Author: Talk Business

by Talk Business - October 24, 2011 7:00 pm

Sen. Hutchinson Buys A Radio Station

KEWI (690 AM), the main radio station in Saline County – will soon be under new ownership as Benton based Saline River Media LLC has filed an application with the Federal Communications Commission to purchase the radio station. The new ownership will take over on November 1st on a lease management agreement pending government approval of the transaction.

The primary owner will be well-known radio executive Grant Merrill of Bryant, but perhaps more interesting is State Sen. Jeremy Hutchinson, R-Little Rock, who is completing his first term representing Saline and Pulaski County in Arkansas District 22.

“We are proud to be bringing a completely local media approach to Saline County. The people of this area need to continue to have a broadcast outlet and we aim to provide them with more local information than they will find anywhere else.” Merrill said. “We’re confident the 107,000 people in this county will be pleased with our product.”

“I am proud to be a part of an organization that will create jobs for our area and be a beacon of community service for its listeners. We’re ready to go to work and continue the long legacy left by Jim and Deegy Landers.” Hutchinson said. “There is a great need for what we are doing here and we will strive to do what is right for our listeners and advertisers.”

Jim Landers is best known as the voice of the Benton Panthers calling their football games for decades. The 75-year old announced this year will be his last, handing over the reins to Shane Knight who currently calls the play-by-play.  Landers worked in sports broadcasting at numerous television stations in Arkansas before purchasing KEWI 16 years ago.

The station will continue to broadcast at its current dial position of 690 AM; however, Saline River Media has also filed to purchase an FM signal that will rebroadcast KEWI twenty four hours a day.

The transaction is expected to close in less than sixty days.

by Talk Business - October 23, 2011 7:00 pm

Study Shows Arkansas Total Debt Over $25 Billion

Today, State Budget Solutions (SBS), a nonprofit organization advocating for fundamental reform of state budgets, released a report showing Arkansas ranking 14th overall in the amount of total state debt and 17th on a per capita basis with a total combined debt of over $25 billion.

Although Arkansas is one of only four states – including Alaska, Montana, and North Dakota – to balance their general budget, the study also factored in pension liabilities and loans in the state’s unemployment trust fund.   Arkansas ranked 15th overall with pension liabilities of over $21.8 billion and 11th overall with an unemployment trust fund liability of $359 million.  Arkansas also carries over $2.7 billion in other debt obligations.

Overall, Arkansas fared better than most other states where the report found that total state debt nationwide presently exceeds $4 trillion.  SBS’s report showed that the states with the largest total deficits included California, New York, Texas, New Jersey, and Illinois, respectively. States that ranked among the lowest deficits included Vermont, North Dakota, South Dakota, Nebraska and Wyoming. Most of these states at the top and bottom of the lists were ranked in the same position in last year’s state budget deficit report.

“These deficit numbers are staggering and should be frightening to the American public. Due to budget gimmicks, many states fail to give an adequate picture of how much trouble they are really in,” said Bob Williams, President of State Budget Solutions. “This report makes it clear that if legislators don’t act immediately and decisively, our country will be facing a budget crisis that we have never seen before.”

Full report ranking can be seen here.

by Talk Business - October 21, 2011 7:00 pm

Madison Defends Hogville Meetings

Sen. Sue Madison, D-Fayetteville, defended the practice of state legislators meeting in northwest Arkansas on the same weekend as Razorback football games.  Yesterday, Rep. James McLean, D-Batesville, criticized the practice.  Madison, who is chair of the committee that called the meeting, explains why she feels the practice is appropriate.

"The purpose is to once again visit the issue of rising textbook expenses and see what has changed from our last meeting," said Madison who calls a meeting every year on gameday weekends in Fayetteville for this purpose. "I want to meet in Fayetteville as that is where the flagship institution is located. I am hopeful faculty and students will attend. Administrators are also invited. The meeting room at the jail is easily accessible and has great parking. If we publicize progress at the flagship institution, other institutions will likely follow."

"Meeting is scheduled for mid-afternoon so legislators can work Friday morning at their other jobs if they need to and still have time to come to our meeting. I also want to check compliance with the act we passed that sets deadlines for adoption of textbooks by faculty as that knowledge is critical for bookstores in determining what they will pay students at buy-back time. It is, after all, the net cost that is important. I was worried Friday afternoon would run late with the textbook price issues and knew members might have other commitments. Hence, the Saturday morning meeting," said Madison in defending why the meeting stretches over two days. "I want as many members to come to this meeting as possibly can and that is why I specifically chose a football game weekend. The meeting last year was well-attended and we have many new members who also need to understand this problem."

Tolbert’s Take

It appears to me that Madison’s motives are pure.  She has championed the issue of finding a way to prevent the rising cost of textbooks.  As someone who has spent over a decade in college having to buy such textbooks, I can sympathize with this issue.

But the carrot Madison is using to attract legislators to the meeting is funded by taxpayers.  Madison is upfront that she plans the meeting to correspond with Razorback games on purpose so that she can attract more legislators to attend and increase the focus on her issue.  This is not a case of a private interest group paying for the legislators’ expenses, but rather the state paying for it.

Perhaps the most objectionable part is stretching the meeting out over two days.  Madison’s explanation is above, but it is obviously a bigger incentive for legislators to get double the per diem for a weekend trip.

