Author: Talk Business

Talk Business

by Talk Business - March 27, 2011 7:00 pm

Brawner: Prison Reform A Good Step; Medicaid Next?

Arkansas News Bureau columnist Steve Brawner compares the state’s efforts to reform prisons with future efforts towards Medicaid.
 
He’s complimentary of the Governor’s efforts to make changes to the state’s prison system and sentencing reforms.
 
The reforms represent a revolutionary idea — actually cutting real government spending instead of nibbling around the edges. Legislators deserve a pat on the back for making the very grown-up decision that the state’s resources are not unlimited and that it shouldn’t spend what it doesn’t have.
 
They’ll need more support when a parolee who would have been in prison under the old system murders someone. When that inevitably happens, those 14 House members and other opponents will have their I-told-you-sos ready, though they still won’t explain where they would have found that $875 million.
 
Brawner wonders if legislators and the Governor can find similar consensus on changes to the state’s Medicaid system, which is about a year and a half away from a major fiscal crisis.
 
Like prison reform, this idea would create a lot of opposition. But unlike prison reform, that opposition would not go away. One in four Arkansans is on Medicaid, and that’s a lot of voters. Medical providers would claim that they already aren’t compensated enough for the care they provide Medicaid patients — and they would have a point.
 
But as with the state’s prison system, Medicaid costs are rising so fast that they’ll drown the budget in red ink. That is, unless somebody does something more than just talk about it.
 
You can read more of Brawner’s thoughts at this link.

by Talk Business - March 26, 2011 7:00 pm

So How Democratic Is Washington County?

One of the primary arguments between those involved in the great "Fayetteville to the Fourth" Congressional redistricting debate is that the map pulls a large number of Democrats – even liberal Democrats – from the Third District into the Fourth.
 
But how Democratic are voters in the Washington County precincts in question?
 
An analysis of 2010 election returns for the 54 Washington County precincts in the "Fayetteville to the Fourth" map sends a mixed signal.
 
Gov. Mike Beebe won handily in the precincts over GOP challenger Jim Keet by a 13,053 to 6,214 margin. Green Party nominee Jim Lendall recorded 609 votes in one of the few areas of the state with a concentration of Green Party voters.
 
That equates to Beebe pulling 66% to Keet’s 31% and Lendall’s 3%. Beebe outperformed his statewide percentage of 64.4% in the Washington County precincts and Keet underperformed his statewide percentage by a small margin, about 2.5% below.
 
Clearly, a sign of some Democratic strength.
 
But Democratic Third District Congressional nominee David Whitaker and incumbent Democratic U.S. Sen. Blanche Lincoln didn’t fare so well in the bastion of Democratic voters, although both did better than their districtwide or statewide performances.
 
GOP Cong. Steve Womack handily defeated Whitaker by a 11,375 to 8,440 margin, or 57% to 43%.  Certainly, the 43% Whitaker received is far better than his 28% district-wide performance, but still a sub-par showing for a Fayetteville resident Democrat.
 
Lincoln only pulled 42% of the vote – 8,359 votes – in her Senate re-election bid against GOP candidate and then-3rd District Cong. John Boozman, who received 53% or 10,612 votes. Nearby Mayor of Greenland John Gray, the Green Party nominee, scored 681 votes, or 3.4% of the vote, with the rest going to Independent Trevor Drown.
 
For Lincoln, her 42% was an improvement on her statewide 37% performance.
 
Of course, there are some stronger Democratic performing metropolitan regions in the state. For instance, Beebe carried Jefferson County with 78% of the vote and Lincoln garnered 60%. In Pulaski County, Beebe pulled 70%, while Lincoln settled at just over 51%.
 
The numbers in southern Washington County do show that Democrats perform better in these precincts than their districtwide or statewide percentages — not by much in some instances. They also show that Republicans can win the precincts in question by sizable margins.  It may just depend on the candidate.

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

The Latest Salvos In The ‘fayetteville To The Fourth’ Debate (updated)

Dueling facebooks, competing proposals, interactive web sites – the "Fayetteville to the Fourth" map continues to stir the political debate.
 
Also referred to as the "Fayetteville Finger" or the "Pig Trail Gerrymander," there’s not a lot of gray opinion on the Congressional redistricting plan advanced by House Democrats in committee on Wednesday.
 
Today, House State Agencies Chair Rep. Clark Hall (D-Marvell) released a lengthy statement, which you can read here, to discuss the logic that constructed the plan.
 
"There were strong voices in areas of the state such as Fort Smith, Russellville and Harrison that wanted to remain in their historic home in the 3rd Congressional District and there were passionate voices on both sides of the issue in Washington County," Hall said.
 
In truth, there are going to be "passionate voices" in every map drawn. You won’t find many, if any, Democratic partisans to say it on the record, but the map aims to meet the goal of balancing the numbers required by the Census with the goal of drawing Congressional Districts that would lean at least two of the four districts to Democrats and two to Republicans. 
 
