Gov. Hutchinson delivers final state of the state address

Gov. Asa Hutchinson closed out his final state of the state speech to the Arkansas legislature with a litany of accomplishments, a laundry list of budget requests, and a liturgy of hope for the future.

Arkansas lawmakers convened Monday (Feb. 14) for their biennial fiscal session, which is expected to last three weeks. Legislators will consider the annual budgets for all state agencies, but may delve into controversial policy issues such as abortion bans or critical race theory, if two-thirds of the legislature approve.

Hutchinson, a two-term Republican governor, gave his first state of the state address in January 2015 after winning the governor’s race in November 2014. For his eighth address, he reflected on his successes.

He noted that unemployment stood at an all-time low of 3.1%, while jobs have grown by 81,000 since his first term. He touted 556 incentive agreements with new and existing businesses that he said created 25,000 new jobs.

“I wanted to be the jobs governor, and through the work of Mike Preston and the Arkansas Economic Development Commission and our many partners, we’ve had historic success,” Hutchinson said in his prepared remarks.

He also said that cutting the individual income tax rate from 7% when he came into office to 5.5% when he leaves office was monumental. Hutchinson and state lawmakers have passed a plan that will further lower the individual income tax rate to 4.9% in the coming years.

“When I came into office I promised to cut middle-income taxes by $100 million. People said it couldn’t be done. Well, we did it in the first year. Then, we went on to provide tax relief to every Arkansan,” he said.

“These reductions return money from the government coffers to the hard-working Arkansans who need this money to pay for the increasing costs of providing for their family. They need fuel to get to work each day and tax cuts allow them to have more money in their pocket to invest or spend on the necessities of life,” Hutchinson added. “The cumulative total of these annual income tax reductions over the past seven years exceeds $1 billion. We did this while also giving teachers raises, increasing funding for education, and creating a record $1.2 billion reserve fund.”

In the budget portion of his speech, Hutchinson touted increased funding in his proposed $6 billion budget for public education, health care and human services, and public safety. Hutchinson’s budget is approximately 3.3% higher than the previous fiscal year and includes additional funding for a backlog of developmentally disabled citizens who need government services.

The governor said he wants to increase salaries for state police officers and he encouraged local governments to find ways to pay more for law enforcement. He offered $5 million in new funding for law enforcement equipment, such as body cameras and bulletproof vests. He also advocated for $60 million to $100 million to expand up to nearly 500 new prison beds.

“Let me emphasize that this need for a new facility is not a reflection of a change in incarceration policy. It is simply the fact that we have a growing state. We are growing in projections of 1.4%,” Hutchinson noted. “My finance team led by Secretary Larry Walther conservatively estimates that we will have a $500 million surplus on June 30. We have sufficient room to address these urgent public safety needs.”

During this portion of the governor’s speech, he was interrupted by protestors in the House gallery who are opposed to the building of new prison beds. The protestors were escorted from the House chamber while chanting “no new cages.”

Finally, Hutchinson called for a new task force to work on an area of economic development that he thinks will be historic and vital to the future of the state. He announced the creation of the Arkansas Council on Future Mobility to advise on state policy to assist the private sector in areas such as electric and autonomous vehicles, drone delivery, and advanced air mobility.

“As governor, I won’t be here for the end of the story but together we can write the first chapter,” he said of the council’s work. “It will examine workforce training, accessing federal funding, and will make recommendations before the next general session of the legislature.”

Hutchinson closed his final state of the state speech with a call for political civility and leadership that is less reliant on divisiveness.

“Leaders can appeal to the instincts of fear or they can lead with hope. In today’s world and, yes, in Arkansas, let’s join together to bring out the best of our fellow citizens. I have never been more hopeful and optimistic about the future of our state. Let’s work with courage to unite, inspire and lead with hope,” he said.