It is also quite telling that Madison cannot attract legislators to attend the meeting without the chance to attend a football game on our dime.

by Talk Business - October 20, 2011 7:00 pm

Mclean Raises Concerns Over Hogville Meetings

A relatively routine Arkansas Legislative Council meeting was made much more interesting today when Rep. James McLean, D-Batesville, raised some loud concerns over a couple of upcoming committee meetings in Fayetteville.  The Arkansas Legislative Council Higher Education Subcommittee and the Senate State Agencies Committee both plan to meet at the Washington County Sheriff’s Office in Fayetteville on Friday afternoon on November 4 and Saturday morning on November 5, the same day that Arkansas plays South Carolina in Fayetteville.

"When I came into the legislature three years ago, these meetings were routine, but I thought we had decided to end this practice," McLean told me after the meeting. "It is not right to have a committee meeting in Fayetteville on the morning of a Razorback game…This sort of thing is the reason people don’t trust the legislature."

McLean said he had not spoken to the committee chairmen who had scheduled the meetings and was not sure of the agenda, but said he hopes they decide to cancel at least the Saturday morning meeting.  Both meetings are chaired by Sen. Sue Madison, D-Fayetteville.  I reached out to Madison for comment, but have not yet heard back.

This is not the first time Madison has scheduled gameday meetings in Hogville. In fact, last year I wrote a column on this practice and interviewed Madison about the practice. From my column last year…

“Because the library closes early on Friday we decided to also meet Saturday morning since we might not get finished on Friday,” said Madison. “We are meeting early Saturday morning because there is a football game later in the day. I don’t go to football games, but a lot of people do and traffic can get pretty nasty. I am hoping a lot of legislators are planning to come to the game and will attend these important meetings.”

I am sure many legislators will take her up on this deal. Legislators will be reimbursed a per diem of $116 per day plus reimbursement for mileage. To sweeten the deal, if they attend both the scheduled meeting on Friday and Saturday morning, they get double the per diem. They can make the trip to Northwest Arkansas, attend the meetings on Friday afternoon and Saturday morning, catch the game, and taxpayers will pay them $232 plus mileage.

This is certainly not a new practice. Last year, the Legislature held meetings in Northwest Arkansas on three separate football weekends. According to records from the Arkansas Bureau of Legislative Research, the total cost of having those meetings, including legislative reimbursements and staff travel, was just under $12,000. Legislators received, on average, about $300 for their weekend trip. The highest reimbursement in 2009 went to Sen. Gene Jeffress, D-Louann, who was reimbursed $915.10 to attend two committee meetings on Razorback weekends. The kicker — pun intended — is that he wasn’t a member of either committee. That’s not against legislative rules, but more than a little questionable.

The per day per diem rate this year is $123, meaning a legislator can receive $246 for attending the meeting plus mileage. Sen. Madison tells the AP  that the reason for scheduling the meeting in Fayetteville is so that legislators attending the game will attend the meeting.

UPDATE – It is a noticable oddity that the Senate State Agencies is meeting without a joint meeting of the corresponding House Committee.  This is not by accident.  Apparently after the additional public scuriny on the Hogville meeting practice last year, the House informally decided this was not a good idea.

"The General Assembly should get out of the Capital City from time to time and engage the full population of the State that we all represent. In being consistent with the stated objectives of efficient use of members time and taxpayer dollars, two meeting per committee, within each of the four regions of the state, per calendar year, should be sufficient to accommodate this necessity," said Speaker Robert Moore in a memo sent to House Chairman in June.

by Talk Business - October 20, 2011 7:00 pm

Cain Needs To Clarify His Stance On Abortion

Republican Presidential candidate Herman Cain addressed the issue of abortion on Piers Morgan’s show on CNN Wednesday night. His answer has caused concern from many in the pro-life community and his subsequent response has not yet put the issue to rest.

After first stating he believes "life begins at conception," Morgan asked him specifically about the what he would do if his granddaughter was pregnant as a result of a rape.

"It comes down to it’s not the government’s role or anybody else’s role to make that decision. Secondly, if you look at the statistical incidents, you’re not talking about that big a number. So what I’m saying is it ultimately gets down to a choice that that family or that mother has to make," said Cain. "Not me as president, not some politician, not a bureaucrat. It gets down to that family. And whatever they decide, they decide. I shouldn’t have to tell them what decision to make for such a sensitive issue."

It is difficult to determine if he was talking about abortion only in the case of rape or all abortion in his response, but he continued.

"I can have an opinion on an issue without it being a directive on the nation. The government shouldn’t be trying to tell people everything to do, especially when it comes to social decisions that they need to make," continued Cain.

This answer prompted his opponent Rick Santorum to characterize Cain’s position as a "pro-choice position similar to those held by John Kerry, Barack Obama and many others on the liberal left."  And Santorum’s point has merit.  This answer sounded similar to the so-called "personally opposed to abortion" stance taken by many Democrats who seek to be able to call themselves pro-life, but not favor any governmental restrictions on abortion.

Cain put out a statement via email late yesterday that still leaves me wondering exactly where he stands….

The abortion issue is very serious.  I believe strongly that this is true, and I believe that you do too.