Clearly, the Third remains Republican under the "Fayetteville to the Fourth" plan and the Second actually becomes more Republican with the addition of Hot Springs Village. The First District gaining southern Delta counties and losing Baxter County increases its Democratic performance, while the Fourth picks up a swath of would-be Democratic voters.
 
The two political parties have sparred all week over the issue. On Friday, the bill was not run on the House floor. Speaker Robert Moore conceded that the votes needed were not firmed up, but Talk Business sources indicated that talks over the weekend could garner House votes and possibly find a compromise with Senate members, who have yet to take up a plan.
 
One source involved in the negotiations said the House plan "won’t change much" implying that the Washington County shift to the Fourth and the alignment of Southeastern Arkansas counties are likely to remain intact. Baxter County could be a negotiating point.
 
Also on Friday, the Arkansas GOP launched a web site and Facebook page to highlight the “raw partisan politics," according to state GOP chairman Doyle Webb.
 
Democratic Party chairman Will Bond stated earlier in the week that Republicans were being partisan. “The plans that Republican lawmakers have put forward are incumbent protection plans. Republicans have attempted to politicize the process by making the maps only about their incumbent office holders,” he said.
 
Interestingly, a Facebook page has been started by supporters of the plan in the Fayetteville area. Steve Smith, a former chief of staff to then-Gov. Bill Clinton and husband of former Democratic State Rep. Lindsley Smith, is the organizer.
 
"We support the common good and common sense of the plan that moves Arkansas’s 4th Congressional District boundaries to include Fayetteville," the Facebook page says. 
 
"We can have that advantage of twice the representation for Northwest Arkansas if we are smart enough to take it: double the clout and double the muster representing us in Washington for the next decade. We just cannot let partisans or those averse to change mess it up."
 
UPDATE: And the e-mail and Facebook exchanges continue.
 
Late Friday, freshman Rep. Jon Hubbard (R-Jonesboro) responded to Rep. Hall’s letter released earlier by e-mail.
 
Hubbard accused Hall of "playground bullying tactics" in the operation of the State Agencies Committee during redistricting and he clearly disagrees with the "Fayetteville to the Fourth" plan.
 
"Your map is not only a terrible option, but a blatant attempt to circumvent the 2012 and future Congressional elections in this state. This is a perfect example of the dirty political games that have become the norm in AR politics," said Hubbard’s e-mail.
 
"Hopefully one of these days we will elect people to the Legislature who realize and understand that the public is getting sick and tired of the same old dirty political games that have been played far too long. If this happens, maybe we will finally come to the realization that our purpose for being here is to represent the ‘Will of the People’, and not to protect the power of a certain political party," Hubbard added.
 
You can read his full comments here.
 
Also, State Sen. Sue Madison (D-Fayetteville), who has been sharply criticized by her local chamber president, former Arkansas Attorney General Steve Clark, countered Clark’s claims that Madison could single-handedly stop the controversial redistricting plan. She also responded on her Facebook page to his charge that she was not representing her district.
 
"If it was so important to Mr. Clark that I attend this meeting, then why didn’t he contact me and ask me to attend? He has yet to contact me to discuss ANY issues during this entire legislative session," said Madison, noting she was running bills in other committees.
 
"I also take great offense that Mr. Clark has publicly accused me of ignoring my constituents and forgetting the people of Fayetteville. This couldn’t be farther from the truth," she added.
 
You can read all of Madison’s complete remarks here.
 

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

State Implementation Of Health Care Fails In Committee

House Insurance and Commerce committee members failed to pass a bill to allow Arkansas control of federal health care reform despite amendments to mollify opponents’ concerns.
 
On a 10-7 roll call vote, HB 2138 by Rep. Fred Allen (D-Little Rock) failed. It needed 11 votes to pass the committee. The vote split along party lines with Rep. Keith Ingram (D-West Memphis) being the only present member to abstain. Rep. Jonathan Barnett (R-Siloam Springs) and Rep. Bobby Pierce (D-Sheridan) were not in attendance.
 
Ingram told Talk Business after the vote that he "wasn’t prepared to vote on it" today.
 
HB 2138 outlines how Arkansas regulators would structure rate reviews and create insurance exchanges required by the new federal health care law. State officials contend they are under a Jan. 2013 deadline to show progress towards implementing aspects of the new law and they need regulatory authority meet that date. Without state control, they argue that federal administrators will set Arkansas’ health exchange and rate review rules.
 
Arkansas officials have obtained about $2 million in federal grants for planning purposes.
 
Opponents of the measure have argued that the state can wait until the federal courts rule on the constitutionality of the health care law before moving further forward.
 
Two amendments added to the bill this week included a provision to halt all planning on the state’s health care implementation if the Supreme Court declares the federal law unconstitutional. A second amendment delayed any future spending beyond current grant money until November 15, 2011 or "unless approved by all appropriate legislative bodies." It still allowed the state to pursue future federal funding.
 
Arkansas Insurance Commissioner Jay Bradford, who has advocated for state control, said 80% of the rules and regulations to implement health care reform have not been promulgated at the federal level. He wanted regulatory authority through the Insurance Commission to be able to adapt.
 
