholarships of $5,000. Those who attended two-year colleges received $2,500. They will get the same amount next school year if they have maintained a grade point average of 2.5 on a scale of 4 and if they completed enough hours. There are other criteria too, which are listed on the Higher Education Department's web page.

Students who apply this year for the first time will not get as much because lottery sales have flattened. Scholarships for students at four-year universities will be $4,500 and at two-year colleges the amounts will be $2,250.

Estimates of future lottery ticket sales were a factor in lowering scholarship amounts next year. Higher education officials and legislators want students to receive the same amount each year they are in college. Lottery sales are not expected to remain at current levels because the initial popularity of the games will wear off.

Another factor was that more students than expected applied for and were eligible for scholarships. That was especially true of students at four-year universities.

Week In Review

2011-04-21T13:58:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – Next year the state will award public school districts about $157 million for construction of new facilities and certain renovations of existing facilities.

The Commission for Arkansas Public School Academic Facilities and Transportation approved funding for 219 projects last week. The Commission also approved almost $32 million in facilities projects for the year after next, which will be Fiscal Year 2012-2013.

Since the state began distributing aid to local schools to upgrade facilities 814 projects have been completed and 334 are still in progress, at a cost of about $412 million.

In 2005 the legislature enacted a massive program to pay for improvements to academic facilities. It was part of a larger effort to comply with constitutional mandates to provide an adequate education to all Arkansas children, and to comply with Supreme Court rulings in the Lake View school funding case.

The Commission disapproved 83 applications for state funding. Some projects did not fall under the "warm, dry and safe" criteria for renovations. Some applications were incomplete. A list of approved and disapproved projects, as well as other information about the school facilities program, can be found at this Internet address: http://arkansasfacilities.arkansas.gov/

In the 2011 session the legislature passed Act 1006 to make several changes to the existing laws governing facilities funding.

They mostly clarify the application process, but one noticeable change will be on school buses. Warnings on buses will be shortened to read: "Stop When Red Lights Are Flashing."

The lettering of the new warning will be larger and more visible because the message is shorter than what is on buses now. Warnings on buses now say it is a violation of the law to pass buses when they are loading or unloading children.

Tobacco Settlement Payment

The attorney general announced that Arkansas has received another annual payment from the settlement of a lawsuit against major tobacco companies. The amount was $49.5 million, bringing the total amount Arkansas has received under the settlement to $621.4 million.

Arkansas is one of 46 states that joined a lawsuit against cigarette companies that targeted young people in their advertising and that withheld information from regulators about the addictive nature of nicotine.

Other states have used the revenue from the tobacco settlement to supplement their general revenue fund or pay for highway or prison construction. Thanks to an initiated act passed by voters in a statewide election in 2000, Arkansas uses its share of the revenue for health-related programs. They include the Arkansas Biosciences Institute, an expansion of Medicaid services, anti-smoking programs and research projects designed to improve the health of minority populations.

The settlement was supposed to generate $62 million a year for 25 years. This year's total of $49.5 million indicates that people are smoking less, or are buying generic brands that were not parties in the original lawsuit against tobacco companies.

88th General Assembly Legislative Summary

2011-04-14T13:44:00.001-05:00

Highways

Act 773 is the Speaker's bill to refer to voters an increase in diesel fuel taxes by five cents a gallon. If voters approve, revenue would pay off $1.1 billion in bonds for a highway improvement program. The tax would not be levied unless voters approved the bond issue in a statewide election.

A connected piece of the highway program is HJR 1, a proposed constitutional amendment by Rep. Barnett to raise the state sales tax by half a cent for a 10-year bond program to build four-lanes throughout the state. The bonds would generate an estimated $1.8 billion.

Another piece of the highway program is in HB 2188 by Rep. Cowling and Sen. Teague to exempt from sales and use taxes the purchase of Class 6 and Class 7 trucks and semi-trailers. Passage of this bill was necessary to win the support of the trucking industry for the five-cent per gallon increase in diesel fuel.

It has been sent to the governor.

Prisons

Act 570 by Sen. Luker is a 167-page bill to change sentencing laws. To make sure prison space is available for violent offenders, the bill would increase the use of parole and probation for non-violent offenders.

Drug crimes and theft would be treated more leniently than violent crimes or drug crimes by manufacturers and dealers.

Act 184 by Rep. Tyler and Sen. Burnett authorizes the state Correction Department to transfer inmates to other jurisdictions. Arkansas is negotiating with Louisiana, which unlike Arkansas has available prison space.

Louisiana would charge us $28 a day per inmate, half of what it costs us to house them here. However, Louisiana would offer no drug abuse programs, vo-tech training or adult education, which is what drives up the cost.

Arkansas has more than 16,000 inmates.

Tax cuts

The package of $35 million in annual tax cuts has been approved and sent to the governor (except for one bill that is being amended to add sponsors).

* Act 755 by Sen. Teague to lower the sales tax on food by half a cent - $20 million fiscal impact.

Act 753 by Sen. Baker to raise the sales tax exemption on used cars, from $2,500 to $4,000 -- $2.5 million.

Act 754 by Sen. Sample to lower sales taxes on manufacturers' utility bills from 3.125 to 2.625 percent -- revenue impact of $5.27 million.

