Insiders: New Legislature unpredictable

— The 88th General Assembly convenes Monday at noon to tackle about 2,000 bills involving a $24 billion state budget, prison overcrowding, possible tax cuts and tax increases, highway improvements, and repaying the federal government $330 million for unemployment benefits provided to Arkansans during the recession, and other issues.

The collective face and personality of the 135-seat Legislature will undergo a significant makeover, with the number of Republicans increasing from eight to 15 in the 35-seat Senate and from 28 to 44 in the 100-seat House of Representatives.

Attorney General Dustin McDaniel, a Democrat and former House member from Jonesboro, said all the new members, particularly the influx of Republicans, make it hard to predict how the session will play out.

“I haven’t gotten a feel for it yet,” McDaniel said. “You can start to get a feel for a session by knowing the personalities of the players and what issues are going to be public flash-point issues and which issues are really serious go-to-the-mat principle issues.”

But the problem, McDaniel said, is that those things are unknown this year.

Capitol insiders, including veteran legislators, lobbyists and agency officials, aren’t familiar with the new legis- lators. Relationships and trust at the Capitol often take years to build.

Gov. Mike Beebe answered questions on the upcoming legislative session Wednesday during a luncheon at the Arkansas Press Association.

Beebe talks on upcoming session

Video available Watch Video

“It’s going to be interesting,” McDaniel said. “And I hope it’s going to be fun. We get more done when people are enjoying each other’s company and sharing in each other’s successes.”

It usually takes some time for legislators to get to the meatier issues.

The first few days will deal with official formalities, such as declaring the election winners to be winners, swearing in officials, engaging in organizational detail such as making committee appointments and the like.

On Monday, Rep. Robert Moore, D-Arkansas City, will be sworn in as speaker of the House, and Sen. Paul Bookout, D-Jonesboro, will become the Senate president pro tempore.

On Tuesday, Gov. Mike Beebe, a Democrat, will take the oath of office as he begins his second four-year term.

A big item this session, as with every session, is passing a budget.

“It’s all about the money,” said Sen. Gilbert Baker, RConway, co-chairman of the Budget Committee.

Beebe has asked the Legislature to approve a fiscal 2012 general-revenue budget of $4.59 billion, 2.5 percent more than fiscal 2011, resulting again in an overall budget of about $24 billion.

The state’s fiscal year starts July 1.

The governor’s proposal would give a 1 percent general-revenue increase to colleges and universities, provide a $55.1 million increase for the Public School Fund (to $1.86 billion) and allow $23.3 million for state employee costof-living raises of 1.86 percent across the board.

The Department of Correction budget would increase 5.6 percent to $378.6 million, including a 2.1 percent increase in general revenue to $304.2 million.

The Department of Community Correction’s generalrevenue funds would increase 6 percent to $72.4 million, allowing the department to hire 41 probation and parole officers, restoring positions that were frozen because of budget cuts, and add staff at minimum-security lockups for nonviolent offenders.

TAXES

Beebe’s budget takes into account his plan for stripping out another half-percentage point from the state sales tax on groceries — currently 2 percent — which will reduce revenue by $20.8 million in fiscal 2012.

Republicans and Democrats seem to be in general agreement that taxes should, and can, be cut by some amount.

But there is wide disagreement about how to do it.

Baker said he’d like to cut more than one type of tax but isn’t yet sure what can be done.

“I support Gov. Beebe’s grocery-tax cut,” Baker said. “And I really think there is some merit to cutting the tax on used cars.”

Baker said legislators have lots of “great ideas” but it’s always tricky trying to find ways to afford those ideas and pass a balanced budget, which is required by the state constitution.

The sales tax on used cars brings in about $125 million a year.

The other budget cochairman, Rep. Kathy Webb, D-Little Rock, said she’s most interested in cutting the income tax for single parents of two or more children making less than the federal poverty level. Under current law, they may have to pay state income tax. Webb called this a “mistake.”

Making those single parents exempt from income tax would reduce state revenue by about $3.6 million a year.

Others want to cut the capital-gains tax, and still others want to further cut the sales tax on energy used by manufacturers.

Moore has called for possibly raising taxes.

He says the state needs more money for highway construction and maintenance, and that will probably require a tax increase.

Others, including Beebe, have said a tax increase is doubtful, given the anti-tax mood among voters and officials.

But they’ve said they might support the Legislature referring a highway-tax increase proposal for voters to approve or reject.

This was an idea proposed Dec. 1 by the Blue Ribbon Committee on Highway Finance.

The Arkansas Highway and Transportation Department has said that over the next decade there will be $19 billion of highway needs but only $4 billion to pay for the work.