"We all know that there are going to be some dramatic changes at the federal level," Bradford said. "That’s why we wanted to try to give us flexibility."
 
Bradford said "at least 45 states" have accepted planning grant money like Arkansas. 
 
The bill’s defeat will not stop the implementation of federal health care reform in Arkansas, Bradford said. He contends that the federal government will now dictate Arkansas’ rules unless the bill is resurrected.
 
"It would appear that the will of the state legislature is for the federal government to control Arkansans’ health care," he said after the meeting.
 
Opponents of the bill and federal health care reform in attendance at today’s meeting cheered the vote.
 
Teresa Oelke with Americans for Prosperity’s Arkansas chapter disagreed with Bradford’s assessment and said there is still time for the state implementation to be considered in interim study.
 
"As long as the state shows progress towards an exchange – and we have time to do that – it doesn’t have to be rushed through. We should look at it this summer and have input from a diverse number of people," she argued

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

Arkansas’ February Unemployment Rate Unchanged

Arkansas’ February unemployment rate remained unchanged at 7.8% from January. One year ago, Arkansas’ jobless rate was 8%.
 
The U.S. unemployment rate fell one-tenth of a point to 8.9%.
 
Arkansas’ nonfarm payroll jobs increased 8,400 in February to total 1,161,000.
 
Arkansas Dept. of Workforce Services Communications Director Kimberly Friedman said, “Over the year, the number of employed Arkansans rose 15,800. This expansion is partly related to increased employment in service-providing industries.” 
 
GAINERS & LOSERS
The largest monthly gain occurred in professional and business services, up 4,700 jobs for the month. Most of the increase was related to additions at employment agencies and seasonal gains in accounting and bookkeeping services.  
 
The government sector added 4,000 jobs, as public school employment returned to normal after the winter break.  
 
The largest decline occurred in manufacturing, down 1,400 workers, with losses in both nondurable and durable goods manufacturing. Jobs in construction fell by 1,100.

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

Malvern Company Picked For $100 Million Wind Transmission Project

 Clean Line Energy announced an agreement today in which the company will purchase cable manufactured at General Cable’s Malvern, Arkansas, facility for its Plains & Eastern Clean Line. The transmission line will run from the Oklahoma panhandle through Arkansas to Tennessee.

 
Clean Line President Michael Skelly and General Cable North America President Gregory J. Lampert announced the signing of a memorandum of understanding during a Thursday morning news conference at The Peabody Little Rock.
 
Clean Line, based in Houston, Texas, will deliver wind energy produced in western Oklahoma, southwest Kansas and the Texas panhandle to consumers across the Mid-South and the Southeast regions through its Plains & Eastern Clean Line transmission project.
 
Noting Arkansas’ manufacturing role in the wind energy business, which includes LM Wind Power, Nordex and a forthcoming Mitsubishi plant, economic officials welcomed the Clean Line project’s Arkansas connection.
 
"The Plains & Eastern Clean Line brings economic growth and new jobs for Arkansans," said Maria Haley, Executive Director of the Arkansas Economic Development Commission. "I am pleased to see Clean Line and General Cable partnering to stimulate the manufacturing industry in Arkansas through new opportunities for wind energy in the region."
 
General Cable’s Malvern plant has 330,000 square feet of manufacturing and warehouse space on an 80-acre site. The plant originally was opened in 1967 to manufacture high-voltage bare aluminum overhead conductors and was expanded in 1969 to produce low-voltage and medium-voltage insulated cables. The plant currently has 152 employees. 
 
The supply order for the Plains & Eastern Clean Line could be worth $100 million or more depending on commodity prices. Construction is expected to begin in 2013 and continue over the next few years. All told, as much as 25 million conductor feet of cabling lines may be made to serve the order.
 
Clean Line estimates that property taxes on the transmission lines will generate millions of dollars annually in Arkansas. Property taxes for utility infrastructure in Arkansas are assessed by the Public Service Commission and will be distributed to counties where the line is routed. The route has not been finalized yet.
 
"Our alliance with General Cable is a clear indication of the many benefits that Arkansas will realize as a result of the Plains & Eastern Clean Line," said Clean Line President Michael Skelly. "This marks our first preferred vendor agreement and we are very glad and proud to commence a relationship with General Cable."
 
"We look forward to continuing to create opportunities for more renewable energy and working with Arkansas authorities and state leaders as the project evolves," Skelly added.

 

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

Inflation Threat Looms Over Arkansas, U.s. Economy

As Arkansas’ economy begins to regain solid footing following the longest downturn since the Great Depression, Arkansas consumers now have something else to worry about — inflation.
 
Arkansans have to dig deeper into their pockets for everything from coffee, ketchup and peanut butter to running shoes, baby diapers and toilet paper. And of course, there is the continuing upward march toward $4 a gallon for regular unleaded at the pump.
 