Act 736 by Rep. Lindsey would remove about 50,000 low-income parents from the state income tax rolls if they have two or more dependents. Revenue impact is $3.7 million.

Act 738 by Rep. Patterson to extend and expand tax credits for geotourism projects in the Delta.

Act 757 by Rep. Shepherd to make the first weekend in August a "back to school" sales tax holiday on clothing items valued up to $100 and accessories of up to $50, as well as school supplies.

Redistricting

The big question was whether the legislature will put Fayetteville in the Fourth District, which is mostly south Arkansas. That plan failed, and after more than a week of negotiations the Senate passed SB 792 by Sen. Madison to wrap up the session.

Fluoridation

Act 197 by Sen. Johnson would require cities with more than 5,000 residents to fluoridate their water. It would exempt Texarkana because it buys water from Texas. The major cities it would affect are Fort Smith and Hot Springs. In all, 32 water systems will add fluoridation. The percentage of Arkansans with access to fluoridated water will increase from 64.5 percent to 80 percent.

Delta Dental Foundation will pay the $500,000 in start-up costs.

Higher Education

Act 1203 by Sen. Baker would change how colleges and universities are allocated state dollars. The new formula would take into account graduation rates and course completion rates.

The new formula would determine 5 percent of their funding in 2013-2014, and it would up 5 percent a year until 25 percent of institutions' funding relied on graduation rates, or "outcomes."

It has been sent to the governor.

Ethics

Act 48 by Sen. Bookout and the entire Senate prohibits retiring legislators from becoming a registered lobbyist until a year after they leave office. It affects any legislator running for re-election next year, therefore it does not apply to 11 outgoing senators and 24 House members who are term limited after their current terms.

The act also limits travel reimbursements for legislators to the cheapest mode of travel. They can still drive to out-of-town conferences, but if it is cheaper to fly then mileage reimbursements will be no more than the price of the airline ticket.

Constitutional Amendments

* HJR 1001 by Rep. Barnett would levy a half cent increase in sales taxes to finance bonds for a $1.8 billion highway program.

* SJR 5 by Senator Files to allow cities and counties to create districts within their city limits or county borders, which could issue bonds for retail projects and other economic development projects. The bonds would be paid off with local sales taxes.

Drug Abuse

Act 587 by Sen. Johnson authorizes the Board of Health to prohibit synthetic drugs. This codifies the Board's ban on synthetic marijuana and also gives it flexibility to prohibit other new drugs that hit the market.

Act 751 by Sen. Malone regulates the sale of "bath salts" that are being abused like meth because of their ingredients. People are snorting and ingesting the salts and it can make them crazy and prone to suicide. They will be a Schedule I controlled substance under the bill.

Act 588 by Sen. Malone further restricts sales of cold medicines like Sudafed that contain ingredients needed to cook meth. The bill limits a consumer from buying more than three packages in one transaction.

The cold medication can only be sold at licensed pharmacies, and not at convenience stores or groceries. It gives pharmacists discretion to refuse to sell medications to a customer, if the pharmacist believes there is not a valid medical reason for the customer to have it.

Drug Abuse (cont.)

Act 270 by Sen. Key requires physicians and clinics to report to law enforcement when they treat suspicious burns, that appear to be cause by cooking methamphetamine. In the same way ER doctors now report gun shot wounds and knife wounds.

Sentencing Reform

Act 570 by Sen. Luker, to increase the use of parole and probation in order to keep more non-violent offenders out of prison, has been signed by the governor and is now Act 570.

It also increases the number of drug courts.

The Department of Community Correction has 362 probation and parole officer. Act 570 will add 49 and reduce the average caseload from 110 to 85.

There are 41 drug courts and the act will add six.

The additional cost will be $ 9 million, to be paid for from increased charges levied from parolees and probationers, and from the Correction Department budget and the Community Correction Department budget.

More than 16,000 inmates are in the Arkansas system. We spend more than $400 million a year on Corrections.

The act is expected to slow growth from the previously anticipated 21,000 inmates by 2020 to about 18,500.

Lottery Scholarships

Act 1212 by Rep. Perry reduces lottery scholarships by 10 percent, from $5,000 to $4,500 for students at four-years universities and from $2,500 to $2,250 for students at two-year colleges.

The reduced scholarships reflect concern that proceeds from lottery ticket sales will taper off and not be enough for all eligible students at the current amounts.

Lottery Vending Machines

SB 867 by Sen. Madison prohibits the sale of lottery tickets in vending machines. It was passed by the Senate but failed in the House Rules Committee, as did another bill to allocate more funding for prevention of compulsive gambling.

Autism Coverage

Act 196 by Rep. Lindsey requires health insurance companies to offer up $50,000 in therapy for children diagnosed with autistic disorders.

Coverage would be limited to children under 18. The requirement would add an estimated $30 a year to a plan for a family of four.

Unemployment Insurance

Act 1125 by Sen. Hutchinson authorizes a bond issue for the state to repay a loan of about $330 million we've borrowed from the federal government for unemployment benefits.

The act authorizes ADFA to issue up to $500 million in bonds, but only if voters approve in a statewide election.

Act 861 by Sen. Dismang sets minimum ($81) and maximum ($451) weekly unemployment benefits.

