Category Archives: State government

Where your vote really counts this year

Elections, Politics, State government

Hand with ballot and boxBy Steve Brawner
© 2016 by Steve Brawner Communications, Inc.

This year’s big races in Arkansas were decided long ago, when incumbents decided to run for re-election and when candidates decided which letter – “R,” “D” or something else – would be beside their name. Statewide, the “Rs” have it.

So even though you’re probably focusing most of your attention on the presidential race, your votes will count the most in local races and in the four ballot initiatives remaining on the ballot.

Those initiatives are where America stops being a republic governed by elected leaders and instead becomes a direct democracy – where you, Mr. and Mrs. Responsible Citizen, decide the law of the land.

Issue 1 is a constitutional amendment extending the terms of nine county officials – county judge, sheriff, etc., but not justice of the peace – from two years to four years. Secondarily, it would prevent county officers from being appointed or elected to another civil or elected office (school board, for example) while serving their terms; take their names off the ballot if they don’t have an opponent; and define the previously undefined “infamous crime” that warrants their removal from office.

Passage of the amendment would give elected officials more time to settle into their offices and govern instead of having to return to the campaign trail so soon after being elected. If you think that’s a good thing, vote yes. If not, vote no.

Issue 2 would allow the governor to maintain his or her powers when leaving the state. Under the Constitution, if Gov. Asa Hutchinson drives into Memphis or crosses the border separating Texarkana, Ark., and Texarkana, Tex., Lt. Gov. Tim Griffin becomes not just the acting governor but the actual governor. If Griffin is also out of state, then the Senate president pro tempore, Sen. Jonathan Dismang, R-Searcy, becomes the actual governor. Issue 2 would end that practice.

The pros? Governors travel a lot for legitimate reasons. Hutchinson, in fact, is in China this week meeting with business leaders he hopes will invest in Arkansas, and with government officials to promote Arkansas agriculture exports. In the past, replacement governors have taken advantage of their moment in the sun to sign a bill the governor didn’t like, or let people out of jail, or temporarily fire the governor’s chief of staff. On the con side, if the governor is out of state during an emergency – as occurred on Sept. 11, 2001 – current law ensures Arkansas still has a governor at home.

Issue 3 would allow the state to issue bonds for economic development projects in unlimited amounts. Currently, those bonds must equal no more than 5 percent of state general revenues. That provision would let the state go into more debt in order to attract a really big employer, such as an auto plant. The amendment also would allow cities and counties to provide economic development money to private entities, such as the local Chamber of Commerce. It also would let cities and counties sell bonds to private individuals rather than through a public sale.

Why vote yes? Because Arkansas is still a poor state, and it competes with other states that also use taxpayer funds to attract employers and spur economic development. Vote no if you’re concerned about how those funds are used, who benefits, and how much debt the state would incur.

The other initiative has attracted the most attention. Issue 6 is the Arkansas Medical Marijuana Amendment, which would legalize medical marijuana through a constitutional amendment. It would allow marijuana to be distributed through for-profit dispensaries and lists medical conditions that would qualify.

If you want more information, the Cooperative Extension Service has an excellent, unbiased voter guide at its website, www.uaex.edu. I used it for this column.

Tax cuts: some legislators cautious, others enthusiastic

Legislature, State government

By Steve Brawner
© 2016 by Steve Brawner Communications, Inc.

The easiest things for lawmakers to do politically are to cut taxes and increase spending, but there comes a point where the math stops working (except in Washington, D.C, where they can just pretend). Some state legislators are wondering if we’re reaching that point.

The reason they are wondering is because state revenues have not met the Department of Finance and Administration’s forecast each of the past three months. In fact, they’re $36.1 million less than expected and about the same as the state collected this time last year.

Meanwhile, the state is facing increasing costs that are hard to contain. Spending on K-12 public schools must increase every year or the state probably will be sued. Meanwhile, health care costs are rising – in particular, the so-called private option, where the state uses federal Medicaid dollars to purchase health insurance for lower-income Arkansans. When the program was created, it was expected to cover 250,000 individuals, but the numbers have zoomed past that, and next year the state begins paying 5 percent of the cost.

The situation wasn’t vastly different – at least the same trends existed or were predictable – in 2015, when Gov. Asa Hutchinson first came to office after having campaigned on a promise of cutting taxes. Hutchinson made a $100 million income tax cut his first priority, and legislators passed it right out of the gate early that year and then made spending decisions based off that.

It worked just fine. In fact, the state had a $177 million surplus in fiscal year 2016. But that surplus would not have happened were it not for two factors.

First, the economy is strong. The state’s unemployment rate is 3.9 percent, the lowest in recorded history, though part of the reason is because many individuals have dropped out of the workforce and aren’t counted in the rate.