On Thursday (Mar. 24), the U.S. Bureau of Labor Statistics (BLS) reported that consumer prices for the month of February 2011 were up 2.11% on a year-over-year basis compared with February 2010.
 
FED PERSPECTIVE
February’s year-over-year increase of 2.11% was up 29% from January’s year-over-year increase of 1.63% and is now above the Federal Reserve’s informal inflation target of 1.5% to 2%.
 
Despite those numbers, Federal Reserve Chairman Ben Bernanke has openly downplayed inflation concerns, recently saying “the measures of underlying inflation have been subdued.” The Federal Reserve’s Open Market Committee, which sets the nation’s monetary policy, voted to maintain the status quo at it latest meeting.
 
“Information received since the Federal Open Market Committee met in January suggests that the economic recovery is on a firmer footing, and overall conditions in the labor market appear to be improving gradually,” the Fed’s board of governors said in a statement after their March 15 meeting.
 
Specifically, the committee reiterated its existing plan to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The board of governors also voted to maintain the target range for the federal funds rate at zero to 0.25%.
 
“The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate,” said the board, which Bernanke chairs.
 
FOOD, ENERGY PRICE CONCERNS
Greg Kaza, economist for and executive director of the Arkansas Policy Foundation, generally agrees with the Fed’s assessment that the threat of inflation won’t cool the current expansion yet believes rising food and energy prices could be a thorn in the side for the economy.
 
“It’s possible that rising commodity prices could harm the recovery but there is no evidence the economy is entering a recession,” Kaza said. “The coincident indicators (payroll employment, industrial production, real income less transfer payments and wholesale-retail sales) are more important, and they show expansion.”
 
Still, some economy watchers in Arkansas and elsewhere are concerned that the Fed’s monetary policy on underlying inflation doesn’t fully take into account food and energy prices – every day pocketbook items for most consumers.
 
COMMODITY PRICES
Dr. Michael Pakko, chief economist for Institute for Economic Advancement at the University of Arkansas at Little Rock and the Arkansas economic forecaster, has tracked rising commodity prices for at least a few months now.
 
“The increases are remarkable,” Pakko said, a former staff economist for the Federal Reserve in St. Louis. “The big price increases in food prices began around the middle of last year.”
 
From his analysis of the International Monetary Fund (IMF) data between July 2010 and February 2011, Pakko said wheat prices are up 120%, corn prices have jumped 92% and the overall IMF commodity food price index is up over 40% over the same period.
 
The price spikes are not limited to food commodities either.
 
“Cotton prices have more than doubled. In combination with recent increases in world oil prices, these price hikes pose some significant risks for the U.S. economy,” he said.
 
The chief economist at The Conference Board agrees with Pakko’s analysis, saying the latest data points to an improving economy through the summer. Yet, U.S. consumer confidence still faces “strong headwinds,” said Conference Board economist Ken Goldstein.
 
“Headwinds continue to include a still weak housing market and renewed concerns about the negative consequence of high and rising energy and food prices,” said Goldstein. “The net result is likely to be moderate economic growth with an uptick in inflation. This could potentially trim a few tenths of a percent from GDP growth over the next few quarters.”
 
The recently released Arkansas Consumer Confidence Quarterly Report showed that 41% of Arkansans polled in the survey indicated they would be spending more money on consumer goods in the next 6 months – either a sign of inflation anticipation or a prediction that expected needs would force increased spending.
 
FUTURE PRICE HIKES
Meanwhile, the list of food and consumer goods companies planning to hike prices continues to grow. Nike, Starbucks, Kraft Foods, Kimberly Clark and Tyson Foods have all recently announced price hikes.
 
Pakko said those price increases are concentrated in specific commodities and have not spread to the broader economy.
 
“In each case, there is typically a story (or stories) about idiosyncratic supply and demand conditions that are responsible for the price increases” he said. “Taken as a whole, however, they are likely to have a significant impact on the cost of households’ typical consumption bundles.”
 
On the other hand, Pakko said the rise in commodity prices have not fully benefitted rice, cotton and other agriculture producers in Arkansas. Beef producers are seeing somewhat better conditions with prices up nearly 27%, he said.
 
Still, the Arkansas economist expressed some concerns that rising commodity price increases could be a precursor of a more general surge in inflation.
 
“If you ask Federal Reserve officials about inflationary concerns regarding rising commodity prices, they are likely to mention low resource utilization and ‘well-anchored’ inflation expectations as factors that are acting to prevent an outbreak of general inflation,” Pakko said. “But with the economy recovering, with households facing ever more evident price increases, and the Fed continuing to focus on employment instead of inflation, I see an outbreak of inflation as a very real threat to the U.S. economy.”
 
Wesley Brown is the author of this article. He can be reached by e-mail at [email protected].

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

Winter Storms Hurt Trucking Firms In February

Freight tonnage hauled by American trucking companies during the first two months of 2011 is up 5.9%, despite a 2.9% dip in February’s Truck Tonnage Index.