Financial Transparency Act

Also known as the "Online Checkbook Act," Act 303 by Senator Dismang creates a new Internet web page where all state government financial transactions can be accessed.

State agencies will post the salaries of all employees, as well as expenditure data that includes amounts paid under contracts with private companies that bid on state projects. The data includes the names of vendors that are awarded contracts, the amounts of the contracts and whether they are for commodities or professional services.

The act applies to the offices of the governor, attorney general, secretary of state, land commissioner, auditor, treasurer and lieutenant governor. It also would apply to all boards and commissions, judicial offices, the Lottery Commission and legislative offices.

State agencies shall make available on the Internet information about their bonded indebtedness, such as the original amount of principal borrowed, the interest rates charged and the source of revenue for repayment of the debt. They must cite the statute authorizing them to borrow money.

The expenditure data is scheduled to be online by July 1, 2012. The state Department of Finance and Administration will create and regularly update the website.

Higher education is exempted from the act because colleges and universities use a separate accounting system and it would cost millions of dollars to include them.

Charter Schools

Act 987 by Sen. Baker removes the current cap of 24 charter schools. When the number of charter schools gets up to 22, the cap will go up by five.

There are currently 16 open enrollment charter schools in Arkansas, the majority in Pulaski County.

School Funding and Transportation

Act 1039 by Rep. Ingram, is the adequacy bill. It increases school funding by 2 percent. In a compromise with senators who wished to help rural schools with long bus routes, the governor agreed to put $500,000 in an account which schools can apply for if they have high transportation costs.

Health Care Reform

HB 2138 by Rep. Allen was sent to interim committee, as part of a compromise to get the state Insurance Department budget approved. HB 2138 would have set up state health insurance exchanges to implement provisions in the national health care law that will require people to obtain health insurance. The exchanges will offer insurance to people without coverage through their employer.

The national law requires that everyone be covered by 2014. The health insurance exchange also will offer policies to small businesses.

This was one of the most contentious bills of the session because of vocal opposition to national health care.

Internet Sales Tax

Act 1001 by Sen. Files and others puts the responsibility on Internet retailers to collect sales and use taxes on items bought online, such as through Amazon or L.L. Bean.

The revenue impact is negligible, mainly because of a lack of data on which to base an estimate. In the past, when Arkansas was working to conform its tax collection procedures with other states so we could join the "streamline sales tax" compact, estimates of new revenue were in the tens of millions.

It has been sent to the governor.

Week In Review

2011-04-14T13:28:00.000-05:00

State Capitol Week in Review

LITTLE ROCK – The 2011 regular session of the legislature finished its business on April 13. That was 94 calendar days after it began.

Technically the legislature is in recess until April 27, when lawmakers will return to the Capitol to adjourn sine die. Then the 2011 session will be officially over and the legislature cannot reconvene unless the governor calls a special session.

If there is no special session the legislature will next convene in February of 2012 for a fiscal session. The agenda for the fiscal session will have mostly budget bills to fund the operations of state agencies. During last year's fiscal session the legislature considered only two bills that were not appropriations.

During the 2011 regular session the legislature enacted 1,241 new laws. The first bill to become law this year was for the expenses of the Arkansas Senate. The final bill enacted creates new boundaries for the four Congressional districts in Arkansas.

Several hundred of the new acts are appropriations that authorize spending by public schools, colleges, universities, state agencies, regulatory boards and commissions. There are various types of appropriations - some authorize a single expenditure for a capital project, some provide a one-time grant and some pay for ongoing expenses.

About 225 appropriations authorize spending for state agency expenses, such as salaries, utility bills and supplies.

The largest single account over which the legislature has full authority is the General Revenue Fund of almost $4.6 billion a year. It will pay for public education and state agency budgets for the fiscal year that begins July 1.

Public education from kindergarten through grade 12 will get an additional $56 million next year, bringing the total of state aid to local schools to about $1.94 billion.

State prisons, parole and probation, halfway houses, drug courts and work release will get an increase too. The Correction Department will get $6.4 million in additional funding. Its operating budget will be $297 million. The Department of Community Correction will get $4 million more and its budget will be $70 million.

The Correction departments will get state dollars for buildings, drug abuse treatment, training and education of inmates. In addition to tax revenue they generate income from prison farms and prison industries.

State funding of human services and higher education will be slightly higher, but any funding increases will be virtually flat after accounting for greater expenses that will be incurred next year.

State employees will not get a cost-of-living raise next year. Appropriating tax dollars, "the power of the purse strings," is the responsibility of the legislature under the Constitution. Legislative committees will meet on a regular basis in the interim until next year's fiscal session, and the specific duty of many of those committees is to monitor executive branch agencies to make sure that they spend tax dollars as directed by their appropriations.

Now that the session is over, these committees and subcommittees will continue to keep an eye on state government spending: Legislative Council, Joint Performance Review (JPR), Performance Evaluation and Expenditure Review (PEER), Legislative Audit, Rules and Regulations, Personnel and Review.

Week In Review

2011-04-07T15:25:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – The final bill of the 2011 session is the most politically difficult, and it also best illuminates how the American system of representational government works.

Proposals to redraw the boundaries of the four Congressional districts in Arkansas generated headlines, as various plans were bounced between the Senate and the House of Representatives.

