story from Talk Business, a TCW content partner
Arkansas lawmakers moved one day closer to recess and final adjournment after approving a massive $4.9 billion spending bill, $170 million in surplus funds, and a new Senate leader.
Two identical versions of the Revenue Stabilization Act, which lays out the state’s spending priorities, were approved by both chambers, but still need to clear the opposite chambers.
All told, the measure includes increases for public education, Medicaid, and salaries for state employees. Legislators also approved a $125 million bond package for incentives for a $1.1 billion steel mill superproject to be located in Osceola, Arkansas (Mississippi County).
Two bills outlining spending for $170 million in surplus funds – known as General Improvement Funds (GIF) – laid out priorities for excess collections during the past biennium. Legislators will spend the surplus on items that include:
• Higher education projects across the state
• U.S. Marshals Museum in Fort Smith
• Electronic health records grants
• A state police wireless information network upgrade
• Knowledge-based technology business grants
• Volunteer fire departments
• Department of Corrections facilities
• State capitol improvements
In the Fort Smith and Northwest Arkansas areas, the specific projects and amounts included:
• University of Arkansas: $3 million, for construction, renovation, maintenance, critical maintenance, equipment, security enhancements, technology upgrades/equipment and library resources
• University of Arkansas at Fort Smith: $1.5 million, for construction, renovation, maintenance, critical maintenance, equipment, security enhancements, technology upgrades/equipment and library resources
• Northwest Arkansas Economic Development District: $2 million
• U.S. Marshals Museum: $1 million, funding through the Arkansas Department of Parks & Tourism for planning, construction and development
• Arkansas Economic Development Commission (statewide): $1 million, for rebates, grants, and incentives for compressed natural gas and liquified natural gas refueling stations and qualified clean-burning vehicles
Link here for a PDF of the projects, programs and other items funded with the General Improvement Fund.
They also approved more than $120 million in net new tax breaks, although most of the cuts will not go into effect until year after next. Lawmakers are calculating that savings from a health insurance expansion plan tied to federal Medicaid funds – the “private option” – will result in significant state savings to pay for the tax cuts.
Also, the Arkansas State Senate chose Sen. Jonathan Dismang, R-Beebe, to be the next President Pro Tem of that chamber in the 2015 90th General Assembly.