 

The American Trucking Associations’ For-Hire Truck Tonnage Index decreased 2.9% in February after increasing a revised 3.5% in January 2011. In January, the index equaled 116.6. During December 2010 and January 2011, the tonnage index jumped a total of 6.1%.

 

Compared with February 2010, tonnage climbed 4.2%, although this was smaller than January’s 7.6% year-over-year increase. Through the first two months of the year, tonnage is up 5.9% compared with the same two months last year.

 

For all of 2010, tonnage was up 5.7% compared with 2009. In 2009, the index plunged 8.7%.

 

Continued relative gains in the closely watched trucking sector report are good news for Fort Smith-based Arkansas Best Corp. and Van Buren-based USA Truck Inc. The two trucking companies that employ hundreds in the Fort Smith region and thousands nationwide have struggled financially during a freight recession that began in late 2006.

 

ATA Chief Economist Bob Costello said winter storms, not economic factors, in February probably reduced the index. He also said anecdotal reports from trucking companies are “very encouraging.”

 

“Tonnage is not going to increase every month and in general I’m very pleased with freight volumes early this year,” Costello noted in the ATA statement. “I’m hearing a significant amount of positive news from fleets and that the largest concern continues to be the price of diesel fuel, not freight levels.”

 

According to the ATA, trucking serves as a barometer of the U.S. economy, representing nearly 68% of tonnage carried in 2008 by all modes of domestic freight transportation, including manufactured and retail goods.

 

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

Road Tax Votes Split Conservatives

Measures to advance two potential road proposals drew bipartisan support and conservative condemnation on Thursday.

HJR 1001 by Rep. Jonathan Barnett (R-Siloam Springs) would allow voters to decide if a half-cent sales tax for four-lane highways should be increased. The 10-year, $1.8 billion proposal would be voted on in the November 2012 general election.

Barnett’s constitutional referral passed the full House on a 62-25 margin. Eleven House members did not vote and one member voted present. Twenty-three of the 25 no votes were Republican; however, 13 Republicans also supported the proposal. The proposed constitutional amendment must still pass through the State Senate.
 
HB 1902 by House Speaker Robert Moore (D-Arkansas City) had a roller coaster ride in the Senate. The bill, which controversially passed out of committee earlier in the week only to be re-referred, was amended in committee on Thursday.
 
HB 1902 would call for an election to allow voters to decide whether or not to increase a 5-cent diesel fuel tax. The proposal is supported by the state trucking association and would raise about $1.1 billion for interstate construction and repair, if approved by voters.  Speaker Moore has touted his proposal and Barnett’s as a package for improving state highways.
 
Senate GOP amendments were added to Moore’s bill to limit the number of potential special election attempts to one and to provide an exemption for agricultural vehicles. That allowed HB 1902 to narrowly pass out of the Senate Transportation Committee, which is dominated by Republicans 5 to 3.
 
The full Senate chose to handle the bill later in the day and it passed with no votes to spare 18-12. Despite Republican amendments being added and the bill passing out of the GOP-dominated committee, no Republicans supported it on the Senate floor and at least one member from the committee who added an amendment, Sen. Bruce Holland (R-Greenwood), spoke against it.
 
In effect, the GOP members who could have killed it in committee, allowed it to escape. HB 1902 must return to the House to concur the Senate amendments, so another fight may still await.
 
The votes and actions by Republican legislators resulted in backlash from members of conservative groups who criticized the votes cast as supporting tax increases.
 
Americans for Prosperity’s Arkansas chapter followed the road tax debate on its Twitter account. The group organizes grassroots leaders and citizens "in the name of limited government and free markets."  It has been a vocal opponent of tax increases.  AFP posted a "tweet" critical of Sen. Holland’s actions.
 
Flip flop of the day: Senator Bruce Holland. Voting FOR diesel tax increase and now speaking against it
 
Conservative radio talk show host Dave Elswick of KARN-102.9 FM has advocated a number of Republican causes in the session, including lower taxes and less government regulation. He opened two threads on his Facebook page that drew a number of heated responses. The posts read:
 
State Rep Rice says he like to b speaker. After his vote 4 taxes 2day, I say NO. How bout other conservatives. What say u?
 
It is time to seperate the wheat from the chaff. The REAL conservatives do not vote 2.8 Billion n taxes forward.
 
Conservative blogger Jason Tolbert with our content partner, The Tolbert Report, also raised the issue of Rice’s vote.
 
"Among the Republicans voting for the measure was Rep. Terry Rice (R-Waldron) who has indicated he plans to run for Speaker of the House next year. Could this vote help him get Democrat members votes or hurt his support within his own caucus?" Tolbert asked.
 
You can read more at this link.

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

Senator Attempts To Halt Federal Health Care Spending

State Sen. Jason Rapert (R-Bigelow) made an effort to stop state expenditures of federal health care money in Jt. Budget Committee this morning.
 
Rapert offered an amendment to HB 1226 which would create a separate account for all federal money received by the state to implement health care reform. Rapert’s amendment also stated that the state "shall not" spend any money for the purpose of implementing the new federal health care law.
 