A map was finally approved by the House, but when it was sent to Senate committee it failed. Then the Senate approved its version of a new map, but it was sent to a House committee and failed.

Each time a group of legislators unveiled a new idea, they ran into a wall of resistance. But after each stalemate, a new compromise would appear and raise hopes for a final agreement. After each round of stalemate and failed compromise, the opposing sides had moved a little closer together.

The legislature is required under the United States Constitution to redraw Congressional district boundaries every 10 years, after the U.S. Census. The reason is to preserve the principle of "one person, one vote."

Based on last year's Census data, each district in Arkansas should have almost 730,000 people. That means the boundaries of the First District in eastern and northern Arkansas must be expanded so it can gain about 44,000 people. The boundaries of the Fourth District in southern and western Arkansas also must expand, so it can add about 66,000 people.

The geographic boundaries of the Second District in central Arkansas have to shrink, so that it reduces its population by about 14,000 people.

The Third District of northwest Arkansas has had the highest rate of population growth in the past 10 years, therefore its boundaries have to shrink the most. The Third District must reduce its population by about 95,000 people.

The constitutional principle of "one person, one vote" preserves equality under the law. An individual who lives in a district with more than 800,000 voters will not be heard as forcefully as an individual who lives in a district with 650,000 people.

In like fashion, the influence of a local economic development corporation or an association of water users would be more diluted and thus weakened in a district with 800,000 people. A similar group of equal size in a district of 650,000 would be significantly more influential.

The four members of Congress that Arkansas sends to Washington, and whose home districts are going to change, don't get to vote on the matter. Drawing the new maps is the duty of 135 members of the state legislature - 35 in the Senate and 100 in the House. However, the four Congressmen from Arkansas are lobbying intensely behind the scenes trying to influence the outcome.

Arkansas is a diverse state in many ways. The battle over redistricting brings to the surface our divisions, not just between the two major political parties but along cultural, racial and economic lines. Some Arkansans make their living by raising row crops. Some raise livestock and some work in the timber industry. Some work in computers, others drive trucks. Drawing a new political map every 10 years makes us recognize our differences, but it also makes us realize how much we all have in common.

Week In Review

2011-04-02T10:06:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – The major accomplishments of the 2011 legislative session include a wide-ranging series of tax cuts, stronger ethics laws for lawmakers and a highway program that Arkansas voters will be able to vote on in a statewide election.

The legislature enacted new laws to provide alternative sentencing for non-violent offenders, which include an expansion of parole and probation. The General Assembly also restored the state's depleted unemployment insurance fund, and it passed legislation to stabilize the fund by freezing unemployment benefits.

The "Financial Transparency Act" passed this year will make state agency spending accessible to anyone with a computer and access to the Internet.

Legislators voted to increase public school funding by 2 percent. Rural schools will get relief from a special $500,000 fund the legislature created to enhance state aid to schools with high transportation costs.

Arkansas businesses will compete on a more level playing field with large Internet retailers, thanks to legislation that obligates out-of-state firms to remit sales and use taxes on purchases made online.

In addition, the legislature wrote general revenue budgets for state government that hold the line on spending by the Department of Human Services, most other state agencies and institutions of higher education. The conservative budget approved by lawmakers does not grant a cost of living raise to state employees next year.

Public schools will get an increase to make sure they are adequately funded, as required by the state Constitution.

Also, the Department of Correction and the Department of Community Punishment will get slight increases in order to handle the growing number of prison inmates and to implement expanded parole programs.

Economic development initiatives enacted this session include replenishing the governor's "Quick Action Closing Fund," which is spent on infrastructure and job training to recruit industry to Arkansas.

The General Assembly tightened restrictions on the sale of over the counter cold medications with ingredients used in the manufacture of methamphetamine. The state Board of Health was authorized to restrict or prohibit the sale of new products that artificially mimic the effects of marijuana and other illegal substances.

Paperwork was simplified in the ARKids First health care program for children from low-income families, which means that about 20,000 eligible children will not be dropped from the rolls each year because their parents have trouble filling out forms.

A bill to prohibit the sale of lottery tickets in vending machines was passed by the Senate, but it failed in the House Rules Committee. Supporters of the bill said that in spite of precautions it is too easy for children to buy lottery tickets from machines.

State funding of colleges and universities will now partially depend on graduation rates and course completion rates, under legislation approved this year. It is part of a concerted effort among higher education institutions to help students remain in school

In the final days of the session, lawmakers were working on bills to make school choice less restrictive, to draw new maps for the state's four Congressional districts and to implement health insurance exchanges as required under the new federal health care law.

Week In Review

2011-03-25T09:55:00.001-05:00

State Capitol Week in Review

LITTLE ROCK – As the legislature approaches the final hectic days of this year's regular session, the major issues still unresolved include the approval of state agency budgets, drawing new boundaries for the four Congressional districts in Arkansas and final passage of a highway improvement program.

There are two major components in the highway proposal, and both would have to be approved by voters in a statewide election. One component is a proposed constitutional amendment to raise the state sales tax by half a cent, with a guarantee that the increase would expire after 10 years. The other is an increase in the diesel fuel tax by five cents a gallon.