DEMOCRATS, REPUBLICANS

Another dynamic of the session will be the relationship between Beebe and Republican Mark Darr, who will be sworn in as lieutenant governor Tuesday.

Beebe campaigned for Darr’s Democratic opponent, former Sen. Shane Broadway, D-Bryant.

“I’ll be there to support the governor in any way I can, any way he asks,” Darr said.

He said that would include going on economic development missions.

“But if asks me to support Obamacare, I won’t do that,” Darr said. “But I’m here to support him. I’d say probably 95 percent of the time we’re going to agree on a lot of things.”

The lieutenant governor has no authority beyond presiding over the Senate and casting votes in cases of a tie. He also becomes acting governor when the governor is out of state or is incapacitated.

Beebe and Darr have yet to have a meeting.

“I don’t know when our first, if ever, we’ll have a sitdown meeting,” Darr said. “I guess that’s up to him.”

Beebe has said any relationship he has with Darr will be up to Darr.

Darr said he wants to “build up” the Republican Party but doesn’t plan to take a leadership role.

“We can all be equals,” he said. “Hopefully, we can recruit some Democrats to go along with us as well.”

Republican leaders have said that while they will bring new ideas to the Capitol, they

Notable legislation in recent sessions

2009

Length: 88 days Number of bills: 2,285

Lawmakers OK’d a 56-cent-per-pack cigarette tax and increases on other types of tobacco expected to raise about $72 million for an emergency care network to save trauma victims and for 22 other health-related programs.

Legislators also paved the way for selling lottery tickets to pay for college scholarships. Act 606 created a nine-member commission that has powers ranging from hiring a director and internal auditor to entering into agreements to participate in multistate games.

Act 436 shaved a percentage point off the 3 percent state sales tax on groceries. It was estimated to reduce state revenue by $40 million a year. Gov. Mike Beebe has indicated he wants the rate lowered another half-percent in the 2011 session.

Act 33 made the torture of dogs, cats and horses a Class D felony punishable by up to six years in prison and a $10,000 fine. The bill also called for psychological treatment for offenders and banned cockfights.

Act 308 made not wearing a seat belt a primary offense, meaning that police can pull someone over just for that infraction. It fines motorists $25.

2008

Length: 3 days Number of bills: 6

A special session in 2008 increased the severance tax on natural gas to raise road-improvement money. The tax was expected to raise $57 million in 2009, going up to $100 million in 2013, but a decline in gas prices made collections less than projected.

2007

Length: 87 days Number of bills: 2,817

In Act 110, the Legislature approved Beebe’s proposal to halve the state sales tax on groceries to 3 percent.

Act 195 exempted low-income Arkansans from paying state income taxes and offer additional tax credits to those whose incomes are just above the federal poverty level.

Lawmakers enacted Act 510, the economic development incentive quick-action closing fund. The fund can be used by the governor and the state Department of Economic Development to attract new business and economic development to the state.

2006

Length: 6 days Number of bills: 75

Act 15 in this special session raised the state’s minimum wage to $6.25 from $5.15 and extended a minimum wage to large companies and state employees. It was the first increase in nearly a decade.

Act 8 barred smoking in workplaces of most businesses with certain exceptions.

2005

Length: 97 days Number of bills: 3,176

Act 256 required that tablet forms of certain cold medicines be sold only from behind the counter of a registered pharmacist, an attempt to curtail sales of ingredients for the illegal drug methamphetamine.

Each chamber agreed to place on the 2006 ballot a proposed constitutional amendment to allow charitable bingo and raffles in Arkansas (voters adopted it).

Act 1429 set a new higher education funding formula to distribute state dollars to state colleges and universities. State funding to higher education increased from $568 million in 2005 to $644 million in 2007.

2003

Length: 94 days Number of bills: 2,885

Legislative leaders and Gov. Mike Huckabee talked about overhauling state sentencing laws to slow growth in the number of prison inmates and rising costs, but the Legislature made no significant changes.

Dozens of bills were introduced to address court-ordered improvements to the state’s public schools, but none got through.

Act 182 revised and extended tax incentives for businesses to encourage economic development.

2001

Length: 97 days Number of bills: 2,643

Act 1841 raised the tax on beer by 3 percent (about 15 cents per six-pack) to restore funding for preschool programs cut by Gov. Mike Huckabee after his administration acknowledged that its revenue forecast was too optimistic.

Act 1456 raised Arkansas teacher salaries $3,000 over two years.

SOURCE: Bureau of Legislative Research Arkansas Democrat-Gazette want to work with Democrats and get along with their colleagues.

McDaniel said he hopes that’s the case.