Rapert argued that the state had 21 months to fully enact aspects of health care reform and that the state should wait until the federal courts make a final ruling on the issue.
 
State Sens. Joyce Elliott (D-Little Rock) and Linda Chesterfield (D-Little Rock) questioned a halt to the spending. Rep. Buddy Lovell (D-Marked Tree) referred to House Insurance and Commerce Committee testimony on Wednesday that indicated the state could not wait 21 months to move forward with health insurance exchanges and other aspects of the federal law.
 
The amendment failed on a voice vote. Republican members called for a roll call vote, but the motion to amend only received 8 votes on the 56-member budget panel.
 
After the roll call, Rapert released his hold on the Insurance Department budget.

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

Legal Wrangling On Redistricting Begins

With only one plan approved by a House committee, partisan exchanges are already being fired to stake out legal positions on an issue of Congressional redistricting.
 
Yesterday’s passage of the "Fayetteville to the Fourth" plan by Reps. Clark Hall (D-Marvell) and Eddie Cheatham (D-Crossett) quickly drew the ire of the Arkansas GOP.
 
Chairman Doyle Webb issued a statement after the vote accusing Democrats of playing partisan politics.
 
“The pig trail gerrymander is the State Democratic Party’s desperate attempt to hold on to power in the face of a resounding defeat at the polls last November. The Democratic Party is using Washington-style tactics and parliamentary ploys to reverse the will of Arkansas voters who chose to have a majority Republican congressional delegation," Webb said in the release.
 
“State Democrats have no desire to create an open and honest dialogue with the people of Arkansas concerning the redistricting process. The Democratic Party’s abuse of power to protect their own self interests reeks of partisan machine politics. The Republican Party had hoped the Legislature could complete this critical process in a bi-partisan manner, but if litigation is necessary we are prepared to file suit to protect the interests of all Arkansans,” Webb said.
 
That prompted a response from Democratic Party of Arkansas Chairman Will Bond, who denounced the Republican Party’s threat of a lawsuit over redistricting as merely a political ploy.
 
“It is ironic that the first thing the Republican party screams about redistricting is the threat of a lawsuit instead of focusing on the merits of ‘one person, one vote’ and instead of explaining why Republican plans, particularly the one in the Senate, has significant variances in population and seeks to destroy the Delta region,” said Bond.
 
“The plans that Republican lawmakers have put forward are incumbent protection plans. Republicans have attempted to politicize the process by making the maps only about their incumbent office holders,” he added.
 
Bond said that Hall’s and Cheatham’s plan was the the closest to "one person, one vote," a threshold needed to avoid certain legal defeat. All of the plans presented, Democratic and Republican had district variances of less than one percent.
 
Bond added, “Redistricting is a difficult process, filled with tough choices. Republican threats of lawsuits are only meant to try improve some political polling numbers for Republican officeholders and does nothing to help the people of Arkansas or the policy debate.”
 
Many eyes have been focused on how Attorney General Dustin McDaniel will handle the threat of litigation. The AG will have to defend the final Congressional District map approved by the legislature.
 
Republicans were critical of McDaniel based on comments made by Rep. Hall in committee on Wednesday. When asked by a committee member, Hall claimed McDaniel would defend his plan if it became law.
 
That brought a stern rebuke from state GOP spokeswoman Katherine Vasilos.
 
“It’s shameful that Attorney General Dustin McDaniel would rush to defend an unfair, partisan attempt for his party to retain power. While he opposed countless bills this legislative session under the threat of a lawsuit, Attorney General McDaniel has no problem defending the selfish interests of the State Democratic Party," she said.
 
McDaniel declared his formal position today, "I must assume that any congressional redistricting plan approved by the General Assembly will be challenged in court. Wednesday was the first time I had seen the plans presented to the House State Agencies Committee.
 
"Our office has repeatedly reminded legislators that population equality is the main standard that must be met in court. It is important to note that I disagree with any assertion that a 1 percent population variance among districts is acceptable. In my opinion, 1 percent will not cut it. Currently, at least 25 states have deviations of less than 10 people. I will continue to warn the General Assembly of its litigation risks.
 
"Assuming populations are equal, the fights appear to be political and are between the political parties, legislators and members of Congress. I reiterate my duty to defend any Act of the General Assembly, whether I agree with it or not," McDaniel said.
 
Concerns over the "Fayetteville to the Fourth" plan may be short-lived. Republicans are attempting to persuade Democratic members of the House to not support the plan. With a small majority margin, it wouldn’t take much to pull support below the necessary 50%, as we’ve previously reported.
 
Meanwhile, in the State Senate, a compromise plan between Republicans and Democrats is being discussed. Earlier today, State Sen. Johnny Key (R-Mountain Home) and State Sen. Robert Thompson (D-Paragould) were seen working on map details. Key confirmed later to Talk Business that discussions for a bipartisan compromise on the Senate’s end were taking place.  The earliest legislation might be presented in the Senate State Agencies Committee is Monday.  Rep. Hall has said that he may run his "Fayetteville to the Fourth" plan in the full House as early as Friday.

by Talk Business - March 22, 2011 7:00 pm

Ua Hires Mike Anderson As Head Basketball Coach

Just 10 days after John Pelphrey’s dismissal, the University of Arkansas has announced a replacement for its head men’s basketball coach, former Nolan Richardson assistant and University of Missouri coach Mike Anderson.

