Arkansas Gov. Mike Beebe (D) challenged lawmakers to expand social services and increase funding for education despite the recession, saying the state’s careful budgeting in the past has put it on better financial footing than other states.
“The fallout from the national economic downturn will be our biggest challenge this year and in this legislative session, but our charge and our responsibility remain unchanged,” he told the Democratic-controlled Legislature in his state of the state speech on Jan. 13.
Beebe’s plan calls for a funding increase of $234 per student over the next two years, and streamlining the process to apply for scholarships, including the lottery-funded scholarship program voters approved in November.
The governor proposed a 56-cent tax increase on cigarettes and a tax increase on chewing tobacco, though how much has yet to be determined. He estimated that would bring in $87 million each year, which he intends to use for a statewide trauma system and expanded health coverage for low-income kids.
Beebe also proposed to cut the grocery tax another penny; in 2007 lawmakers approved Beebe’s proposal to cut the tax from 6 cents to 3 cents. Other proposals included setting up a rainy-day fund with surplus dollars to use during economic downturns and adding $50 million to promote economic development.
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