Keet: Gov. Beebe is Obama’s ‘silent partner’ (Corrected)

Editor’s note: The City Wire recently was granted a face-to-face interview with GOP gubernatorial candidate Jim Keet. An interview was conducted in July with Gov. Mike Beebe. Link here to the last of the three-part series resulting from the Beebe interview.

Jim Keet is likely to be outspent more than 5-to-1 in the gubernatorial campaign against Gov. Mike Beebe, so don’t be surprised to learn that Keet will use much of his time and money to tell voters he believes Beebe is President Obama’s “silent partner.”

Keet, a Little Rock restaurant owner and former state Senator, said he will need to spend at least $1 million to be competitive “and win” against Beebe, who recently reported raising more than $3.7 million. Keet acknowledged his task, saying he’s up against “the establishment Governor” who is “going to raise as much money as he needs.”

‘TRASHING’ DEBATE
The race between Beebe and Keet recently began to heat up following a primary election in which they were unopposed in their respective primaries. Beebe has accused Keet of “trashing Arkansas” following Keet’s questioning of the state’s economic condition and government growth. Specifically, Keet said Beebe is being untruthful to say his administration has created 25,000 new jobs.

“First of all, you can’t take an announced paycheck to the bank. And, as we have seen, many of the jobs that have been announced do not come to fruition,” Keet said during a recent interview with The City Wire. He added that federal employment data shows a decrease in overall Arkansas jobs, but an increase in government jobs since Beebe became governor.

Indeed, the Bureau of Labor Statistics shows July 2010 non-farm employment at 1.169 million, down an estimated 31,800 jobs compared to the 1.201 million jobs in January 2007. Government jobs totaled 209,000 in January  2007 and 219,900 in July 2010.

“The fact of the matter is that I have been going around telling the truth about the challenges that we face, and then outlining my vision for the future on how we remedy those problems,” Keet said. “But in order to have a realistic approach to the future, you have to be honest about where you’re starting.”

KEET RESIDENCY
Beebe has also criticized Keet for spending much of the decade living outside Arkansas.  Keet moved to Pensacola, Fla., in January 2003 to become chairman of a company. Keet said it was a tough family decision to move to Florida, but one that was made knowing they would move back to Arkansas at the first opportunity. Keet returned to Arkansas in August 2008. Keet also said that having to move around is also part of being a business leader. (The previous version of this story noted that Keet said the business sold in 2008. Keet did not mention a year in which the business sold. We apologize for the error.)

“The world that Gov. Beebe lives in is running for office for the last 30 years or the last 28 years — being a career politician. I live in the real world. I live in the business world. Sometimes your business obligations and responsibilities take you out of state for a time. And that was the case here,” Keet explained.

Keet used the question about Beebe’s charge to turn the political tables and push a theme Arkansas voters will see more of between now and Nov. 2.

“The better question, from my perspective, is where was Mike Beebe when he wouldn’t take a position on the stimulus package? He said it was none of our business. Where was Mike Beebe on Obamacare, where he wouldn’t take a position? … Where was Mike Beebe when the 21 states and the NFIB stood up for the 10th Amendment. I’ll tell you where he was. He was standing right by Obama’s side in every instance,” Keet said. “He has been President Obama’s silent partner on every major issue that effects Arkansas.”

TAX CUT PLANS
Keet partially agrees with Beebe’s strategy on two major issues related to education, economic development and taxes. Beebe has made the “twin pillars” of education and economic development his top administrative priority, saying that creating a better educated workforce will solve many of the state’s socio-economic issues.

“I would take it a step further however, and say that it needs to be a top-to-bottom approach,” Keet said when asked about Beebe’s twin pillars. “There are some people who don’t have the capacity to or the desire to pursue higher education and in those cases we have to do a better job with workforce development and workforce training.”

Beebe, who has pushed the largest tax cut in state history through the removal of 4% of what was a 6% state sales tax rate on groceries, has said he wants to cut the remaining two cents. Keet wants to nix the 2 cents, but says the state may get more results from other tax cuts.

“Right now, in the current economic circumstances, what I would look at is, which is going to have the best long-term ramifications: Going ahead and getting rid of that two cents, the remaining two cents, or would reconfiguring the capital gains tax or another tax actually create a more vibrant economy? Which is going to create more jobs and what would the economic impacts be?” Keet said.

CAMPAIGN STRATEGY
Part of Keet’s plans if elected include a push to reduce the state’s capital gains and corporate tax rates. He also promises to reduce business regulations, saying he would “reward department heads” who responsibly reduce regulations. Government jobs won’t grow in a Keet administration, with the candidate promising no gain in government jobs in his first term.

As of Aug. 23, Keet had made campaign stops in 50 counties and he says his schedule will take him to all 75 counties. Keet is convinced his best chance to win is overcoming Beebe’s money advantage by meeting with as many voters as possible. The voter visits, Keet noted, will help him maximize on the anti-D.C., anti-incumbent mood among Arkansans.

“Direct voter contact is a key component of it,” Keet said of his campaign strategy. “My message is resonating where I go because people understand that in these tough economic times we need to have a businessman with that skill set. … This is a year where I think Arkansans are going to draw a line in the sand, and they are either going to say, ‘I am on Obama, Pelosi and Reid’s side’ or they are not. It’s very simple.”