Money for crime victims at risk

Attorney general says 2 months left

A decades-old program to help violent-crime victims in Arkansas is on track to insolvency, according to the state's departing attorney general.

Dustin McDaniel said Tuesday that crime victims waiting on claims from the Arkansas Crime Victims Reparations Board could have to wait indefinitely because of a lack of state funding and delays in federal money.

The program, enacted by the Legislature in 1987, awards money to violent- crime victims to help pay for medical and mental health treatment, as well as provide financial assistance to families of victims killed in a violent crime by helping to cover funeral costs.

In 2013, the board awarded nearly 2,400 claims worth $3.9 million. So far this year, it has awarded about $3.3 million to 2,403 applicants.

On Tuesday, McDaniel said there is enough money to pay crime victims through February. After that, he said, it's up to the incoming Republican attorney general, Leslie Rutledge, and new Gov. Asa Hutchinson to decide the program's fate.

"I think you'd need $2 [million] to $3 million to ensure a seamless, continued operation," McDaniel said. "They can end this program, they can augment this program, they can modify this program. But it will take some active decisions on the part of the leadership to do that."

Although unavailable for an interview, Rutledge -- who will replace McDaniel on Jan. 1 -- released a statement.

"Because of the projected shortfall, I am deeply concerned about the viability of this program and will work closely with the legislature to determine the steps necessary moving forward," she said.

Rutledge joined McDaniel at a legislative budget committee hearing in late November, where McDaniel requested a new funding source to provide $3 million to keep the program solvent.

During that meeting, legislators approved a $3.5 million increase in the Administrative Office of the Courts budget to help pay for new judge training, more court interpreters and to improve the state's court records automation program.

They denied McDaniel's request.

"We had engaged in stopgap measures to carry this through the fiscal year so the incoming attorney general would have time to work this out with the Legislature leadership in January, but those weren't enough," McDaniel said. "We're a little bit a victim of our own success. We've seen an increase in submissions and requests for reparations."

The money for crime victims is dependent on about $1.5 million in federal grants and more than $2 million in state money allocated through the Administration of Justice Fund.

But the fund -- which comes from court fees and real estate transfer taxes -- is used to pay for a wide range of programs, such as the University of Arkansas board of trustees and the Arkansas State Police Retirement Fund.

Department of Finance and Administration budget administrator Brandon Sharp said the fund isn't collecting as much money in fiscal 2015.

In fiscal 2013, it brought in about $2.5 million a month, then peaked in fiscal 2014 with receipts of about $2.8 million a month. So far in fiscal 2015, Sharp said, the fund is averaging about $2.4 million a month, a drop attributed to a decrease in the number of court filings and less court activity.

McDaniel said that his office became more aware of how dependent the program was on the justice fund about a year ago, but it wasn't until several months ago that he realized that a funding problem was imminent.

"We knew this is something this General Assembly would have to fix. I've got [funding] until the end of February. It's not like [it ends] today," McDaniel said. "But as this [General Assembly] is looking to keep tax cut promises and revenue cuts, keeping an eye on ... building a prison and all the budgetary restraints the new administration will have to deal with, this is just one more. [We want to make sure that] whatever fiscal decisions they make, vis-a-vis taxes, revenue, payments, expenditures or whatever, they don't look up in the summer and go, 'Oh gosh, we didn't know.'"

Metro on 12/17/2014

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