The second reason for the surplus is that the state is taking a lot of money from Uncle Sam. The private option will rake in $1.6 billion in fiscal year 2017. Many Republican states said no to that money. Then earlier this year, Hutchinson and legislators found about $50 million in state funds so Arkansas would be eligible for $200 million in federal highway funds.

So balancing the budget actually has been pretty easy lately. The problem is that the factors that make it easy are temporary, but the factors that make it harder are permanent. The Great Recession supposedly ended in June 2009, which is news to a lot of people still struggling to make ends meet, but that’s the official date. That was seven years ago, and unless the laws of economics have been rescinded, another recession eventually will come around the corner. At that point, the state will have a lot of obligations that it might not be able to meet, especially as those education and health care costs continue rising. Meanwhile, at some point, the cash-strapped federal government will stop handing out money to the states like candy. Surely.

Hutchinson is determined to cut taxes. The governor’s duties include being the state’s chief marketing officer and deal-maker. He’s told by out-of-state corporate leaders that Arkansas’ high income taxes are a negative. But even he is scaling down expectations. He’s now talking about $50 million, which is not much.

Other legislators are even more cautious. Sen. Jake Files, R-Fort Smith, chairman of the Senate Revenue and Tax Committee, said any tax cut this year will occur after “more fact-finding and evidence-based methodology” than in 2015. He suggested a triggered tax cut that would occur only if revenues meet a certain mark. He’d also like to see the tax cuts targeted to lower income Arkansans, who were left out of the 2015 cut.

Other legislators, however, including Sen. Bart Hester, R-Cave Springs, are full steam ahead. He says the state has a surplus and that if the money stays in Little Rock, legislators will just spend it, and not efficiently. He’s pretty certain legislators will become more enthusiastic about a tax cut when they have the chance to pass one.

What would be the safe bet? There will be a tax cut – a small one, passed with cautious enthusiasm.

School work to be finished early

Education, State government

Bruce Cozart is chairman of the House Education Committee.
Bruce Cozart is chairman of the House Education Committee.
By Steve Brawner
© 2016 by Steve Brawner Communications, Inc.

The Arkansas Legislature goes into session in January, but some of the most important decisions will be completed this month, without much debate.

That’s because, by Nov. 1, the House and Senate Education Committees will complete the state’s adequacy report, the biennial (once every two years) document that governs how and how much (always more) the state spends on K-12 public education.

The adequacy report was created in the wake of the Lake View case, a lawsuit brought on by a poor, rural school district in the Delta. A series of court decisions said the state wasn’t spending enough on education and wasn’t spending it in the right places – including on students like those in Lake View. In response, Arkansas consolidated schools (Lake View ended up being one) and poured money into education at a time when other states were cutting spending.

Fear of returning to court has governed Arkansas policymakers ever since. No matter what the economic or budgetary situation has been, schools are funded first, and they always get a raise.

There was a time when the money spigot was wide open, but now it’s closed to a small stream. Basically, schools get a cost of living adjustment every year now. The chairman of the House Education Committee, Rep. Bruce Cozart, R-Hot Springs, figured out a raise of 1.15 percent this past weekend and challenged members to create their own figures.

That’s probably about what will end up happening. The committees will finish their work and present the adequacy report to Gov. Asa Hutchinson by Nov. 1. His administration will tweak it, it will be presented to the Legislature, and the Legislature will pass it without much debate. Any dissenting legislators will be cut off by two words: Lake View.

That’s roughly 41.5 percent of your general revenue budget right there – general revenues being the state spending over which legislators have the most control. The general revenue budget this past year was $5.3 billion, and of that, $2.2 billion went to the public school fund.

There will be arguments over smaller parts of the education budget, including funding for school transportation. Current funding is based on the number of students school districts have, not the number of route miles their buses travel, so some compact districts pocket extra money that they use for other purposes, while far-flung districts lose money driving all over the county. There’s been talk for years about basing funding on route miles, which seems obvious, but that would mean some districts would win and some would lose. When that happens, expect a fight to occur.

Education advocates will say a 1 percent raise isn’t enough, but they’d better be glad they’re getting it. The state does have other priorities – colleges and universities, human services, highways, prisons – that must fight for what’s left after schools, and advocates would say it hasn’t been enough.

A case can be made that the Lake View case set the stage for Arkansas being one of the few Republican-leaning states to expand Medicaid through Obamacare to create the controversial private option, which purchases private health insurance for lower-income Arkansans. The state was primed to take the money partly because it can’t cut funding for schools.

