Beebe Submits Plans For Spending Budget Surplus

Gov. Mike Beebe (D) released his supplemental appropriations requests for the Arkansas General Assembly to consider in the upcoming fiscal session, which starts Feb. 13.

The requests are Beebe’s blueprint for spending the $72.2 million budget surplus from the fiscal year that concluded June 30, 2011.

Beebe’s requests include:

• $10 million for public employees’ merit adjustment fund
• $9 million to the Arkansas Department of Corrections for overtime and holiday pay
• $3.8 million for the State Hospital for compliance and regulations standards
• $2.7 million request for the financially troubled Arkansas Forestry Commission
• $2 million to the Arkansas Department of Corrections for back-pay for state inmates housed in county jails
• $1.8 million to the Arkansas Department of Corrections to reduce case-load assignments
• $1.4 million to the Arkansas Department of Corrections to repair an inmate housing facility on Roosevelt Road in east Little Rock.
• $130,000 to replenish the Governor’s Emergency Fund, which has been depleted for several immediate needs
• $110,000 for Drug Court funding
• $35,000 to the Arkansas Parole Board

Beebe’s budget requests totaled $30.5 million, which would leave about $41.7 million in remaining funds from the budget surplus for General Improvement Fund projects in the 2013 regular session.

Rep. Kathy Webb (D-Little Rock), co-chair of the Joint Budget Committee, said she didn’t see any items to oppose.

“I would support all of these. The holiday pay [for Corrections’ employees] is something we seriously need to do address,” she said.

Webb also said that a supplemental appropriation would likely be needed to address funding shortfalls with the state’s trial court assistants. The Governor’s Emergency Fund has been subsidizing this budget shortfall, but Beebe did not unveil a proposal to shore up the recurring fiscal problem.

“We’re still in discussion on that,” said Webb, referencing an audit report due later this month. “We need to find a long-term solution for it and come up with a solution that’s not month-to-month.”

Sen. Gilbert Baker (R-Conway), the other co-chair of the Joint Budget Committee, said the Governor’s requests would lead to much legislative discussion.

“The Governor is asking for a lot of one time money,” Baker tells Talk Business. “Several of the requests will have to be vetted by the legislature, which is normal and  expected.”

Baker singled out the Forestry Commission request, as well as the merit pay and holiday pay appropriations.

“The Forestry money will continue to be an item that needs to be discussed,” Baker said. “And, the two large items in the supplementals — $9 million for Corrections and $10 million for merit adjustments — I basically support those, but there’s going to have to be a lot of explanation and discussion on those two items. There are still some questions about the needs for those two items.”