Arkansas Legislative Preview: Lottery, constitution and ethics

Editor’s note: The following is the last of three articles by Talk Business Editor Roby Brock, who is a content partner with The City Wire, about nine big issue areas most likely to dominate activity during the 88th Arkansas General Assembly. The Assembly convenes Jan. 10. Link here for the first article in the series, and link here for the second article.

In the last of our three-part series previewing the upcoming legislative session, we look at potential debates surrounding the lottery, independent state agencies, and ethics reform.

The 88th General Assembly begins on Monday (Jan. 10).

LOTTERY
Two years ago when we previewed the 2009 legislative session and the work surrounding a state lottery, we noted that the heavy lifting would be on creating the framework for the scholarship lottery’s start-up.

The lottery had a successful first year in terms of a quick start-up, revenue projections, and certainly scholarships for the college-bound. However, the lottery’s warts will make this session a difficult one for its directors and management.

A number of problematic internal controls were revealed in a scathing audit of the lottery’s administration in late 2010. Lawmakers know that the lottery’s critics and the general public are insisting on higher standards of operation. Some legislators will take up the crusade and make the pursuit of lottery perfection his or her cause.

The potential to see reduced scholarship amounts based on future revenue projections will also be a hot topic of debate.

Expect to see a lot of legislative inquiry on the inner workings of the lottery from how it handles contracts to its marketing activities to its constitutional independence.

CONSTITUTIONAL INDEPENDENCE
Speaking of independent constitutional agencies, the Arkansas Game and Fish Commission and the Arkansas Highway Commission can expect additional scrutiny this session. You may even see efforts made to allow a public vote on rescinding their independent status.

Gov. Mike Beebe says he’s open to the idea.

Game and Fish has brought hardships on itself. During the past year, it has been at the center of some scandal doozies. The nature agency has more state vehicles than employees; it tried to circumvent the Freedom of Information Act; and it has been in a high-stakes pissing match with former commissioner Sheffield Nelson, which has garnered the commission some unsavory headlines.

The Arkansas Highway Commission is undergoing a renewed look at its department operations as a huge gap between tax revenues and highway wants and needs widens. By some estimates, there are $19 billion in road needs across the state, but only about $4 billion in funds to serve those interests.

A blue ribbon panel sought to find new ways to pay for more roads, but most of its proposals included tax hikes or shifting general revenue money away from existing government programs. There is not much gubernatorial or legislative support for the ideas, although House Speaker Robert Moore says he’ll push for something.

All of this activity has produced a rising chorus to see that more money is spent on roadway infrastructure in densely-populated areas of the state, a.k.a. northwest and central Arkansas. Highway commissioners contend that the money is already disproportionately shifted to these areas, and besides, if all the money was moved to population centers, it still wouldn’t be enough.

Expect emotion to trump logic in this debate. Lawmakers will at least push a constitutional amendment to have highway commissioners elected; they could go even further and call for an all-out repeal of the Mack-Blackwell amendment, which passed in 1952 to make the highway department and independent outfit.

ETHICS
Last, but certainly not least, Arkansas lawmakers are openly discussing changes to the state’s ethics laws. Conviction is driving the debate for some, while others see political opportunity.

Legislators are considering everything from limiting their per diem expense reimbursements, altering travel expense loopholes, and a cooling-off period for former lawmakers before they could lobby in the capitol halls. There is even support for the "Wal-Mart rule," which would prohibit lobbyists from so much as buying a cup of coffee for a legislator.

That could cut down on the lunchtime wait at Doe’s or Cotham’s, and it would certainly put a dent in the after-hours crowd at The Peabody or Capital Hotel Bar. The real proof will be in the pudding on ethics reform. Introducing the legislation is going to be the easiest part of passage. Finding a majority of votes in two committees and two legislative chambers may pose a bigger ethical dilemma.