Author: Talk Business

by Talk Business - September 25, 2011 7:00 pm

Tyler Promotes Campaign Event Coordinated With Committee Meeting

I noticed the other day that this year the legislature has not scheduled a "hogville meeting" as they have in the past.  Normally, they have at least a couple weekends each fall where they schedule committee meetings in northwest Arkansas the same weekend as Razorback games to allow legislators to collect per diem for the trip. Not so this year – so good job.

However, it seems another practice is going on instead.  At least one legislator is planning a campaign event fundraiser in conjunction with a committee meeting in her hometown.  Rep. Linda Tyler (D-Conway) sent this email out to legislators last week:

Good morning,

by Talk Business - September 25, 2011 7:00 pm

Lawsuit Filed Over Legislative Reimbursements

My column for the Arkansas News Bureau on Sunday took a look at legislative pay and expense reimbursements.  I made the point that legislators make an extremely low salary of $15,869 — well below the per capita income level in Arkansas of $33,150.  At the same time, I pointed out that legislators compensate for this with a very generous legislative reimbursement system, many times higher than their salaries.  My solution is get rid of the dishonest legislative reimbursement system and pay legislators something closer to the average Arkansas salary level.

To my surprise, the next day I read that the Public Law Center – an outfit Arkansas Times blogger-in-chief Max Brantley is a part of – has filed a lawsuit challenging the reimbursements. From Brantley…

The lawsuit names one Republican, Rep. Ann Clemmer, and one Democrat, Sen. Jerry Taylor, for the nearly universal legislative practice of submitting unitemized monthly expense claims, often in the name of personal "consulting businesses." As most legislators will admit, many rely on these payments as pay supplements that they say make public service affordable.

My question here is if this is a "nearly universal legislative practice," how did they decide upon these 2 out of 135 legislators?

"The suit named a representative and a senator and a Democrat and a Republican whose expense filings fit the pattern," explained Brantley. "We expect a successful lawsuit will apply to all legislators. Naming all as defendants would have increased discovery and pre-trial costs exponentially."

I would note that the Democrat is Sen. Taylor, a term-limited legislator who is arguably the most conservative Democrat in the state (he has a "Repeal ObamaCare" sticker displayed prominently on his Facebook page.)  Rep. Clemmer, on the other hand, is one of rising leaders within the Republican Party and is up for re-election in 2012 and probably heading for higher office.

Michael V. Lauro Jr., president of the Public Law Center, said in a press release that "the purpose of the lawsuit was not to deprive legislators of income, but to require the state to obey the Constitution and pay them straightforwardly. Legislators may and probably do deserve to be paid more for the work and for the sacrifices many of them make in their private businesses to serve, but it should be done transparently, by making the annual cost-of-living adjustments in their official salaries, seeking higher salary authorizations through a constitutional amendment or actually documenting their legitimate expenses. Legislators have sometimes foregone the annual cost-of-living adjustments with claims that they were being frugal with the taxpayers’ money while quietly drawing fatter expense checks."

Don’t get me wrong, the system is dishonest and legislators can certainly do as Sen. David Johnson has done and opt to not participate. But it is not an Ann Clemmer problem. It is a problem with the entire pay and reimbursement structure.  It is so institutionalized that the system is basically taught at orientation.

It needs to change. For this reason, I hope this lawsuit is not the selective application for political purpose.

by Talk Business - September 25, 2011 7:00 pm

Arkansas Republicans Raise Filing Fees

The Republican Party of Arkansas executive committee voted last week to raise the filing fees for candidates for the 2012 election cycle.

• State Representative fees doubled from $1,500 in 2010 to $3,000 in 2012.
• State Senate fees increased from $4,000 in 2010 to $7,500 in 2012.
• Congressional filing fees increased from $7,500 in 2010 to $12,500 in 2012.

House Republican Minority Leader John Burris commented that he felt the increases would not hurt the party’s ability to still recruit top-notch candidates.