UA Vice Chancellor and Director of Athletics Jeff Long made the announcement on Wednesday:

In nine seasons as a collegiate head coach at the University of Alabama-Birmingham (UAB) and most recently at the University of Missouri, Anderson has amassed a career record of 200-98, earning 20 wins in a season seven times and leading his teams to the NCAA Tournament in six of his nine seasons as a head coach.

“We are extremely excited to welcome home Mike Anderson to the University of Arkansas as our new head men’s basketball coach,” Long said. “Mike is one of the outstanding head coaches in college basketball. His teams play an exciting brand of basketball that has already proven successful at both UAB and Missouri.

“Under Mike’s leadership, I am confident the Razorbacks will be successful in the future on and off the court. The decision to hire Mike Anderson as head coach is based on my firm belief that he is the right person to lead the Razorback program today and in the years to come,” Long added.

“It is a tremendous honor to be named the head men’s basketball coach at the University of Arkansas,” Anderson said. “I want to thank Chancellor (Dave) Gearhart and Athletic Director Jeff Long for this opportunity to lead the Razorback Basketball program. I am extremely excited to once again be a part of this special University and Razorback Athletics. With the continued passionate support of all Razorback fans, I am confident that we will have the opportunity to succeed on and off the court and continue to build on the University of Arkansas’ championship tradition.”

Anderson’s record after his five-year stint at Missouri was a combined 111-56 (.665) and included 13 wins over ranked opponents, four NCAA Tournament victories and a 75-13 record at home.

by Talk Business - March 22, 2011 7:00 pm

Congressional Redistricting: Afterthoughts & The Aftermath

 After Wednesday’s move by Democrats to successfully push their "Fayetteville to the Fourth" Congressional redistricting plan out of the House State Agencies Committee, there are a variety of questions and comments to pull into a cohesive post.

 
First, there were strong reactions from GOP leaders.
 
Using phrases like "gerrymander," "abuse of power" and "partisan machine politics," Arkansas GOP chairman Doyle Webb said he’s prepared to file a lawsuit to challenge the map if it passes the legislature.
 
“The Republican Party had hoped the Legislature could complete this critical process in a bi-partisan manner, but if litigation is necessary we are prepared to file suit to protect the interests of all Arkansans,” Webb said.
 
As a side note of commentary, we would suggest that whatever plan is passed will be challenged in court by some interest group not satisfied with the outcome. The legal parameters of these cases is a post for another day.
 
Third District Cong. Steve Womack (R-Rogers) called the "Fayetteville to the Fourth" plan "absurd," even though he stands to gain politically from the redrawn lines.
 
In an interview with our content partner, The City Wire, Womack said, “With this plan, we have a very low seed that is apparently still in the game against several top seed teams. You can say that this redefines March madness."
 
Womack said there are many good plans that have been floated, and he has been committed to staying out of the discussion — with one exception.
 
“I’ve been on record all along during this as saying that all I will do is cry foul against something that is silly,” Womack explained.
 
Fourth District Cong. Mike Ross (D-Prescott) chimed in on the redistricting plan and process on Thursday morning, but took a pretty neutral stance:
 
“By law, it is the state legislature that sets the congressional district boundaries for our state and I will not comment on any redistricting bill out of respect for the process. The Fourth Congressional District doesn’t belong to me, but rather it belongs to the people of Arkansas and I will respect the decision made by our state legislators. My job is to be an effective representative and voice for the people of Arkansas’s  Fourth Congressional District, something I’ve done and will continue to do regardless of its boundaries,” Ross said.
 
*****
Attention now turns to the House floor. Rep. Clark Hall (D-Marvell), chair of the House State Agencies Committee, says he hopes to run his redistricting bill on Friday. Democrats have a 54-45 advantage over Republicans in the House, so they have the power to ride roughshod over the GOP.
 
Do they have the political will and can they hold their votes?
 
The Legislative Black Caucus leader, Rep. Tracy Steele (D-Little Rock), says of the caucus – "we’re on board." 
 
Republicans have to peel 4 votes off the Democratic rolls and here are some likely targets. 
 
In the House committee, Rep. John Vines (D-Hot Springs) was silent during the roll call vote suggesting that he may either abstain or be a potential "no" vote. Of course, Democrats could hold him, too.
 
Rep. Uvalde Lindsey (D-Fayetteville) was apparently prepared to testify against Hall’s bill in committee before the vote. He says he is "a firm no" and that he isn’t changing his mind.
 
Rep. Greg Leding (D-Fayetteville) is considered a potential peel-off for the GOP on this vote, but Leding tells Talk Business that "he’s thinking about it."
 
