Beebe talks China trip, Petrino accident

Gov. Mike Beebe’s upcoming trade mission to China may be a long-term investment for jobs in Arkansas, but the Governor said he hopes for near-term results.

Beebe also touched on a variety of other subjects including Arkansas football coach Bobby Petrino, State Surgeon General Dr. Joe Thompson and several tax initiatives headed for the November ballot.

“It would be great if we saw some immediate results from the trip,” Beebe said in a capitol press conference on Tuesday (April 3). He warned, however, that investment decisions can take a long time to develop and he was not sure how quickly a pay-off from the mission might take.

Beebe cited quick success from a European trade trip taken early in his tenure as Governor, but noted no results so far from a trade mission to Cuba he has also completed.

Beebe leaves Wednesday, April 4 and will return Monday, April 16, from China. He will meet with key business leaders interested in American investments, primarily “light and heavy manufacturing” prospects, Beebe said. He is also looking to broaden export opportunities for Arkansas products in China with the trip.

His chief of staff, Morril Harriman, is in Tokyo, Japan meeting with Asian business leaders in advance of a rendezvous with Beebe and the Arkansas delegation later this week.

The total budget for the China trip is $128,648, which will be paid for by state funds ($98,656) and private AEDC Foundation funds ($29,992). The state delegation includes Gov. Beebe, First Lady Ginger Beebe, Harriman and his wife, Susan, AEDC director Grant Tennille, AEDC project manager Mark Hamer, and two Arkansas State Troopers.

Some trip expenses were paid for personally by the delegation and are not factored into the costs of the trip.

The Governor would not characterize particular locations in Arkansas that might be targeted for foreign investment, such as the “mothballed” Fort Smith Mitsubishi factory.

“We will work hard for every community in Arkansas,” Beebe said. “We don’t play favorites.”

Beebe also referenced the mass layoff statistics, reported on Monday, which showed a record number since the Bureau of Labor Statistics has bee tracking them. Beebe said he was encouraged that despite the 16,600 workers laid off during 154 mass layoff events, there was still job growth in Arkansas for 2011.

TAXES AND ROADS

Gov. Beebe also weighed in on two new polling results from a Talk Business-Hendrix College Poll on a severance tax increase and a half-cent sales tax increase.  Both tax hikes would be dedicated for road improvements in Arkansas.

Beebe said he would “probably” vote against the severance tax increase being pushed by former gas company executive Sheffield Nelson. The proposal would raise the severance tax on natural gas to a flat 7% and would dedicate an estimated $250 million annually to road construction and repairs.

Beebe said he would “probably” vote for a legislature-referred half-cent sales tax proposal that would be dedicated to building a four-lane highway system statewide.

In the Talk Business-Hendrix College Poll, 41.5% said they would support the half-cent sale sales tax increase, while 50.5% oppose. Only 28% support raising the severance tax, while 55% oppose.

Beebe said he had no plans to campaign for the half-cent sales tax or against the severance tax. Beebe’s positions on the two tax initiatives are the most definitive stances he has given on both issues.

PETRINO AND THOMPSON

In his press conference, Beebe said he had talked to Arkansas head football coach Bobby Petrino, who was injured in a motorcycle accident on Sunday evening. Beebe said he wanted to respect Petrino’s privacy, but characterized the coach as “upbeat.”

Beebe also addressed the status of Dr. Joe Thompson, the state’s surgeon general, who was arrested over the weekend in an incident with the Little Rock Police.

On Monday, Beebe issued a statement saying he felt Thompson could continue to perform his duties while the case winds through the legal process.

Beebe said he would monitor the situation while away, but deal with Thompson when he returns from China.