"The Democrats have never had any trouble recruiting and I don’t think we will either," said Burris. "You can pay $3,000 to run with Barack Obama or you can pay $3,000 to be on the ticket with the guy who is against Barack Obama."

by Talk Business - September 25, 2011 7:00 pm

Beebe Via Bradford Asks For Cover On Health Care Grant

Insurance Commissioner Jay Bradford returned to a panel of state legislators today to ask again for some sort of approval on applying for an additional grant for planning state health exchanges.  Bradford met with an informal gathering of legislators last week who asked him to return with a detailed budget as to how that grant would be spent and the amount of the grant.  This week, the meeting was under the organization of the Joint Committee on Advanced Communications and Information Technology; however; it is unclear what authority – if any – this committee has to give the executive branch authority to apply for the grant.

The budget presented to the committee was for a total of $3,793,213.  This is largely made up of $3,349,250 for consultant/contractors with $1.5 million earmarked for a "public education campaign."  Another $315,119 will go to salary expenses of insurance department employees working on the planning for the exchanges and $87,844 for travel and other administrative expenses.

A major point of discussion, particularly with Republican House Leader John Burris and Bradford, was who had authority to authorize the grant.  Burris insisted that the legislature could only express its opinion on the grant, while the sole authority to authorize the grant rests with Gov. Beebe.  However, Bradford insisted that the governor would not move forward without some sort of support from the legislature.

Rep. Mike Patterson (D-Piggott), who chaired the meeting, indicated that he was satisfied with the budget submitted by Bradford and felt they should move forward.  Later, he said this would not take place without "support from both sides."

It was difficult to follow actually who Bradford was appealing to in asking for approval.  Was he asking legislators to call, email, and write letters to the governor expressing their opinion? I asked Burris to clarify exactly whose approval the governor was seeking on the grant proposal – the legislature as a whole, certain committees, or individual legislators.

"I think he would be satisfied with a letter from me," responded Burris. "But this is the governor’s decision, not ours."

Spokesman for the governor’s office, Matt DeCample, tells me that Gov. Beebe feels like the state legislature indicated during the session they are opposed to the exchanges. However, he said Beebe was approached by leaders in the business community, including the state chamber of commerce, and asked to reconsider. But before he proceeds, he wants "some indication from the legislators who were adamant that Rep. Allen’s bill (setting up the state health care exchanges) not pass and held up the insurance commission budget" that they have changed their minds.

The governor’s office did not indicate exactly what they envisioned receiving from the legislature other than "a sturdy sign of conscience" and they particularly wanted to hear this from the House, since that is where the legislation stalled during the session.  DeCample said they were fine with receiving a letter, a group letter, meetings, or even emails from House leaders.

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

Republican Senate Races Round-up

I have gotten several State Senate announcements this week.  I am sure I am still missing some, but let me try to round up the latest….

