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Doug Thompson's Blog

Signing off

Mon, Apr 13, 2009 8:38 am

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I don’t know when our legislative website is going dark, but it will happen. It’s Monday and I’m glad to be back home. So I figured I’d better post some last words.

This session is important for three things. First, the “one-time money” taboo was broken. Reserves that had piled up were used to balance the budget in a recession. This is a good thing.

Second, there were major shift in both what your state government spends and in how it collects taxes. I admit nobody in my household smokes or dips, so I’m not felling the pain here. However the $70 million or so increase in the tobacco tax is far offset and then some by the increase in state health spending. The new trauma center system alone is $30 million, an estimate I consider conservative. Combine that with a $30 cut to general revenues from the grocery tax cut and the $10 million cut to sales taxes on manufacturer’s utilities. It’s almost a wash revenue-wise.

Therefore, the greatly increased health program the Legislature passed is actually a major swift in budget priorities — for the better.

Add to that that the tobacco tax is a dying tax. We can see that already, with revenues coming in at far less than expected. The tobacco tax has a built-in sunset. Tax growth for future years — at least to some extent — will go to offset the dropping of the tobacco tax.

Then there was the third thing: The state’s new lottery. Granted, all the Legislature did was implement a constitutional amendment approved by the voters. By all accounts, though, they appear to have done it well.

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No gyms and not many new high schools

Fri, Apr 10, 2009 2:20 pm

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Went to the Department of Education’s seminar on stimulus spending today. They had a news conference.

New construction of athletic facilities is specifically barred, director Ken James said. Money from the stimulus is also available for new construction, but the timeline is so tight that big new construction projects probably won’t be possible.

There’s a total of $340 million in this stimulus money for schools.

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Big change on school stimulus

Thu, Apr 9, 2009 2:13 pm

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Federal stimulus money for schools can be spent on new construction after all, Gov. Beebe said Thursday.

That’s what the governor’s been told verbally by the Obama administration. As usual, the state’s waiting for written confirmation — a policy that’s looking wiser every day.

This stimulus money includes $80 million for higher education and about $370 million for schools.

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Bookout wins pro tem race

Thu, Apr 9, 2009 10:59 am

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Sen. Paul Bookout, D-Jonesboro, wins the Senate President Pro Tem race in the first round, with no runoff despite having two opponents.

Sens. Mary Anne Salmon, D-North Little Rock, and Ruth Whitaker, R-Cedarville, were the challengers. Vote-counters didn’t release numbers but did say Bookout had a majority.

Sen. Bob Johnson, D-Bigelow, will remain President Pro Tem until the next regular session begins in 2011. Therefore, he will lead the Senate in the fiscal session of 2010.

The House will not elect its next Speaker until March, 2010, after the fiscal session.

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