Capitol Notebook: Spending Bills Introduced, Tax Cut Bill Coming To Committee

It was an appropriate day for appropriations as the Joint Budget Committee introduced 32 appropriations bills for state agencies and constitutional officers Tuesday.

The committee introduced House Bill 1097, which covers the state turnback money for cities and counties for fiscal year 2016.

Under the bill, cities would receive $180 million in so-called special revenues and will receive $29.3 million in general revenues from July 1 until June 30, 2016.

Counties would receive $200 million in special revenues as well as $21.6 million in general revenues for the same period, the bill noted.

The special revenue accounts will remain the same from 2013, while general revenues for both cities and counties would see a reduction.

Cities received about $30 million in funding in 2013, while counties received about $22 million in funding, according to the 2013 law.

Jonesboro Mayor Harold Perrin, who serves as chair of the Arkansas Municipal League’s Economic Development Advisory Council, said the turnback money helps cities and counties with needs.

“All cities look forward to it,” Perrin said of the funding.

Perrin said Jonesboro uses its share of the turnback money to help with city street projects, while other communities use the money to help with infrastructure needs.

Also introduced Tuesday were appropriations bills for the Secretary of State (HB 1101), Treasurer (HB 1098), Supreme Court (SB 70) and Land Commissioner’s (HB 1096) offices.

The proposed $19.3 million budget for the Secretary of State includes nearly $8 million for salaries and $2.4 million for election expenses while the nearly $5 million budget for the Treasurer’s office includes $2.2 million for salaries and $1 million for operations.

The Supreme Court budget is $4.6 million to cover salary and operations while the Land Commissioner’s budget is $3.6 million for salary and operations.

FLOOR ACTION
The House voted 99-0 to approve a pair of education bills – HB 1011 and HB 1014.

HB 1011, sponsored by Rep. Nate Nell, R-Mena, would seek to give the Department of Higher Education the authority to approve a scholarship hold for up to two years.

Bell told the Education Committee on Thursday of last week that he received a call from a constituent about a problem. The person told Bell his family member was going to give up a scholarship in order to complete a year-long mission trip for their church, Bell told House members.

Most scholarship programs that are done by the state Department of Higher Education have provisions to cover issues like that. However, the Governor’s Distinguished Scholars program does not do that, Bell said.

The bill would seek to amend state law to include the program, Bell said.

The bill now heads to the Senate.

HB 1014, sponsored by House Speaker Jeremy Gillam, R-Judsonia, would exempt state institutions, political subdivisions and any other applicable entity with tort liability immunity from the requirement to obtain general liability insurance coverage when obtaining a child care facility license.

Gillam said on the House floor that the bill would seek to “clean up technical mistakes” in current law and would extend the protection to pre-kindergarten programs.

The bill also heads to the Senate.

On Wednesday, the Senate Revenue and Tax Committee is scheduled to hear SB 2, Gov. Asa Hutchinson’s middle class tax cut plan. The measure is expected to have a $33.7 million impact in the next fiscal year and a $102.1 million impact in the following fiscal year, according to state finance officials.

Hutchinson wants the tax relief as part of a larger step to lower income taxes on Arkansans, a move he contends is necessary to keep Arkansas competitive with surrounding states.

BILLS FILED
The following major bills were filed Tuesday:

• House Bill 1106 (Rep. Marshall Wright, D-Forrest City) – concerning the membership of the parks and recreation commission.

• Senate Bill 76 (Sen. Bart Hester, R-Cave Springs) – to allow a public school to exceed the maximum class size as adopted by the state Board of Education under certain circumstances.

• Senate Bill 64 (Sen. Jon Woods, R-Springdale. – to provide for an enhanced penalty for the offense of driving while intoxicated when a person causes an accident or drives without a driver’s license in effect while intoxicated.

SCHEDULE
The following is the schedule of hearings set for Wednesday in the Arkansas General Assembly.

House of Representatives
10 a.m. – City, County and Local Affairs, Room B in MAC.
10 a.m. – Aging, Children and Youth, Legislative and Military Affairs, Room 130.
10 a.m. – Insurance and Commerce, OSC.
10 a.m. – State Agencies and Governmental Affairs, Room 151.
12 p.m. – Rules, Room B in MAC.

Senate
10 a.m. – Education, Room 207.
10 a.m. – Judiciary, Room 171.
10 a.m. – Public Health, Welfare and Labor, Room 272.
10 a.m. – Revenue and Taxation, OSC.
11 a.m. – Rules, Resolutions and Memorials, Room 309.