At separate events Monday, Gov. Asa Hutchinson announced a reduction of the cost of worker's compensation insurance for Arkansas employers and a new economic development initiative for the state.
The workers' compensation cost is being reduced 15.4 percent for the voluntary market and 14.9 percent for the assigned-risk pool, Hutchinson said during at a news conference at the Little Rock Regional Chamber Auditorium.
The decrease comes as a result of a decline in the number of work-related injuries over the past two years, the governor added.
Insurance Commissioner Allen Kerr approved the decreases after recommendations from the National Council on Compensation Insurance, Hutchinson said.
The Insurance Department said the new costs reflect only industry averages and will have varying impacts on workers' compensation rates when individual risk factors are applied for each business.
Hutchinson called the reduction the largest in 20 years and called the drop good for the state's economy.
"It's a reflection of how we are managing costs in a conservative way," the governor said.
Rajesh Chokhani, CEO of Welspun, a Little Rock-based pipe supplier, praised the move at Monday's announcement.
"This reduction will give us more dollars to invest in safety," he said.
Later that day, Hutchinson announced the launch of the Arkansas Economic Development Commission's Competitive Communities Initiative at Mosaic Templars Cultural Center on West 9th Street in Little Rock.
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The goal of the initiative is to make Arkansas more competitive in attracting jobs and investments, according to the commission's website. An evaluation program implemented at the community level will allow for third-party assessment and recommendations for improvement, the commission said.
In a statement, Hutchinson said: “Other states have more than brown and green fields that are shovel-ready. ... The projects we’ve missed out on were because we didn’t have the product ready, and companies weren’t willing to wait. We must be ready for the next opportunities both big and small; this includes the state and the local community.”
Read Tuesday's Arkansas Democrat-Gazette for full details.
The Associated Press contributed to this story.