Arkansas Legislative Council – December 18, 2009
Posted on December 18th, 2009
Date & Time: Friday, December 18, 2009 at 9:00 AM
Location: Room 171, State Capitol
Committee Information: Members on Committee
Agenda
Attachments
The Council was established by Act 264 of 1949 to collect data and information upon which legislative decisions will be made during regular session of the General Assembly. The Bureau of Legislative Research of the Legislative Council is a service agency within the legislative department of government. All members of the General Assembly have access to the Bureau of Legislative Research. The Legislative Council is the supervisory committee for the Bureau of Legislative Research, the Council coordinates the activities of the various interim committees and through the various committees provides legislative oversight of the executive branch of government. The Council consists of 36 regular members which is comprised of 20 House members and 16 Senators. In addition there are 24 ex-officio voting members and 5 ex-officio non-voting members.(A.C.A. 10-3-301)
9:05 am – Meeting called to order and minutes from last meeting approved. Here are the minutes: Exhibit C – Minutes – 11-20-09
9:06 am – Richard Wilson, Assistant Director of Research Services in the Bureau of Legislative Research. You can see the revenue report here. Exhibit D.1 – BLR Monthly Revenue Report. Senator Kim Hendren said that we keep getting these reports with negative numbers, but keep getting told it is going to get better in the near future. He wanted to know when we are going to do something about this or if we intend to keep going and wait for the taxpayers or China to bail us out. Rep. Reep asked for clarification on values. Rep. Pennartz asked a leading question pointing out that the tobacco tax is bringing in more money than was budgeted for the trauma system.
9:14 am – Richard Wilson is indicating that there is not likely to be a rapid recovery due to mostly unemployment.
9:16 am – The following graph is mislabeled in the agenda, it does not concern the unemployment trust fund. This graph is the U.S. Business Cycle Downturns from 1929 to 2009. Exhibit D.2 – Unemployment Insurance Trust Fund Information. This graph demonstrates the how this is the worst economic situation in duration since the Great Depression.
9:20 am – Mr. Artee Williams is currently reporting on the current indebtedness to the federal government for the unemployment trust fund. Mr. Williams said that by the end of the year we will be $223 million in debt. Sen. Smith made the point that this means that unemployment taxes are going to be going up and going up drastically. Mr. Williams countered that we don’t know how much that will be because the federal government MAY not charge interest on that debt and MAY not require a complete repayment. [In otherwords, this MAY get rolled into the insane national debt that our children and grandchildren will have to pay.]
9:26 am – Sen. Teague is asking how much the unemployment trust fund should be in order to be considered solvent. The Title 12 unemployment trust fund should be around $700 million up to about $1 billion (with a “B”)
9:29 am – Sen. Hendren has discovered that the prediction that the unemployment trust fund will $353 million by the end of the year 2010. Sen. Hendren is asking how this fits into our balanced budget requirements in our State Constitution. The response is again that this may be paid by the federal government. The question of Constitutionality was deftly avoided.
9:33 am – Senator Hendern is asking about fraud in this system. He still hasn’t got his question about balanced budget requirement. The room is very loud. Much talking and activity in the room.
9:35 am – Rep. Hutchinson asked about the State Constitutionality of this debt. The question was deferred to Richard Wiess, Director of DF&A. Sen. Broadway redirected with a question about what the department is doing in communications with DC to solve this problem that 24 other states are facing. Response: Listening sessions and meetings are beginning to take place, their group will be going to talk to Congress next month.
9:39 am – Rep. Hobbs is asking that even if Congress “forgives” the debt of the trust fund, will there still be requirements to increase the unemployment trust fund. The response is the affirmative.
9:44 am – I asked where the errors to caused this situation in the first place, and even if we increased the unemployment taxes and begin to create the solvency reserve recommended of $700 million to $1 billion, what activity is in place to prevent the trust from being raided again by increasing unemployment benefits. I asked what went wrong, was the trust fund mismanaged by the legislature or due to recommendations by the department.
9:45 am – He tried to redirect to the point that we did not expect this economic downturn. I countered that by his own words that even before the economic downturn he knew that the $700 million to $1 billion was the balance required for solvency, but the trust had never been above about $225 million. Clearly this mismanagement by the department or the legislature created the current situtation. I was cut off by the chairman.
9:55 am – Richard Wiess presented the revenue forecast. AMAZING! Guess what, they predict we will have a 2.0 percent growth rate next fiscal year. Here is the forecast: Exhibit D.3 – DFA Official Revenue Forecast. I wonder who seriously believes that we should create our next budget based upon such a rosy forecast? The importance of this is big. The spending created in the upcoming budget session will be based upon this forecast. If the forecast predicts additional revenues, the budget will have increased spending. There is nothing conservative about this budget forecast.
10:06 am – We are currently reviewing the subcommittee reports. Here are links to the various reports: Exhibit F.1 – Rules and Regs Subcommittee Report, Exhibit F.8 – PEER Subcommittee Report, Exhibit F.10 – Review Subcommittee Report, Exhibit F.11 – Personnel Subcommittee Report.