Revenue from both increases would pay off bonds, which the state would issue so that work on highway improvements could begin immediately.

Revenue from the half-cent sales tax, if voters approve the constitutional amendment, would pay for $1.8 billion bond issue for highway projects.

Revenue from the diesel tax increase would generate about $20 million a year for the state and $4 million each for cities and counties. The traditional division of highway funding is for the state to get 70 percent, cities 15 percent and counties 15 percent.

The Highway Commission would use the additional diesel tax revenue to issue and pay off $1.1 billion in bonds for improvements to interstates and routes in the national highway system, which are the roads most heavily used by trucks. The five-cent increase would expire when the bonds are paid off.

The half-cent sales tax increase for highways is one of two proposed constitutional amendments that the legislature will refer to voters. The other would authorize cities and counties to create development districts. They could issue bonds to pay for improvements such as ramps, roads, water lines and sewer lines to make them more attractive to large retail stores and other businesses. Growth in state sales tax revenue within the district would pay off the bonds.

The legislature must approve the committee recommendations, and if it does the two proposed amendments will be on the November, 2012, general election ballot.

Every 10 years, after the U.S. Census, the boundaries of Congressional districts are redrawn so that they are nearly equal in population. The legislature is drawing a new map so that each of the four districts in Arkansas has about 711,000 residents.

Some of the very last bills to work their way through committee were appropriations for the major state agencies, prisons, institutions of higher education and public schools from kindergarten through grade 12.

The governor's sentencing reform plan won final passage from each chamber and is now Act 570 of 2011. It increases the use of parole and probation in order to free up prison space for dangerous offenders.

Currently, the Department of Community Correction has 362 probation and parole officers. Act 570 will add 49 parole officers and reduce their average caseload from 110 to 85.

The act will create new drug courts, perhaps as many as six. There are now 41 adult drug courts, 10 juvenile drug courts and two DWI drug courts in Arkansas.

Week In Review

2011-03-03T16:00:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – The legislature is passing new laws to prevent new forms of drug abuse.
SB 423 prohibits the sale of a new synthetic drug that is marketed as bath salts. It is ingested or snorted by people who want to get high, and it often makes them erratic and suicidal.

SB 386 codifies a ruling last year by the state Board of Health to prohibit the sale of synthetic marijuana, which was sold in convenience and tobacco stores under names like K-2 and Mojo. SB 386 gives the Board flexibility to regulate or prohibit any new synthetic drugs that come on the market.

The Senate also passed SB 437 to further restrict sales of cold medicines that contain ingredients like ephedrine that are needed to manufacture methamphetamine.

It limits a consumer from buying more than three packages in one transaction and limits the amounts of pills in a package to 96. Under SB 437 cold medications with ephedrine can only be sold at licensed pharmacies by the pharmacist or a registered pharmacy technician.

It gives pharmacists discretion to refuse to sell medications to a customer, if the pharmacist believes there is not a valid medical reason for the customer to have it. It also requires the consumer to show a valid driver's license or identity card printed by the state Department of Finance and Administration, and the card must have a functioning magnetic strip or bar code. This provision is meant to prevent meth users from buying cold medication with a fake ID.

SB 345 sets up a prescription drug monitoring system, but only if funding becomes available. The intent is to allow law enforcement and public health officials access to information about the types and quantities of drugs being prescribed, to prevent the abuse of pain killers, sedatives and anti-depressants.

Of all the bills written to limit drug abuse, SB 345 generated the most controversy. Several senators expressed concern that it could allow invasions of personal privacy. The Senate passed it by a vote of 25-to-4.

SB 750, which changes sentencing laws for drug offenders, is a major piece of legislation, backed by the governor and a bipartisan group of legislative leadership from each chamber. It is an attempt to slow the consistently high rate of growth in the Arkansas inmate population, chiefly through alternative sentencing for non-violent offenders and increased use of parole and probation.

For methamphetamine offenses, SB 750 would impose lesser sentences for users than for manufacturers. It would expand drug courts. The 167-page bill has been referred to the Senate Judiciary Committee.

Also of interest last week, the House passed SB 359 to require water systems serving more than 5,000 people to add fluoride to the water. The bill now goes to the governor. A private foundation has pledged to pay for start-up costs.

Also, the Senate passed HB 1315 to require health insurance policies to include up to $50,000 in therapy for children diagnosed with autism.

The House passed HB 1428 to require health insurance companies to offer policies geared only for children. Some insurers are reluctant to do so because federal law now prohibits them from excluding children with a pre-existing condition.

DeQueen Chamber Banquet and Dentist Visit

2011-02-25T07:52:00.002-06:00

It was good to get back to Nashville yesterday. I arrived at my insurance office a few minutes before 3:00 and I just had time to go through one big stack of mail before heading to my dentist's office for a root canal. My tooth had hurt all week so I was glad to get some relief. He let me go just in time to get back to my office as it closed.

The DeQueen Chamber of Commerce Banquet was last night. After leaving the dentist I headed over to it. They had an incredibly good crowd and the food was good. I admit to sneaking out a little before it was over.

Week In Review

2011-02-24T15:15:00.002-06:00

State Capitol Week in Review

LITTLE ROCK – In regular sessions of the legislature the most important and the most difficult issues usually are considered in the second half. The 2011 session is no exception.