“It’s harder to have partisan rancor if you like each other,” McDaniel said. “But if we just divide up on party lines and decide that one side is good and one side is bad it’s not going to be any fun. The Republicans I’ve talked to have said that’s not what they want to do.”

But he said he’s a little concerned that party politics as practiced in Washington may seep into Little Rock. He said he hopes legislators focus on their bills in their committees and not on caucusing as Democrats or Republicans.

ISSUES

Rep. John Burris, R-Harrison, the House GOP leader, said his goal is to find “good solutions” for an expanding Medicaid budget, highways needing repair, paying down the balance in the unemployment trust fund, the ballooning prison population, and high taxes.

The issues legislators face in fixing those problems include:

The number of inmates in state prisons has grown to about 16,000. A study by the Washington, D.C.-based Pew Center on the States recommended, among other things, probation for more nonviolent crimes. Beebe has said he wants to adopt some of the group’s findings.

The state Medicaid budget (of state and federal funds combined) is $4.5 billion for fiscal 2011 and is projected to increase to $5.1 billion in fiscal 2012. State officials have said the $300 million Medicaid Trust Fund will make up the difference but will run out by the end of 2012, potentially putting the state in a bind by fiscal 2013.

The federal government has loaned about $330 million to pay unemployment benefits. The Department of Workforce Services is working with the Arkansas State Chamber of Commerce and the Arkansas AFL-CIO to reach a compromise to come up with money to pay it back. That compromise could include a combination of additional taxes on businesses and unemployment benefit cuts.

ON THE AIR

The Arkansas Educational Television Network (AETN) will broadcast Beebe’s State of the State address on AETN-1 about 10:30 a.m. Tuesday, after the swearing in of new legislators.

During the course of the 2011 legislative session, AETN will also broadcast the Arkansas House of Representatives session live on AETN-2 beginning Monday.

Not all cable companies carry AETN-2,, according to AETN.

Ones to watch These are expected to be major players from the legislative and executive branches in the meeting of the 88th General Assembly, which starts Monday.

CONSTITUTIONAL OFFICES

Mike Beebe

Governor

“I’ve said a long time ago that this isn’t a dictatorship. I’m not the only one with ideas.”

Age, date of birth: 64; Dec. 28, 1946 Home: Searcy

Background: A Democrat, Beebe served in the state Senate for 20 years and four years as attorney general before being elected governor in 2006. He was re-elected last year. He’s knowledgeable about how state government works, generally avoids partisan battles, and usually succeeds in persuading legislators to support his agenda.

Dustin McDaniel

Attorney general

“Building and maintaining solid bipartisan relationships [can be done] as long as you invest the time in it. I’m going to have to sit down [with new legislators] and have a meal and hear about their business and what led them to public service."

Age, date of birth: 38; April 29, 1972

Home: Jonesboro, Little Rock

Background: A former Democratic legislator, McDaniel says he won’t propose much legislation but will offer advice and information to new legislators. He has enjoyed a good relationship with lawmakers and says he’ll work to make sure that doesn’t change with the influx of Republicans.

Mark Darr

Lieutenant Governor

“We’re going to stand up for Arkansans on health care. Hopefully there will be some legislation passed this year that sticks up for the people against that unconstitutional [federal] mandate [that requires people to buy health insurance.]”

Age, date of birth: 37; July 3, 1973

Home: Springdale

Background: A Republican, Darr owns two pizza restaurants in Rogers. He beat former Sen. Shane Broadway, D-Bryant, in the lieutenant governor’s race but has no prior political experience. He wants to place on the Internet more information about government transactions.

BEEBE ADMINISTRATION

Morril Harriman

Chief of Staff, governor’s office

“I see my role in assisting the governor and advocating for his agenda, his programs. A vast majority of the time I consider myself a surrogate for him.”

Age, date of birth: 60; Aug. 6, 1950

Home: Little Rock

Background: A lawyer who is a former Democratic state senator from Van Buren and former poultry lobbyist, Harriman is a longtime friend and confidant of the governor. Given the number of new legislators, he expects to spend more time this session providing information and background about policy and proposals. He said legislators are free to go straight to the governor with proposals but that as a practical matter many legislators choose to see him first.

Richard Weiss

Dept. of Finance and Administration director

“Our function is to provide our best advice and assistance to the governor to help him make decisions.”

Age, date of birth: 66; Jan. 27, 1944 Home: Little Rock

Background: Born in the Belgian Congo to Christian missionaries, Weiss rose in state government from a maintenance worker at a state park to top positions under four governors. His key role will be promoting Beebe’s budget plan and educating new legislators on how the state’s budget works.

John Selig

Dept. of Health and Human Services director

“We hope to have a fairly quiet session.”

