Hutchinson details special session project, efficiency plan

Gov. Asa Hutchinson speaks Thursday at a news conference.
Gov. Asa Hutchinson speaks Thursday at a news conference.

Gov. Asa Hutchinson on Thursday confirmed he will ask legislators to approve an $87 million bond issue in an effort to secure a defense contract for Lockheed Martin in south Arkansas.

The governor also revealed more details about plans to merge several state agencies into others — moves that would eliminate some positions — and said officials are studying whether the state can make a claim against a company that didn't deliver after being awarded a multimillion-dollar contract.

Hutchinson called the Department of Defense contract to build Joint Light Tactical Vehicle an "exciting and important defense project" that would retain 550 existing employees in Camden and double the company's Arkansas workforce over time.

The bond issue must be approved by legislators under Amendment 82. Hutchinson said he expects it to be "well-received" by lawmakers. The bond issue, which would largely support improvements to physical structures and equipment but also bond-writing and training program expenses, would be contingent on Lockheed Martin winning the contract.

Hutchinson said the project is the "most important" item on the agenda for the special session, which begins Tuesday.

"That's really the fundamental reason we're calling the legislature back into session," he said. "And this is an exciting project for Arkansas."

Hutchinson, speaking at a news conference at the state Capitol, also detailed a plan to merge four state agencies into other agencies, a move he estimated will save $10 million over 5 years.

That efficiency plan would shift the Department of Rural Services and the Arkansas Science and Technology Authority into the Economic Development Commission, the Division of Land Survey into the Arkansas Geographic Information Office, and the Arkansas Building Authority into the Department of Finance and Administration.

He said the changes save money and also improve state services and provide "better coordination on economic development."

"In managing government, small things matter and can add up," he said. "And so we're not just concentrating on the big items, but the small items as well."

The plan would eliminate several jobs. Hutchinson said some of the positions will be eliminated through attrition, others are currently vacant and some employees may be shifted to other, open jobs. He acknowledged there is the "potential" for layoffs.

Hutchinson said he has also asked the attorney general's office to see whether the state can make any claims regarding a $4.8 million Department of Human Services contract that went to CH Mack. He said the state "did not receive any specific benefit" from the work.

"It was poor contractor performance," Hutchinson said. "Quite frankly, I don't believe it had the oversight that was needed from the government side, and the result was the taxpayers lost money."

Hutchinson said the contract ended before he took office and he learned of it after his election. He also said he has instituted a "more stringent" process that requires contracts worth $1 million or more to be reviewed by his office.

See Friday's Arkansas Democrat-Gazette for full coverage.

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