Arkansas legislators discuss budget, stimulus, federal debt

Arkansas lawmakers are concerned about the state’s debt to the federal government and they couldn’t wait to tackle the subject at their final Legislative Council meeting before January’s legislative session.

Worried about a $330 million debt in the state’s unemployment trust fund to the feds, lawmakers grilled state employees about the ability to pay the money back, noted this report from Talk Business, a content partner with The City Wire.

Senators and state representatives asked Bureau of Legislative Research assistant director Richard Wilson about the matter in his revenue report, which was first on the agenda. Wilson said there was not money in the current budget to pay back the multi-million dollar borrowing despite revenues trending about $55.3 million from last year.

Wilson said, as has been previously reported, that a 10-member group of state chamber and labor leaders are negotiating a proposal to bring before legislators in January 2011. Their group is discussing a reduction in benefits for laid-off workers and ways to shore up the depleted fund through business taxes.

Later in the meeting, a report was offered regarding federal stimulus funds. Lawmakers again questioned if stimulus funds could be steered towards the unemployment trust fund debt, which they cannot. A Department of Workforce Services report did not address the trust fund’s shortfall.

In other business, the Legislative Council received reports on a number of subjects:
• BIG MAC COMPLEX
For nearly an hour, lawmakers debated a policy for the use of its new $7 million-plus legislative meeting room complex, which also house the Bureau of Legislative Research. The two state-of-the-art meeting rooms and lobby area are currently utilized by Legislative Council and Joint Budget primarily. Other groups have requested use of the facilities; lawmakers tabled action on developing a policy after nearly an hour of discussion.

• STIMULUS
As of Sept. 30, 2010, the Arkansas Office of Recovery and Reinvestment awarded it had received and spent $1.9 billion of its expected $3.2 billion in federal stimulus funds. A representative of the Governor’s office told lawmakers that "roughly" 500 jobs were created in state government by stimulus funds, which have differing degrees of expiration.

• CORRECTIONS
The Department of Corrections reported on its statewide population count. As of Dec. 10, 2010, the state’s correctional facilities have a grand total of 14,046 in its system. There are 12,948 men and 1,098 women comprising those numbers. Both numbers exceed the capacity of correctional facilities by 4% to 7%. Another 2,233 inmates are in work release programs or county jail backup facilities.