Age, date of birth: 50; July 2, 1960 Home: Benton

Background: Friendly and unassuming, Selig is in charge of the largest agency in state government. Human Services has about 7,500 employees and is involved with just about all legislation that goes through the Public Health Committees. Although a Medicaid revamp is being developed, he said much of that will be done administratively. He said he hopes to obtain more state funding to help disabled people in community settings.

Artee Williams

Department of Workforce Services director

“It is a pretty involved process for us, [and] it weighs pretty heavy on our shoulders.”

Age, date of birth: 63; Sept. 20, 1947

Home: Sherwood

Background: A steady hand in the state since 1980, his previous positions include state personnel administrator and deputy director of the Department of Human Services. He’s in negotiations between labor and management over how to repay the $330 million debt to the federal government for unemployment benefits.

Ray Hobbs

Dept. of Correction director

“We should lock up the people who hurt us. Those people we are mad at … there’s other ways to deal with those folks.”

Age, date of birth: 58; July 28, 1952

Home: Pine Bluff

Background: Hobbs has been with the department 35 years, beginning as a corrections officer at the Tucker Unit. He’s been assistant warden, warden, assistant director, and was the department’s chief deputy director for nine years before taking over as director last year. A big issue this session will be how to curb the growth rate in the number of people in prison.

SENATE

Paul Bookout

“We’re all equals. I’m ready for a bipartisan approach.”

Age, date of birth: 48; June 30, 1962 Home: Jonesboro Background: A Democrat, Bookout, a funeral home director, will be Senate president pro tempore. The position has no more authority than other senators, but the holder of the title often helps organize the Senate, negotiates with the House and the governor, and steers legislation. His late father, Jerry Bookout, held the position during the 1991 session.

Gilbert Baker

“I view my role as working the tax cuts that we do pass into the budget.”

Age, date of birth: 54; Sept. 5, 1956 Home: Conway

Background: A Republican, Baker is a retired UCA music professor who was among seven losing candidates for the Republican nomination for U.S. Senate last year. He’ll continue being the Senate chairman of the Joint Budget Committee and help share his institutional knowledge with younger legislators.

Robert Thompson

“I think I bring an eye for detail, and I hope I can spot some problem areas and pitfalls.”

Age, date of birth: 39; June 19, 1971 Home: Paragould Background: A Democrat, Thompson, an attorney, is counted by Bookout as his closest adviser in the Senate. Thompson wants to focus on budget issues but will also be involved in prison matters.

Larry Teague

“We have to do something to make Arkansas more attractive to employers. I don’t know what that is. We need Arkansans working.”

Age, date of birth: 52; March 11, 1958

Home: Nashville

Background: A Democrat, Teague, an insurance agent and a former House member, will be chairman of the Revenue and Taxation Committee, the only returning member of that committee. He supports the governor’s plan for a cut to the grocery tax but also wants to help reduce income taxes on low-income people.

HOUSE

Robert Moore

“We all operate at our best when we enjoy life, at least I do.”

Age, date of birth: 66; Jan. 1, 1945 Home: Arkansas City Background: A Democrat, Moore will be speaker of the House. In that position, he’ll set the House agenda, decide which committees debate bills, and appoint most committee chairmen. He was director of the Alcoholic Beverage Control Board for 20 years before being elected to the House.

Kathy Webb

“We have a responsibility as a term-limited Legislature, if we know there are going to be certain problems, to have the public policy discussion today and not wait.”

Age, date of birth: 61; Oct. 21, 1949 Home: Little Rock Background: A Democrat, Webb is the co-owner of an Asian-style restaurant west Little Rock. Studious and low-key, Webb is an ally of Moore and was chosen by colleagues to be the House chairman of the Budget Committee. She’ll also be working on prison, highway and environmental issues and pushing for an income-tax cut for lowincome people.

John Burris

“My role as minority leader will be trying to get folks on the same page as much as we can.”

Age, date of birth: 25; Sept. 27, 1985 Home: Harrison Background: A Republican, Burris is a fulltime legislator who previously worked in real estate. He will be the House GOP leader. He has been a frequent attendee at committee meetings between sessions and often asks questions. He’ll be working on prison, highway and tax issues, among others.

Bobby Pierce

“I see my role as backing Robert Moore in whatever, to make sure he gets most of his stuff out.”

Age, date of birth: 60; Sept. 8, 1950 Home: Sheridan

Background: A Democrat, Pierce owns a hardware store and utility contracting business. Moore counts Pierce as one of his top two advisers, along with Webb. Pierce wants to work on reducing the need for many college students to retake high school courses.

Arkansas Democrat-Gazette

Front Section, Pages 1 on 01/09/2011

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