Lawmakers Eye Budget, Business Pressure In Final Week Of Session

The likely last week of this year’s regular legislative session starts Monday with lawmakers facing a boatload of issues and negotiations involving the state’s budget and national pressure over a bill impacting religion.

The budget will be unveiled at 9 a.m. Monday, Joint Budget Committee co-chair Rep. Lane Jean, R-Magnolia, told lawmakers Friday, but early versions have been floated.

The state budget, which is a blueprint for state government spending, will fund state government from July 1, 2015 until June 30, 2016. By week’s end lawmakers will review and are expected to pass a balanced budget and the accompanying Revenue Stabilization Act (RSA) that will set spending priorities for the next biennium.

The $5.186 billion RSA proposal has $5.069 billion earmarked for Category A spending. Another $99.19 million is staggered in Category B with $7.629 million in Category B1 and $10 million in Category C.

Category A outlines top spending priorities and Category C is the last spending priority silo.

AEDC: A NEW DIRECTOR, NEW BUDGET
New Arkansas Economic Development Commission executive director Mike Preston is a guest on this week’s edition of Talk Business & Politics, but he offers little insight on the controversial HB 1228, the Religious Freedom Restoration Act.

The measure would prevent state, county and local governments from doing anything that would violate someone’s religious beliefs unless there is a “compelling state interest and is the least restrictive means of furthering that compelling governmental interest.”

All weekend his boss, Gov. Asa Hutchinson, has reiterated his support for the bill that has stirred national fervor among gay rights activists and high-profile CEOs. Indiana passed a similar law last week and it has created a firestorm.

The bill will be debated in the House Judiciary Committee on Monday.

Preston does lay out his agenda for when he starts the new job on April 6.

The budget for the Arkansas Economic Development Commission will also be in the hands of the Senate Monday.

The proposed budget will include a $200 million appropriation for so-called super projects, $50 million for the Quick Action Closing Fund and $30 million to support technology acceleration programs around the state.

The following is a breakdown of other news expected this week in the Capitol:

PRESIDENTIAL PRIMARY
The House State Agencies and Governmental Affairs committee is expected to take up a bill that would change the state’s presidential primary date next year.

The Senate approved Senate Bill 389 by a 20-5 margin on Friday. The bill, sponsored by Sen. Gary Stubblefield, R-Branch, would set a March 1, 2016 presidential primary for the Republican and Democratic nominees for the White House.

Supporters have said the primary would be held, along with several other states in the region as part of a so-called “SEC Primary” on Super Tuesday.

REGIONAL JAILS
A bill to create regional correction facilities in Arkansas is expected to be on the House floor Monday.

Sen. David Sanders, R-Little Rock, sponsored Senate Bill 618 earlier in the session. According to the bill, the Arkansas Department of Correction would be allowed to contract with counties and private contractors to keep minimum security inmates.

The idea is used in several other states in the region, including Mississippi.

TEN COMMANDMENTS
A bill that would support a plan to build a monument in honor of the Ten Commandments will also be heard Monday in the House.

The House State Agencies and Governmental Affairs committee approved Senate Bill 939, sponsored by Sen. Jason Rapert, R-Conway, during a meeting Friday.

Under the bill, the monument would be built, using private money, somewhere on the grounds of the capitol. Supporters have said the bill would honor the moral and ethical heritage of the state, while opponents have argued it violates the principle of separation of church and state.

CAPITAL GAINS
A Senate committee is expected this week to take up a capital gains tax exemption rate bill.

The bill, House Bill 1402, is sponsored by Rep. Matthew Shepherd, R-El Dorado.

Under the bill, lawmakers would attempt to move the exemption rate back to 50%. The rate was set in the 2013 session, but was reduced to 40% as part of an amendment to an overall tax cut approved by lawmakers earlier in the session.

The bill would move the 40% rate to 45%, effective Feb. 1, 2015 and move the 45% rate to 50% on July 1, 2016.

A $10 million exemption threshold would remain in the bill. The bill is expected to have a $6 million impact on the FY 2016 budget and an $11.8 million impact for FY 2017, officials with the Arkansas Department of Finance and Administration have said.