Budget, lottery part of first week of Arkansas’ first-ever fiscal session

Members of the Arkansas General Assembly made progress this week on two key items — approving an almost $4.5 billion budget and clarifying lottery scholarships — in the ongoing fiscal session

On Thursday, the Arkansas Senate approved a resolution that will allow the Revenue Stabilization Act – which outlines state spending of nearly $4.5 billion – on a 32-0 vote, according to this report from Roby Brock.

Amendment 86 to the Arkansas Constitution — approved by voters in 2008 — created a fiscal session in even-numbered years that is limited to consideration of a narrow range of budgetary matters. The fiscal session may last 30 days, and may be extended one time, for no more than 15 days, with a three-fourths vote of the House and Senate.

“However, Members are committed to working quickly and efficiently to ensure this historic session is productive and brief,” Rep. Tracy Pennartz, D-Fort Smith, noted in an e-mail to The City Wire. “More substantive issues concerning healthcare, highways, and prisons will be debated and discussed during the 2011 Regular Session.”

Pennartz said the most important thing legislators will do during the fiscal session is agree on details of the revenue stabilization act.

“This act prioritizes spending into categories and governs the flow of money to state agencies based on available revenue which ensures the state does not spend money it does not have,” Pennartz explained. “In the event of a revenue shortfall, this mechanism protects the most vital programs, like education.”

The fiscal session follows two budget cuts totaling $206 million that Gov. Mike Beebe announced after several months of falling tax collections.

In his report, Brock notes the following key budget actions:
• The omnibus spending bill — likely to be introduced next week — will provide for a balanced state budget, including approximately $206 million more in spending than the current fiscal year, which ends June 30, 2010.



• Lawmakers and Beebe also reached a tentative agreement to make up spending cuts in the current year. Through a combination of monies from the General Improvement Fund (GIF), a discretionary fund controlled partially by the Governor and both houses of the General Assembly, lawmakers hope to patch holes in the current budget totaling nearly $13 million.

Also, Pennartz said HCR 1006 sets scholarships at $5,000 a year at four-year and $2,500 a year at two-year colleges and universities. If passed, scholarships will be available starting this fall.