Major issues left to be addressed include sentencing reform, highway financing and Congressional redistricting. Also, final approval of the overall budget for state government is always one of the last things completed in a regular session.

A draft of a 160-page bill to change sentencing laws has been floating around the Capitol. Its purpose is to slow down the consistently rapid growth in the Arkansas inmate population. State prison units now house more than 16,000 inmates and at present rates of growth the number will be 20,000 within a few years. The Correction Department budget is $300 million a year, which is double what it was in 1999.

In general, the sentencing reform bill would expand parole and probation so that non-violent offenders serve an alternate sentence, rather than serving time in a prison barracks. That would make more space available for dangerous offenders.

The difficulty is in distinguishing between non-violent and violent offenders. For example, some inmates are now in prison on a relatively minor drug offense such as possession of a joint of marijuana. However, in years past they served time for a violent offense such as assault.

Prosecutors have been carefully reading a draft of the bill to make sure it will not inadvertently allow violent offenders early parole.

Supporters of legislation to improve highways face the challenge of identifying a revenue source. That means either raising taxes or diverting tax revenue from other services, like schools or prisons or colleges. Several legislators have said that any highway program that requires a tax increase probably would not be enacted by the General Assembly, but instead would be referred to voters in a statewide election.

Every 10 years, with results from the U.S. Census, the legislature redraws the boundaries of the state's four Congressional districts. The purpose is to preserve the "one man, one vote" principle. An individual or a demographic group does not have equal influence in a district of a million people as it would in a district with 500,000 people.

Recent Census figures indicate that each of our four Congressional districts should have about 731,000 residents. That means the Second District in central Arkansas must lose about 14,000 people and the Third District in northwest Arkansas must lose about 95,000 people. The First District in east and north Arkansas must gain about 44,000 people and the Fourth District in south Arkansas must gain 66,000 people.

It is possible that for the first time Arkansas will split counties to give all its Congressional districts the same population.

The Joint Budget Committee has been working steadily on spending requests by state agencies. The smaller boards and commissions, whose revenue comes from fees charged for services rendered, are the first agencies to have their budgets approved.

Budgets for the largest agencies won't be finalized until the closing days of the session. They include the Public School Fund, higher education, Medicaid, human services and prisons.

My Weekend In Progress

2011-02-19T12:01:00.002-06:00

Last night I joined some friends at their deer camp for some great smoked brisket and fixings. On the way into deer camp I noticed some yellow, spring type flowers in bloom. It was a great reminder that spring is coming.

I left Nashville about 6:30 this morning headed toward Mena. The Polk County Farm Bureau was hosting a breakfast for legislators. Representative Bell and I had the opportunity to visit with somewhere between 15 and 20 of our constituents. It seemed like a good meeting with some good questions from those in attendance. On the way home I stopped and visited at a couple different coffee shop type gatherings where I was exposed to much wisdom.

The Prostate Cancer Foundation is in Nashville this morning at the free health clinic. I stopped by there when I arrived back in town and had an exam and blood drawn for a PSA. It is important that men get those things checked and I try to do so annually.

The Lockesburg volunteer fire department is hosting a fundraiser this evening. I expect to drive over and eat chicken (or whatever) with them and do a little more visiting. For now, I need to go get the oil changed, fill the wood box at the house, and squeeze in a bicycle ride. Thanks for checking in.

Week In Review

2011-02-17T17:07:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – The stage has been set in the Arkansas Senate for the big showdown of the 2011 legislative session.

At one end of the street are legislators who want to cut taxes by as much as $50 million a year and perhaps even more. On the other side are the governor, administration officials and legislators who fear that the loss of revenue from so many tax cuts will force state government to trim vital services.

The House passed three separate tax cut bills and sent them to the Senate, where they will be considered with Senate tax cut bills.

The strongest support in the House was for HB 1056 to exempt low-income parents from state income taxes if they have two or more children. It passed 93-to-0. It would save low-income families about $3.8 million a year.

HB 1052 to reduce the sales tax on manufacturers' utility bills passed 88-to-8. It would save manufacturers an estimated $4.2 million a year by lowering the sales tax rates on their utilities from 3.125 percent to 2.625 percent.

The House also passed HB 1002 to repeal the state capital gains tax on the sale of Arkansas properties and investments in companies headquartered in Arkansas. The vote was 53-to-43. Administration officials say it would lower state revenue by $44 million in 2013, but the bill's supporters dispute that estimate.

All three bills were sent to the Senate and referred to its Committee on Revenue and Taxation, where two Senate tax cut measures are also on the agenda.

One is SB 276 to lower the state sales tax on groceries by half a cent, reducing revenue for state government by about $20 million a year. It's the only tax cut supported by the governor.

Another tax cut proposal on the committee's agenda is SB 274 to raise the threshold under which used car purchases are exempt from the sales tax, from $2,500 to $5,000. If enacted it would save used car buyers about $7 million a year.

Even if all the tax cuts are enacted this year, their financial impact would not exceed that of the historic tax cuts passed in 2007, when the legislature cut taxes by about $200 million a year. Those cuts included a reduction of the grocery tax, reduced sales taxes on manufacturing companies' utility bills and the exemption of about 81,000 poor people from the state income tax.