"We fit geographically better in the Third, but everybody has a connection to Fayetteville, and we’ll make it work wherever we are. Fayetteville will be just fine," Leding said in a text message Wednesday night.
 
Assuming all 3 of those votes could be persuaded, a fourth unknown Democratic vote would have to step forward. 
 
House Speaker Robert Moore (D-Arkansas City), who usually doesn’t cast a vote while presiding, tells Talk Business he would cast the decisive 51st vote if necessary.
 
"The plan that the committee came out of here with today, I’ve obviously looked at it," said Speaker Moore. "I’m content that this is a good proposal."
 
House Minority Leader John Burris (R-Harrison) admits that the votes are in the Democrats’ favor. 
 
"It’s kind of hard to have a strategy. They have a strategy and that kind of dictates ours," he said.
 
When asked if he thought the Democrats could hold at least 51 votes in the House, Burris added, "I think it’s going to be tough… I think people know a bad map when they see it and I think there’s certainly conversations going on with members now that have a lot of concerns about it – across the board and not even confined to the Third District."
 
Burris also contends that if Hall’s plan does pass the House, he thinks the 4-4 partisan split on the Senate State Agencies Committee will make for a tough hurdle to clear. He suggested that lawmakers may see more debate in the Senate because of the structure of the committee.
 
*****
So let’s turn to the State Senate, where Democrats enjoy a 20-15 advantage over their GOP counterparts. A minimum of 18 votes will be required to pass a redistricting plan, so Democrats can only afford to lose two votes to hold the "Fayetteville to the Fourth" plan intact.
 
Sen. Sue Madison (D-Fayetteville) chairs the Senate State Agencies Committee. Madison tells Talk Business that she’s not taking a public position in order to ensure a fair hearing on all maps in her Senate committee.
 
However, Madison said she’s "open-minded" on the proposal and has heard fairly equally from both sides for and against the "Fayetteville to the Fourth" plan. 
 
"I do get the sense that there are more people in Fayetteville who are giving this a second look," said Madison. "I know that the Fourth District is expected to continue losing population and the Fayetteville area is expected to continue growing population, so I think in some ways this could mitigate this disparity that the Fourth has population-wise."
 
A potential swing vote in the Senate: Sen. Larry Teague (D-Nashville). He’s running for re-election next year in what will be a redrawn Senate district and he may be a viable candidate for the Senate Pro Temp position.
 
He says he’s "not fond" of the House plan, but is tight-lipped on what he might support.
 
Today, State Sen. Johnny Key (R-Mountain Home) intends to run his plan in Senate State Agencies this morning.
 
*****
What’s really at the core of the House plan, Sen. Johnny Key’s (R-Mountain Home) plan, and others are whether or not Congressional Districts will be redrawn in a way that mathematically suggests Republicans will have a 3-to-1 advantage over Democrats or a 2-to-2 draw.
 
The "Fayetteville to the Fourth" plan gives Democrats an advantage in the First and Fourth Districts.  By adding southeast Arkansas counties to and removing Baxter County from the First, Democrats pick up voter performance there.
 
Likewise the Fourth District picks up the rich Democratic votes in Washington County (and some in Johnson and Franklin) to add to their base. Some question if there are too many liberal Democratic votes in Fayetteville to allow it to control a Democratic primary – a real challenge for center-right Democratic Cong. Mike Ross in the next cycle.
 
Clearly, the Third District remains solidly Republican with the Baxter County gain and the loss of Democratic votes from Washington County.
 
Of interest, the changes in the Second District. Under the 2-2 scenario, Democrats have effectively conceded the Second to Republican Cong. Tim Griffin by adding Hot Springs Village to the Congressional District and not shifting the large GOP vote in the city of Searcy into the First.
 
Key’s plan gives Republicans advantages in 3 Districts – the First, Second and Third, but leaves the Fourth in more favorable Democratic shape.
 
*****
A final thought: a few weeks ago, Talk Business executive editor Roby Brock predicted this would be a very partisan vote. That’s what happens in Congressional redistricting, particularly in other states.
 
 
You could see a near-straight party line vote on redistricting if the Democrats decide to muscle a plan to their advantage through. Despite cries of partisanship, if the tables were turned, you can bet your bottom dollar that the GOP would build a plan in their favor and keep their rank-and-file in order. The Democrats may do the same.
 
Regardless of the outcome, there are sure to be fireworks and it will likely be the most politically charged debate of the session. Arkansas’ Congressional Districts have changed dramatically during the last 70 years, but not so much in the last 20 years. It appears that the 2011 realignment will be one for the ages.

 

by Talk Business - March 22, 2011 7:00 pm

Legislators Question Need To Move Now On Health Care Laws

Arkansas’ efforts to write state laws and regulations to implement federal health care reform was put on hold today. Members of the House Insurance and Commerce Committee delayed a vote until Friday on HB 2138 by Rep. Fred Allen (D-Little Rock). The bill outlines a number of details of how the state would prepare for federal health care’s enactment, assuming it survives court challenges and potential Congressional changes.