Arkansas State Legislature Not Thinking Big or Long-Term

The main focus of this legislative session has finally shifted to the topics of tax cuts and the Medicaid private option.

The on-going tax cut debate has caused me to wonder why legislators are not thinking long-term when considering $100 million in tax cuts?

Arkansas has an opportunity to dramatically change it’s future, but it seems the Legislature is pushing for tax cuts that won’t make a major difference in the daily lives of middle-class and lower income citizens.

Here’s what I’m driving at.

Earlier this session, legislators reduced lottery scholarships because of reduced lottery revenue and the $20 million reserve was in danger of being depleted in three years.

When the lottery scholarship first began in 2009 an incoming freshman to a 4-year college could receive a $5,000 a year scholarship if they qualified. Now with the reduced lottery scholarships incoming freshman to 4-year college only receive $2,500, with staggered increases so that they must wait until their senior year to get a $5,000 scholarships.

If we have $100 million in state government funds a year that could be cut, why not divert that money to the lottery scholarship program and restore the scholarships to $5,000 for each year?

Actually, legislators could craft legislation that brings the best of both worlds. For the first two fiscal years divert $200 million into the scholarship reserve and once that is completed implement the tax cuts.

An injection of $200 million into the lottery scholarship reserve, plus the yearly lottery revenue, would likely cover $5,000 college scholarships to 4-year school for the next 15-20 years, to say nothing for less expensive 2-year schools.

Or, Arkansas could be very bold and for the next five years build up $500 million into the lottery scholarship reserve. Imagine what could be done to educate traditional and non-traditional students with that large of a scholarship pot.

Some have pointed out the tax cuts currently under debate in the State Legislature won’t bring much relief to average Arkansans, but would be a windfall for some of our wealthier citizens. If so, then let’s think bigger than just a tax cut that most folks won’t even know occurred.

We all know a degree from a 2-year or 4-year school dramatically increases the salary potential of the degree-holder. Studies show the cliche is true, the more you learn, the more you earn. Higher salaries generally mean a larger tax base, so expanding the scholarship money is an investment for the long-term.

Part of Arkansas’s problem in attracting new industries to our state is that much of our workforce often lacks the education these potential employers need to create and grow their companies.

We have an opportunity to invest in our workforce, reaping dividends that could change the face of Arkansas.

I wish State Legislators would think about the next twenty years and what could be done now to set our state on a course that benefits us all.

Unfortunately, the cynic in me believes this Legislature will likely let the opportunity pass and just give out tax cuts skewed to the wealthy.

Too bad, we coulda been a contender.