4 budget bills pass in state's House, Senate

Proposals offer $133M rise; chambers’ final votes today

The Arkansas Senate and House of Representatives handily approved identical bills Tuesday that boost state general spending by $133 million in the fiscal year starting July 1 to $5.18 billion.

They also signed off on identical measures that would distribute $243 million through the General Improvement Fund, which is mostly surplus funds, to programs and projects ranging from prisons to the Quick-Action Closing Fund.

The House and the Senate are scheduled to vote on each other's bills today.

Legislative leaders are hoping to wrap up business on Thursday -- the 81st day of this year's regular session. The state constitution limits the Legislature's session to 60 days unless two-thirds of House and Senate members vote for an extension.

In a 27-6 vote Tuesday, senators approved Senate Bill 689 by Sen. Larry Teague, D-Nashville, that would distribute $5.18 billion in state general revenue to agencies and programs in fiscal 2016. It goes to the House today.

"We are spending more money than ever before," said state Sen. Bryan King, R-Green Forest, who voted against the bill along with five other Republicans.

The Legislature continues to adopt budgets that largely mirror what the governor's office proposes each fiscal year, King said.

In a 92-0 vote, the House approved House Bill 1548, which is identical to SB689.

The budget factors in tax cuts projected to reduce general revenue by $31.5 million in fiscal 2016, according to the Department of Finance and Administration. The tax cuts will reduce general revenue by $104.8 million in fiscal 2017.

The proposed budget would increase spending for the Public School Fund by $49.5 million to $2.16 billion and to the state Department of Human Services by $80.2 million to $1.33 billion in the next fiscal year.

The Department of Correction would get a $14.3 million increase to $336.6 million, and the Department of Community Correction would get a $1.7 million boost to $78.6 million under this proposal. County jail reimbursements for housing state prisoners would increase from $16.4 million to $27.8 million.

The Department of Health would receive a $6.4 million cut to $78.8 million, and the Department of Economic Development would be cut by $1.4 million to $10.6 million, while the Department of Career Education would get a $1 million increase to $4.7 million.

Two- and four-year colleges and technical institutes would receive $733.5 million in the next fiscal year, which is the same amount they are getting in the current fiscal year.

In a 33-0 vote with no debate, the Senate approved SB691 by Teague to distribute roughly $243 million through the General Improvement Fund, according to the finance department.

In an 86-0 vote, the House approved HB1547 by Rep. Lane Jean, R-Magnolia, which is identical to SB691. It goes to the Senate.

The bills would distribute $90 million to the Human Services Department for the Medicaid program, $40 million to the Public School Academic Facilities and Transportation Division, and $20 million to the Arkansas Economic Development Commission for the Quick-Action Closing Fund for incentives to attract industry to the state.

The governor and the Legislature would get $20 million each for discretionary projects.

The bills also would distribute $16.5 million to the Correction Department to provide more space to house inmates; $15.8 million to the Department of Community Correction for transitional re-entry services, more probation and parole officers and accountability court grants; and $13 million to the Department of Correction for lease payments.

The bills also would distribute $5 million to the Education Department for computer-science initiatives and $3 million to the department for the Arkansas Better Chance pre-kindergarten program.

In addition, the measures would distribute up to $50 million in surplus funds to rainy-day funding and up to $30 million to the Quick-Action Closing Fund if the state collects more than forecast in the current fiscal year.

Rep. Kim Hendren, R-Gravette, took issue with $3 million of the House's $10 million allocation from the General Improvement Fund going to rural fire departments, senior-citizen centers, and efforts to fight hunger.

"That's the taxpayers' money. That belongs to the 3 million people in the state of Arkansas, and we're here to represent them equally," Hendren said. "All of us like fire departments. But I have the capability, even at 77 years old, to haul that [money] to pass it to the fire departments or wherever my people in my district feel it needs applied to."

Hendren said he's concerned that the other $7 million would be disbursed through regional development districts and distributed unevenly throughout the state.

Jean pointed out that the funds were being evenly allocated by legislative district and that some parts of the state have more people than others. He said he was open to an amendment to the proposed budget bills, but pointed out that to do so could prevent legislators from leaving town on schedule, and even result in sessions on Saturday or Monday.

"The choice is yours," Jean said.

About $6.3 million of the Senate's $10 million in General Improvement Fund money will be distributed through the regional economic development districts and $790,000 through the state Department of Rural Services for various projects, according to a summary of the distribution of these surplus funds.

About $337,000 of the Senate General Improvement Fund money will go to the University of Arkansas at Fayetteville; about $182,000 to the state auditor; $180,000 to Arkansas State University at Jonesboro; $175,000 to the Economic Development Commission; $142,000 to Arkansas Tech University; $125,000 to the Aging and Adult Services Division; about $102,000 to the Public Defender Commission; $110,000 to the Department of Arkansas Heritage; and $100,000 apiece to the University of Central Arkansas and Arkansas Northeastern College, the Senate's summary shows.

Metro on 04/01/2015

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