In other news, a bill has been filed to relieve the debt problems of the state unemployment insurance fund. SB 305 would authorize the governor to call a special election, and if voters approve the state could issue bonds to pay off the $330 million it owes to the federal government.

The federal government has lent that amount to the state to cover the costs of unemployment benefits, which have skyrocketed in the bad economy.

Also, the Senate passed HB 1018 to prevent "double dipping" by local elected officials who took advantage of loopholes in the law to secretly retire and then reclaim their position. That allowed them to simultaneously collect a paycheck and a retirement pension. That will not longer be allowed.

Week In Review

2011-02-10T13:18:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – The Arkansas Financial Transparency Act, which mandates that state agency spending be posted on the Internet, has gained enough co-sponsors to guarantee its passage in the state Senate.

Also known as the "open checkbook" bill, Senate Bill 221 was favorably recommended by the State Agencies and Governmental Affairs Committee and is scheduled for a vote by the entire Senate.

Under the bill, state agencies would have to post on the Internet the salaries of all employees, as well as expenditure data that includes amounts paid under contracts with private companies that bid on state projects. The data would include which vendors are awarded the contracts, the amounts of the contracts and whether they are for commodities or professional services.

The disclosure requirements also would apply to the governor, attorney general, secretary of state, land commissioner, auditor, treasurer and lieutenant governor. It also would apply to all boards and commissions, judicial offices, the Lottery Commission and legislative offices.

The expenditure data is scheduled to be online by July 1, 2012. The state Department of Finance and Administration will create and regularly update the website.

SB 221 has 25 Senate co-sponsors, which is more than enough to win approval in the 35-member Senate.
Also, the lieutenant governor has publicly expressed his strong support of the bill. Some senators have said the bill doesn't go far enough because it does not include state-supported colleges and universities, which every year receive hundreds of millions of dollars in tax revenue. Higher education uses a different accounting system so it would be very expensive to put its expenditure data online. However, the bill's sponsor has said that he wants to include higher education under the bill's requirements in the future.

In other business, the Senate passed a pair of bills to improve dental care in rural areas where there are few if any dentists. SB 43 would allow physicians and nurses to apply a fluoride varnish to children's teeth. The sealants have proven to be an effective way to prevent cavities. SB 42 allows dental hygienists to clean teeth without the supervision of a dentist.

The House Transportation Committee has endorsed SB 154 to prohibit drivers from talking on cell phones in school zones during school hours and when going through construction zones. It has already passed the Senate, so its final hurdle is consideration by the entire House.

Both the Senate and the House have each passed ethics reform bills. They will impose a one year "cooling off" period after an elected official leaves office in which the former legislator cannot become a registered lobbyist.

Also, the ethics law will limit how much a legislator can be reimbursed for trips to out-of-state conferences. They can still either drive or fly to conferences but they will receive expense reimbursements only for the cheapest mode of travel.

Chamber Banquet, Snow and Another Slow Week

2011-02-10T13:09:00.002-06:00

It has been another slow week in Little Rock. It appears that things are beginning to pick up. Some of this weeks slowness can likely be blamed on the weather. Speaking of weather I drove into Nashville yesterday. It was not a pleasant drive. The two hour drive took three and a half hours as I fought to keep the car on the road. By night the roads here in Nashville were in pretty good shape and it was no trouble to get into the office this morning.

Tuesday evening was the Nashville Chamber Banquet. My friend Attorney General Dustin McDaniel was the speaker for the evening and he did a great job. Representative Steel and I rode down and back with him. While I didn't stay for the whole banquet it was about as good as I remember. Tonight was to be the DeQueen Chamber's banquet but they have postponed it until the 24th.

One item of note is that I filed the grocery sales tax reduction this week. I was glad to help the Governor on this as we reduce state tax income by approximately 21 million.

Friday Morning Snow

2011-02-04T09:50:00.002-06:00

The forecast had snow so I got out of bed at 2:00 this morning and looked out. At that time there was no snow so I decided that we had missed it. This morning everything is white and it is steadily falling. My insurance office is open but I don't expect to stay all day. I am very thankful that I made it home yesterday before all of this.

Week In Review

2011-02-03T16:38:00.001-06:00

State Capitol Week in Review

LITTLE ROCK – The General Assembly has given overwhelming support to ethics legislation, which mandates that lawmakers must wait for at least a year after they leave office before they can register as lobbyists.

SB 194, the Senate version of the legislation, has 35 sponsors. That means it has the support of the entire membership of the 35-member Senate. It has been voted on favorably in committee and will come up for a vote this week in the full Senate. The House version of the bill is progressing with similar success.

The one year waiting period imposed by SB 194 addresses the "revolving door" issue that results when lawmakers immediately go from positions in the legislature to lobbying jobs for special interests. It has undermined public confidence in the legislative process and created perceptions that lobbyists have inordinate influence at the Capitol.

SB 194 applies to legislators who run for re-election in 2012. All 35 state Senate seats will be on the ballot next year because of reapportionment and the redrawing of Senate district boundaries. There are 11 senators who cannot seek re-election because of the term limits amendment. SB 194 would not apply to them, but it would apply to the other 24 senators should they choose to run for re-election.

