The 88th General Assembly
has convened the 2012 fiscal session

Monday, March 23, 2009

GIF not the money grab it formerly was in the House

With the 2006 Wilson v. Weiss ruling clarifying that many (most) appropriations from the General Improvement Fund violated the special and local legislation prohibition outlined in Amendment 14 to the Arkansas Constitution, the Arkansas House has drastically changed how it distributes its portion of the fund. Max Brantley named the portion of the General Improvement Fund designated for individual legislators Hogzilla, and rightly so in many instances.

The recent change in how the fund is distributed in the House does not mean that attempts to fund local projects with state fingerprints have ended, but the House now has a few large bills to funnel GIF funds through specific agencies to (1) rural fire departments to supplement Act 833, (2) senior citizen centers and (3) rural services. In 2007, we also greatly increased the turnback funds for cities and counties and put the obligation on those entities to fund projects in the area if they so choose. We may be prohibited from passing local and special projects, but once funds are appropriated to local governments, they are free to use the funds however they choose -- truly the only way to avoid special and local legislation.

Some valid criticism of these bills is that legislators can continue to have input and direction in determining what projects are to be funded, but that is still contrary to the purpose of increasing turnbacks and to put an end to local legislation (plus, much of the criticism comes from the legislator's ability to prefer some projects over others -- it's strictly a political deal, many say). House Budget Chair Bruce Maloch is in the unenviable position of telling legislators to withdraw bills that appear to violate Amendment 14.

Is it perfect? No. One person's pork is another person's pleasure (ie, War Memorial Stadium). Still, most view rural fire departments, senior citizen centers and turnback funds to be in the latter category of essential projects. So long as the General Improvement Fund exists with money to fund it, there will be disagreements as to how to use it, or whether to use it at all.