$5.18B state budget tops lawmakers' list

Assembly aims to wrap up Thursday

Arkansas lawmakers will try to wrap up their work during the 90th Arkansas General Assembly's regular session this week by completing action on a proposed $5.18 billion general-revenue budget, deciding whether this will be the first regular session in 44 years not to refer a proposed constitutional amendment to voters, and considering enacting ethics legislation.

They'll try to finish their work on a wide range of bills, including legislation requiring the secretary of state to arrange for the placement of a privately financed Ten Commandments monument on the state Capitol grounds, the proposed Religious Freedom Restoration Act and a measure banning the "re-homing" of adopted children.

Sen. Jon Woods, R-Springdale, on Friday filed a 13-page amendment to his Senate Bill 967 that would change the state's ethics laws and Amendment 94 to the Arkansas Constitution, which voters approved in November.

Amendment 94 extended term limits for lawmakers; barred them from accepting certain gifts from lobbyists, including food and drink in one-on-one meetings; prohibited direct campaign contributions from unions and corporations to state elected officials; and created a citizens commission to increase the salaries of state elected officials.

Woods' proposal would allow a state official who accepts an apparently barred gift from a lobbyist to return the gift to the donor or, if the gift is not returnable, pay the donor "consideration that is equal to or greater than the value of the gift" within 30 days of discovering or learning of a purported violation. The Arkansas Ethics Commission would be barred from proceeding with an investigation in these cases, and the person "shall not be considered to have committed a violation" under the proposal.

Among other things, Woods' proposal would increase the $2,000-per-election contribution limit to state candidates from individuals, political parties, legislative caucus committees and political action committees to $2,700 per election. The limit also would be adjusted at the start of each odd-numbered year in an amount equal to the percentage certified to the Federal Election Commission by the Bureau of Labor Statistics.

Legislators' salaries are increasing from $15,869 to $39,500 a year, while the annual pay for the speaker of the House and the Senate president pro tempore is climbing from $17,771 to $45,000 as a result of the citizens commission's decisions earlier this month. In return, the Legislature enacted legislation so they are no longer eligible for up to $14,400 a year in office-related expenses.

Today is the 78th day of the regular session.

Legislative leaders are aiming to end the session by Thursday, the 81st day of the regular session -- a day before Good Friday.

House Concurrent Resolution 1004 by House Speaker Jeremy Gillam, R-Judsonia -- which was approved by the House and Senate -- requires the Legislature to recess by April 10 and gives the Legislature until May 8 to reconvene and settle any last minute business before adjournment.

In advance of the session, Senate President Pro Tempore Jonathan Dismang, R-Searcy, and Gillam said they were aiming for an 85-day session after the Legislature met in a 101-day session two years ago.

"We're gonna run the Revenue Stabilization Act," distributing state general revenue to state agencies and programs in fiscal 2016, in the Joint Budget Committee today, Gillam said.

The House and Senate will consider identical versions of the measure on Tuesday and "they'll cross back over and we'll vote on it on Wednesday, and come back in on Thursday .... and clean up any remaining items on Thursday and close down the session," Gillam said.

Dismang said "for the most part, we are trying to go wind down and try to focus on [the proposed state budget for fiscal 2016], let members digest that, and get ourselves out of here a quick as we can."

STATE BUDGET

Under the proposed state budget released Friday afternoon by legislative leaders, state general-revenue spending would increase by $133 million to $5.18 billion in the fiscal year starting July 1.

Most of the increase would go to the state's public schools, human services programs and prisons under the proposed Revenue Stabilization Act, which would distribute state general revenue to state agencies and programs in fiscal 2016. The proposed general-revenue budget is similar to the one Republican Gov. Asa Hutchinson unveiled two months ago.

The proposed budget factors in a $6 million state general-revenue reduction in fiscal 2016 resulting from legislation that will restore capital-gains tax cuts repealed earlier in this session. It also creates a $4.3 million rainy-day fund.

Act 22 -- enacted earlier this session to reduce income tax rates for Arkansans with taxable incomes between $21,000 and $75,000 a year and repeal certain capital-gains income tax cuts enacted in 2013 -- already is projected to reduce state general revenue by $22.9 million in fiscal 2016.

The proposed general-revenue budget calls for several program cuts to free up rainy-day funds while also making up for the revenue lost because of the capital-gains tax cut. The biggest reductions include a $4.95 million cut in the state Department of Health for grants to community health centers, and a $2.5 million reduction to the Arkansas Science and Technology Authority for Accelerate Arkansas grants, state officials said.

The Legislature and the governor would each get $20 million from the General Improvement Fund to spend on their favored projects. The Senate and the House would get $10 million each to distribute for projects recommended by lawmakers.

CONSTITUTIONAL AMENDMENTS

As of Friday, legislative leaders said they've not been able to reach a consensus between the House and Senate State Agencies and Governmental Affairs committees on which of 41 proposed constitutional amendments to refer to voters in 2016.

If they don't refer any amendments to voters, it will be the first time that's happened in a regular session since 1971, according to the Bureau of Legislative Research.

Gov. Asa Hutchinson said last week that he favors referring to voters a proposed constitutional amendment allowing the governor to retain his duties when he's outside the state and another amendment that would allow the state to issue more bonds to land superprojects.

"We still have [this week]," to consider referring proposed constitutional amendments to voters, Gillam said Friday.

"I wouldn't rule it out completely," he said Friday, adding "at this point it doesn't look like some constitutional amendments are going to come through."

Dismang said, "I have taken the position that I don't see anything that really rises to the occasion of being presented to the voters.

"I still believe that," he said.

ETHICS

Woods' 13-page amendment to SB967 would extend the ban on state lawmakers and constitutional officers accepting certain gifts from lobbyists to members of the state Supreme Court and Court of Appeals, circuit and district judges, and prosecutors.

It would specify that the food and drink that lawmakers may accept at a planned activity to which a legislative committee is invited could be accepted by only members of that committee. All lawmakers, the Senate or the House also may be invited to a planned activity under Amendment 94.

The amendment would define a planned activity as "an event for which a written invitation is distributed electronically or by other means by the lobbyist, person acting on behalf of a lobbyist or the person employing or contracting with a lobbyist to members of the specific governmental body at least 24 hours before the event."

It would limit a lobbyist, a person acting on behalf of a lobbyist or a person employing or contracting with a lobbyist to offer or pay for food or drink to no more than one planned activity in a seven-day period.

It would exempt from the gift ban a personalized award, plaque or trophy with a value of $150 or less.

The amendment also would bar a candidate or elected official from displaying one or more campaign banners, campaign signs or other campaign literature larger than 12 inches by 12 inches on a car, truck, tractor or other vehicle belonging to the candidate or public official while on the state Capitol grounds.

Metro on 03/30/2015

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