Another provision in SB 194 limits how much legislators can be reimbursed when they travel out of state to officially approved conferences. The bill would limit their reimbursement to the amount of the cheapest mode of travel.

When lawmakers drive they are reimbursed for mileage, but on long trips the amount for mileage can exceed the price of an airplane ticket.

Under SB 194, legislators could still drive long distances to conferences but they would receive reimbursement only for the cost of a flight.

The Senate approved SB 154 to prohibit drivers from talking on cell phones in school zones during school hours and when driving through construction zones. The bill passed on a vote of 18-to-12, with 18 votes necessary for passage in the Senate. The bill was sent to the House and referred to the House Transportation Committee.

Also, the Senate passed SB 69 to prohibit the sale of herbal snuff to children under 18. Herbal snuff has no tobacco and comes in flavors such as grape, cinnamon and mint. Supporters of the bill say it gets children into the habit of dipping snuff and they are much more likely to experiment with smokeless tobacco products that are extremely addictive and harmful to their health.

The proposal to limit sales of herbal snuff passed on a 28-to-4 vote and was sent to the House, where it was referred to the House Rules Committee.

The House passed a couple of bills that affect scheduling in public schools. HB 1099 allows school districts to begin the year on the Monday of the week in which August 19 falls. Current law says that schools may not open earlier than August 19.

If August 19 falls on a Friday, as it does this year, schools can schedule opening day on Monday, August 15. The bill clarifies that schools may not open earlier than August 14, however.

Also, the House passed HB 1224 to extend for another two years the law that requires all school districts to schedule spring break at the same time - the 38th week of the school year.

Both House bills were referred to the Senate Education Committee.

Another Quiet Week

2011-01-28T07:39:00.002-06:00

Home sure looked good last night when I pulled up in the driveway. I have enjoyed leaving Little Rock on Thursdays and making it home to clear some mail and answer some work emails before quitting time. The free Christian Health Center needed help last night so I left Teague and Teague early and went down there for a couple of hours. It is an amazing ministry - the number of people in need is staggering.

Surely the legislature will get pick up some momentum this week. While I expect the first 2 or 3 weeks to be slow it is time for us to get on with business. The weekend looks as if it will be very, very nice. I hope to take a bicycle ride or two. I will update you later.

I Beat the Weather Home

2011-01-20T13:26:00.003-06:00

I am back in Nashville. When I left Little Rock the weather was trying hard to deteriorate into snow. Having gone through the 5 and one-half hour drive to Little Rock a couple of Sundays ago I had no interest in trying that again. The weather was snowy until somewhere around Malvern where it changed into a wintry type mix and by Arkadelphia it was just rain.

Hopefully I will gather some thoughts on the week and share them with you later.

Week In Review

2011-01-20T13:04:00.000-06:00

State Capitol Week in Review

LITTLE ROCK – A few state agencies and commissions, as well as state-supported universities, operate with independence from legislative oversight because their powers are granted to them in the state Constitution.

That may change after the 2011 session.

If Senate Joint Resolution 2 is adopted, and if it is approved by Arkansas voters, it would make those commissions and institutions more accountable to the legislature.

SJR 2 would refer a proposed constitutional amendment to the general election ballot of November 2012. If voters approve it the Highway Commission, the Game and Fish Commission, the Lottery Commission and higher education institutions would be more accountable to legislators and therefore to voters.

The legislature appropriates money for the operating costs of those commissions and universities, and that is pretty much the extent to which the legislature has any control over their decision making. Universities can raise tuition, add degree programs and borrow money for construction without having to get approval from the legislature.

The Game and Fish Commission has more motor vehicles than employees. It has leased hunting areas to gas exploration companies, causing some to question how the drilling of gas wells is compatible with the Commission's duty to manage wildlife.

Some legislators are frustrated by Highway Commission decisions on the location of new roads and improvements to existing highways. SJR 2 would have the legislature set the duties of the director of the Highway and Transportation Department. Now, the director's duties are set by the Highway Commission.

Some lawmakers have been frustrated when the boards of universities raise tuition and fees every year and then fault the legislature for failing to dedicate sufficient tax revenue to their institutions.

Much of the frustration with the independent commissions and universities is based on the fact that they are insulated from public opinion. When legislators face re-election they must explain their decision making to voters, but constitutionally independent agencies spend billions of dollars in tax revenue and don't have to answer to the general public.

Because of its potential to make far-reaching changes to the way powerful state agencies operate, supporters of SJR 2 expect a spirited debate on the measure. It has been referred to the Senate Committee on State Agencies and Governmental Affairs.

The State Agencies Committee began work last week on what will likely be a politically sensitive issue - drawing new boundaries for Congressional districts. Arkansas sends four U.S. Representatives, also known as Congressmen, to Washington, D.C. Boundaries are redrawn after every census to reflect population shifts.

The legislature will use numbers from the 2010 census to draw new Congressional districts of equal population. Congressmen are intensely interested in how the new map will look and are not bashful about making their own suggestions.

In other legislative news the Joint Budget Committee voted to not give any pay raises to judges and prosecutors. The committee had previously decided that legislators and constitutional officers would not get a raise next year. Several lawmakers said that highly-paid and perhaps all state employees may have to forego a raise next year.