But starting next year, the private option, which has been funded almost entirely using federal dollars, will start to nibble at the state budget. The state will be responsible for 5 percent of the cost in 2017 and 10 percent by 2020. Meanwhile, the number of Arkansans receiving benefits has soared past the expected 250,000 and continues to rise.

That’s kind of scary. Schools will still get a raise, but everyone’s looking at rising health care costs. Meanwhile, highway advocates are begging for money that’s just not available. The state is trying to figure out how to slow the growth of prison costs without making crime worse. And amidst all that, the governor says he wants to cut taxes again.

How do you make the numbers work? The state’s economy must continue to grow, which it is doing to the tune of a 3.9% unemployment rate. And the state will continue to take federal dollars wherever it can, including for highways and health care.

There will be a big debate about that – taking money for health care. Legislators will have time because 41.5 percent of the budget will already be settled. Nothing starts an argument like the word “Obamacare.” Nothing shuts it down like the words “Lake View.”

When the governor crosses the line

Elections, Politics, State government

Gov. Asa Hutchinson
Gov. Asa Hutchinson
By Steve Brawner
© 2016 by Steve Brawner Communications, Inc.

If Asa Hutchinson is in Texarkana, Ark., he’s governor. If he crosses over into Texarkana, Tex., Tim Griffin, the lieutenant governor, becomes governor. If Griffin is also out of state, he isn’t the governor either, though he’s still lieutenant governor. In that case, Senate President Pro Tempore Jonathan Dismang, a legislator from Beebe, is governor – assuming he also hasn’t left the state.

Got it?

Under the Arkansas Constitution, the governor relinquishes his powers to the lieutenant governor whenever he’s out of state. But that could change. Issue 2 on the November ballot would allow governors to maintain their powers wherever they are.

Legislators placed the proposal on the ballot because this is the 21st century, and governors can maintain contact with home much more easily than in 1914, when voters created the position of lieutenant governor and assigned its duties.

Moreover, the governor has become, in addition to being chief executive, a traveling face-of-the-state and occasional globe-trotting salesman. For example, in the past 12 months Hutchinson has flown to China to help secure a $1 billion paper mill in Arkadelphia, and to Europe to attend an air show, meet with aerospace-related business prospects, and open the state’s European office. He’s going back to China in October. He was in Austin, Texas, for the Texas Tribune Festival Sept. 24.

The system works fine most of the time because Hutchinson and Griffin, like most governors and lieutenant governors, get along well, are members of the same party and know their roles.

But there have been times when things didn’t work so smoothly. When Gov. Mike Beebe, a Democrat, was at a National Governors Association meeting in 2013, his Republican lieutenant governor, Mark Darr, signed a gun bill Beebe did not intend to sign, though Beebe planned to let it become law unsigned. In 1993, when Gov. Jim Guy Tucker was out of state and the lieutenant governor’s office was vacant, Senate President Pro Tempore Jerry Jewell used his temporary powers to set free a convicted murderer and another convicted felon and pardon two men on parole. In 1987, Senate President Pro Tempore Nick Wilson fired Gov. Bill Clinton’s chief of staff, Betsey Wright, and vetoed some bills. Clinton rehired Wright when he returned. Wilson eventually went to prison, for other reasons.

This is the second time in 14 years Arkansas voters have had the chance to make this change. They rejected a similar proposal in 2002.

The arguments against? Even in the 21st century, there could be times when a governor might be out of state and inaccessible. On Sept. 11, 2001, Gov. Mike Huckabee was in Kentucky and could not return by air, and Lt. Gov. Win Rockefeller could act with authority on that terrible day because he legally was the governor. Plus, maybe it’s a good thing that the Constitution reminds the governor not to be too much of a globe-trotting salesman.

One other thing about Issue 2 is that it would add feminine pronouns to that part of the Constitution. Section 4 of Amendment 6, which would be amended, refers only to “his” and “he.” The assumption in 1914 was that the governor would be a male, which makes sense because women were six years away from having the right to vote.

I worked in the lieutenant governor’s office from 2003-06, and I can tell you that we don’t really need the position as it currently exists. Its only constitutional duties are to preside over the Senate and to serve as governor if the elected governor is out of state, dies or is incapacitated. No well-run business would have a “lieutenant CEO” with similar non-duties, a salary and staff.

So I will vote yes. The governor should still be fully governor when he or she leaves the state, just as when the president leaves the country, the vice president doesn’t take over the job.

But it’s not the reform that’s needed. What should happen is that the governor and lieutenant governor run together on the same party ticket, like the president and vice president, and work together as a team after elected. That way, Rockefeller could have managed the situation with plenty of authority as Huckabee’s lieutenant governor on Sept. 11, but Jewell wouldn’t have been able to let the convicted murderer out of prison.

At least Issue 2 will let the governor be governor whenever he crosses the line.