• Rep. Jon Woods (R-Springdale) announced today that he will seek the district 7 State Senate seat.  This seat is currently held by Sen. Bill Pritchard (R-Elkins) who plans to seek re-election – meaning this one will likely see a primary.  “As a House member, I’ve worked to lower the tax burden on families and businesses, and I’ve supported legislation that encourages job creation and economic growth. That will continue to be my priority in the State Senate,” said Woods in his announcement.
• Former Rep. Jim Henden (R-Gravette) announced via Facebook that he will seek the district 2 State Senate seat currently held by his father who is term-limited. "I am excited about being part of the Republican team that finally captures control of the Arkansas Senate. Republicans will have a tremendous opportunity to move Arkansas forward to a position of national leadership," said Hendren in his announcement.  Rep. Jonathan Barnett (R-Siloam Springs) – of the "Jonathan Barnett Highway" – is also thinking about running.
• Pulaski County JP Jim Sorvillo (R-Little Rock) announced on Wednesday that he plans to run for State Senate district 32. This seat is held by Sen. David Johnson (D-Little Rock) who plans to run for re-election.  Johnson is one of the most ethical (one of the few legislators to take no expense reimbursements) and also one of the most liberal members of the senate (one of three Senators to vote against the Partial-Birth Abortion Ban).
• Cattle farmer and gas company owner Bill Coleman (R-Mountainburg) announced he will seek Senate district 5. “With a lifetime of running a business, I understand how critical the health of our economy is today. Small businesses are the job creators for our economy. We must have a government that encourages the development and growth of small businesses and therefore job creation, not a government that strangles our businesses and stifles job growth with unnecessary regulations and over taxation," said Coleman in his announcement. Incumbent Sen. Ruth Whitaker (R-Cedarville) is term-limited so this seat is open. Term-limited Rep. Bryan King (R-Green Forest) has also announced he will run.  It appears former Rep. Beverly Pyle will not.
• Rumors abound in State Senate district 13 currently held by Sen. Mike Fletcher (D-Hot Springs).  The shape of this district has changed quite a bit and now includes a portion south of Benton in Saline County.  Rep. Kim Hammer (R-Benton) considered the race, but he tells me that he has decided to run for re-election to House district 28 instead.  Some have speculated that term-limited Rep. Johnnie Roebuck (D-Arkadelphia), who owns property in the district, may challenge Fletcher in a primary.  But perhaps the most interesting rumor is that former Rep. Mike Creekmore might switch parties (back to Republican) and run in this district, which now includes his home in Bauxite.  Garland County Republican chairman Alan Clark is also looking at running.
• Rep. Gary Deffenbaugh (R-Van Buren) confirmed with me on Thursday evening that he will not run for State Senate district 9 but instead will run for re-election to House district 79.  Deffenbaugh was believed by many to be conservative Republicans best chance to beat moderate Republican former Rep. Rick Green (RINO-Van Buren.)  The incumbent in this district is Sen. Bruce "Fireball" Holland (R-Greenwood), who has been a consistent conservative vote in the senate but a lead foot behind the wheel making him vulnerable to losing to Green. Term-limited Rep. Tracy Pennartz (D-Fort Smith) also has announced she will seek this seat.
• Rep. Jon Eubanks (R-Paris) announced he is running for re-election to house district 74 meaning he will not run for senate district 6 as once rumored.  This likely means Rep. Gary Stubblefield (R-Branch) will strongly consider running for district 6.  Former Rep. John Paul Wells (D-Paris) – who lost to Sen. Bruce Holland in 2010 when the district was quite different – is seeking this seat as well.

 Who am I missing?  Let me know at [email protected] and be sure to continue to check our list as we keep it updated.

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

The Jonathan Barnett Highway

The Herald Leader in Siloam Springs reports today that a section of U.S. Highway 412 will soon bear the name of their own State Rep. Jonathan Barnett.  Although the Highway Commssion voted to rename this strech in January, he tells the paper that he had no idea of the plans.

“The Highway Commission named that without my knowledge,” Barnett said.

Barnett served as an appointee of Gov. Mike Huckabee on the Highway Commission from January 1999 to January 2009, where he advocated improving this bypass along Highway 412 in his hometown just over the Oklahoma border.  Barnett owns Barnett Construction located on this same stretch of highway.

Barnett was elected to the House of Representative in 2008.  In the previous legislative session, he was the driving force behind the proposal to raise the state sales tax by half a cent to fund highway improvements.  The proposed highway tax increase will appear on the ballot 2012.

However, Barnett’s plans for 2012 are still unclear.  Republican Robin Lundstrum told the Tolbert Report last month that she is strongly considering challenging Barnett in the GOP primary next May.  In addition, Barnett has been mentioned as a possible candidate for the State Senate district where Sen. Kim Hendren is term-limited.  Hendren’s son, Jim Hendren, is also considering running has announced on Facebook he will seek the seat. 

Last month, Barnett told me, "I am keeping all my options open."