Week 2 Legislative Summary

We're now up to 349 filed bills this legislative session: 218 in the House and 131 in the Senate. It's apparent that many lawmakers are beginning to look towards key budgetary proposals, including foundation and categorical educational funding, which of course, must be funded first. I visited with former Speaker Bill Stovall this morning regarding educational funding issues. I consider Stovall, who is currently serving as an administrative assistant this year to Speaker Petrus, to be a budgetary wizard. Watching Stovall talk about the state budget is like watching Tiger Woods at the driving range. I'm confident we can both satisfy the supreme court's Lake View mandate and provide meaningful tax relief this session while balancing the budget, which is mandatory in Arkansas.

Also this week, we received the governor’s recommended balanced-budget proposal. The two-year, $8.9-billion budget includes considerable increases for public schools, higher education, prisons and the Arkansas State Police. His executive recommendation also cuts the state’s 6 percent sales tax on groceries by half, which I support. This particular tax relief would cut $175 million from general revenues over the two-year budget.

Specifically, the governor is calling for a $4.36-billion budget for fiscal 2008, which begins this July 1, and a budget of $4.54 billion for the second year of the biennium. The two-year plan recommends:

(1) A 10 percent increase in funding for higher education, or $157 million.;

(2) $202 million in new money for public schools, not including whatever amount lawmakers put toward court-mandated improvements to school facilities;

(3) $117 million in new money for health and human services;

(4) $45 million in new money to the Department of Corrections, in part to add beds at the Women’s Unit and to open a special-needs facility at the Malvern prison. The Department of Community Corrections would get $29 million extra over two years, in part to hire more probation officers; and

(5) $14 million in new money to the State Police, partly to hire new troopers.

Cities and counties also would see an increase in turnback funds from the state. Governor Beebe’s budget calls for increases of $4 million each for cities and counties. Some members in the House would like to see higher turnbacks. Also on the minds of House members is the status of General Improvement Funds in light of a recent Supreme Court ruling that found many of the previous appropriations to be considered "special and local" legislation, which is prohibited by Amendment 14 of the Arkansas Constitution. General Improvement Funds are not appropriate for projects unless they benefit the entire state.

The governor also wants to increase homeowners’ property-tax credit from $300 to $350. Other tax cuts are aimed at farmers to help them on fuel costs and at manufacturers, through a reduction from 6 percent to 5 percent on the state sales tax on utilities.

We're still spending a lot of time drafting, revising, and filing bills, but we have allowed a few bills to get through committee and through our side of the capitol already. On the House floor during the week, we approved over two dozen items, including the following bills, which are now headed to the Senate:

- HB 1013 by Rep. Dawn Creekmore of Hensley, which requires prison time for a person convicted for the fourth time of indecent exposure. The crime currently is a misdemeanor, regardless of the number of convictions. The bill also stiffens penalties against Internet stalking of a child. Under HB 1013, a fourth or fifth conviction for indecent exposure within a 10-year period would be a Class D felony, punishable by up to six years in prison and a $10,000 fine. A sixth offense within 10 years of a previous conviction would rise to a Class C felony, punishable by up to 10 years in prison and a $10,000 fine. Internet stalking would go from a Class C felony to Class B, with a sentence of up to 20 years in prison and up to a $15,000 fine. The bill now goes to the Senate.

- House Bill 1041 by Rep. Shirley Walters of Greenwood, which requires juvenile courts to notify school officials of any student at that school who has been deemed by the courts as a sex offender or who has been charged with a sex offense. Current law leaves it to parents to notify school officials of their child’s legal problems, but supporters of the bill said that probably happened very rarely. The bill now goes to the Senate.

On Friday, Lt. Governor Bill Halter addressed the Democratic Caucus and outlined portions of his legislative package. He is aiming to increase funding for pre-kindergarten and to expand IRS section 529 allowances to assist Arkansans in college savings. Among the meetings early next week, the House and Senate Education Committees will meet jointly for a discussion on the recently-filed Act 57 report. On Monday night, we'll entertain legislators at the Texarkana Chamber of Commerce reception, which will be held at Rick's Armory.