Arkansas Senate Report: Tax cuts and prison reform

Editor’s note: Arkansas Sen. Jake Files, R-Fort Smith, provided the following commentary on the previous week of the 88th Arkansas General Assembly.

Things are finally hitting stride in Little Rock as opposing forces are making their marks and trying to influence policy decisions. This week, we will see some more activity on several fronts. It should make for some interesting discussions.

TAX CUTS
We’ll start here because this one has become a hotly debated topic from the Governor’s office and speeches to many who have emailed in support or in opposition. The House last week passed out three tax cut measures after a staunch effort by the Administration to kill them.

The largest of the bills was HB1002 by Rep. Ed Garner (R-Maumelle), which eliminated the capital gains tax. It had no revenue impact in 2012, but the Department of Finance estimated the impact at over $40 million dollars in 2013.

The other two bills were a half-cent cut in the manufacturer’s taxes on utilities (badly needed) and a technical correction that would allow a single parent head of household to claim a tax deduction that was inadvertently left out of a 2009 tax code revision. These bills were fiercely fought in committee and the House floor, but all three of them passed. Incidentally, this is another small example of the difference in a more divided chamber of R’s and D’s. The bills now go to the Senate for debate and potential passage.

You have probably heard that the Governor believes we have room but for one tax cut, and that is a reduction of a half-cent on groceries (revenue impact about $15 million). A noble call, but there has been a great deal of skepticism from Republican and Democrats alike about how much this bill really saves people or creates (or retains) jobs. I would love to eliminate this regressive tax in full, but I can also tell you that I favor cutting taxes to help businesses and manufacturers get back on their feet first so that we can get people back to work again.

The dilemma to me is quite simple. We talk about being conservative, and in fact, most candidates in Arkansas campaign on that very premise. What we don’t do a very good job of doing is cutting the growth of government and in particular, the spending. I believe the people of Arkansas want cuts in spending and cuts in taxes — in that order. To do it the other way may put us in peril of cutting education spending or other areas we must continue to fund in the case that the economy is not on the upswing that some predict (and who can accurately tell?)

In summary, I am for cutting as many taxes as we can cut, but I am also for finding the most responsible, calculated ways to do that. We simply must identify ways to limit the growth of government, and I believe we are making solid steps in establishing the future of a more conservative Arkansas in the 2011 Session.

PRISON REFORM
As you may or may not know, Arkansas is on an unsustainable pace as it relates to prison population and operational cost, and to do nothing is simply not an option. A working group was established by the Governor to address the problem with input from outside experts who had been a part of similar transitions in other states. The premise was that prison should be reserved for violent criminals — the people we are scared of as opposed to the people we are mad at.

The draft bill was released last week. It contained 160 pages and basically re-wrote much of the criminal code. It was supported by the Police Chiefs Association, the Sheriffs Association, and several other groups with “skin in the game.” Where it hit a snag was with several prosecutors who voiced their concerns loudly and made a statement that they believed we were simply opening the prison doors letting the violent offenders run free (after 120 days in many cases). They identified about 10 issues they had with the new bill, and each of these are being closely scrutinized.

I can tell you the bill has bi-partisan support in the House and Senate, and to a person, no one is for letting violent criminals released. There possibly could have been some drafting errors, and in those cases, they will be changed, but this also involves a seismic shift in the way we think about incarceration.

What we are doing is not working. We are continuing to lock people up, but they also continue to re-offend in high numbers. It is time that we look at programs that are evidence-based and have been shown to work other places. Ideas like the Drug Courts that give people a chance to be productive members of society and chase their personal demons away. I am optimistic that we will reach some compromise this week and move forward on what might be one of the most far-reaching pieces of legislation this Session.

PERSONAL CONTACT
Last week was a treat for me as my 4-year old daughter spent two days at the Capitol with me attending meetings. What a great way to see government in action, and if your child is interested in serving as a page for the Senate, please let me know. They have to be 12-18 years old, and I think it is a front seat to democracy in action.

As always, please don’t hesitate to contact me by email or phone if you have an issue or problem with state government. The direct phone to the Senate is (501) 682-2901, and my e-mail is www.jakefiles.com

I look forward to hearing from you.