Legislature convenes on budget issues

Arkansas Gov. Mike Beebe urged lawmakers on Monday to keep their focus on the state’s finances, as the Legislature gathered for its first fiscal session under an amendment requiring them to meet and set a budget annually.

“We have the opportunity and the responsibility to set the tone for future fiscal sessions by following the will of the people and keeping this session focused, brief and on the budget,” Beebe told a joint session of the House and Senate.

In 2008, voters directed legislators to meet every year — for general sessions in odd-numbered years and for budget matters in even-numbered years.

This year’s session opened after the state had to cut $206 million from its current budget because of declining tax revenues. Beebe has proposed a relatively flat budget for the fiscal year beginning July 1 that calls for no raises for state workers.

Beebe said his $4.5 billion budget for the coming fiscal year will restore the cuts.

“That’s all it does. It keeps everything else flat,” Beebe said. “All of us suffer together.”

House Speaker Robbie Wills told lawmakers the new session gives the Legislature a chance to respond quickly to the economic turmoil. But he advised them to keep the session focused solely on the budget, as the amendment intended.

“Let’s build on our accomplishments by doing three simple things: Let’s get in, let’s get the job done and get home,” Wills said.

One of Beebe’s budget proposals that’s likely to face scrutiny is his call for a reserve fund of $34.5 million. Any revenue that comes in above projections would flow into that fund. Beebe has said he’s willing to drop the idea in the face of opposition from lawmakers who say that the money should instead go into the state’s general fund rather than a reserve.

Beebe cited his 20 years as a state senator and said he was sensitive to concerns that the fund would be granting his office too much power.

“I’ve got to tell you, I would never, ever overreach,” Beebe said.

The only non-budget issue lawmakers are expected to consider is setting the amounts for scholarships to be funded by the state lottery.

A legislative panel has recommended $5,000 scholarships to four-year schools and $2,500 for two-year schools for incoming freshmen, current college students and nontraditional students.

Last week, Beebe’s office had recommended smaller scholarship amounts for current students, saying the governor wanted to rely on a smaller estimate of lottery revenue. But the governor said last week that he would sign the recommended amounts into law if the legislation reaches his desk.

“While I would prefer to err on the side of being overly conservative, in this democracy that we have, I am willing and able if you are convinced we can make it, to go a little bit higher than my conservative values suggest,” said Beebe, who warned that it would be up to the Legislature to constantly monitor the lottery’s revenues and determine the award amounts.