10:10 am – Rep. Dismang is asking that we hold additional hearings to deal specifically with the Unemployment Trust Fund. The chairman agreed to see that this is placed on the agenda. Sen. Altes asked that the chair of PEER be asked to chair these meetings.
Other reports given today are here: Exhibit H.1a – ABA Report – November 2009, Exhibit H.1b – Capitol Zoning District Report, Exhibit H.1c – ADCC Population Report 12-7-09, Exhibit H.1d – ADC Population Report 12-11-09, Exhibit H.1e – DFA Monthly Revenue Report – November 2009, Exhibit H.1f – DHS-DCFS Placement Report, Exhibit H.1g – DHS- Medicaid Report, Exhibit H.1h – ASP Report, Exhibit H.2a – Workforce Services Report – Unemployment Insurance – Training Fund, Exhibit H.2b – Workforce Services Report – Special Fund, Exhibit H.3a – ATRS Request for Review, Exhibit H.3b – Travel Report, Exhibit I.1 – Health Department update, Exhibit K.1 – ISP-2009-202
10:16 am – Rep. Lowery is asking the Arkansas Legislative Council to formally go on record to object to the Free Thinker’s Display on the Capitol grounds. Very emphatic “Aye” rose up. The only audiable “Nay” was voiced by Rep. Nancy Blount.
10:19 am – Rep. Greenberg is presenting his interim study proposal. It was approved.
10:20 am – Meeting adjourned.
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Highway Finance: New Revenue Subcommittee – December 16, 2009
Posted on December 16th, 2009
Date & Time: Tuesday, December 16, 2009 at 10:00 AM
Location: Room 272, State Capitol
Committee Information: Members on Committee
Agenda
10:06 am – Meeting called to order by Chairman Jim McKenzie. The minutes from the previous meeting were adopted as distributed.
10:08 am – We are currently reviewing the new policy briefs. The first one is an increase in Income Tax. In this policy suggestion, the so-called advantages are: “It is elastic and responds well to inflation without legislative adjustment. It is progressive, taxing those with a higher ability to pay at a higher rate. The so-called disadvantages are: “It is weak with regard to economic efficiency (it is inequitable) because it separates the users from the payers. The traditional recipients of general fund revenue have in the past strongly resisted using those revenues for transportation. The revenue potential is limited.” This tax requires a 75% supermajority of both houses to raise.
10:13 am – Now we are talking about a Gasoline and Diesel Excise Tax. The so called advantages. The so-called advantages are: “The gasoline and diesel excise taxes are a user fee and are the traditional way of funding roadway improvements. It is consistent with the user pay principle that has been the foundation of America’s highway system. Administration costs are low.” The so-called disadvantages are: “The motor fuel excise taxes are inelastic, therefore their purchasing power will decrease over time. Construction costs are projected to rise more rapidly than in the past two decades, eroding purchasing power more quickly. New federal fuel efficiency standards will reduce the productivity of the gasoline excise tax at an increasing rate as the next decade progresses. As alternative fuel vehicles, particularly plug-in hybrids and electric vehicles become more prevalent, motor fuel excise taxes will be unable to fairly capture the costs of these vehicles to the road network. Diesel fuel taxes may not be set at a rate that fairly captures the costs of heavy trucks to the road system.” This tax would require a 75% majority of both chambers to raise this tax.
10:21 am – The policy brief of Public Private Partnerships/Tolling was covered very very briefly even though it is one of the longest. The thought is that it is only applicable and successful in large metropolitan areas.
10:23 am -There is alot of discussion about the policy brief called the “Equitable Share for Heavy Trucks.” The policy brief claims trucks pay 6 cents/mile. Trucking industry records shows that they pay nearly 15 cents/mile.
10:28 am – Rep. Jon Woods sitting here beside me. He said, “If half the state knew what we were discussing today, the capitol would be overwhelmed with calls.” I agree. That is why I am doing this.
10:30 am – It seems that there is a lean toward some type of sales tax. Mr. Mike Wilson suggest that we may need to consider temporarily withdrawing from the streamline sales tax agreement. The phase in process hits snags due to the SSTA.
10:32 am – We are currently reviewing a computer model that demostrates the results of the revenue generating taxes. This is a spreadsheet that I should be able to get into my little fat fingers. I am wondering if there are any dynamic adjustment factors in the model. If I get the opportunity I will ask.
10:37 am – This model uses as a baseline of $290 million and includes purchasing power in the future out to 2020.
10:42 am – There is a model about the carbon tax. It was modeled as being phased in over 4 years of .25 cents per standard measure of carbon in the fuel being used.
10:49 am – Amost everyone is talking about significant inflationary increases. I wonder if that is because they know the impact of massive federal deficit spending. If so, they are not saying it.
10:52 am – One of the “advantages” of a carbon tax is that it is a “new” tax and can get through the Constitutional loop hole created by an unelected judge. New taxes only need to be passed by a simple majority rather than the supermajority required to pass or increase a tax. If the TEA Party is looking for something to get behind, a constitutional amendment to the state constitution to restore the original intent would be a great idea to consider.
10:57 am – There seem to be alot less willingness to speak up in support of new taxes these days like there were when we first started this committee. The chairman called for support and suggestions for any of the proposal. He was met with silence and someone said, “Don’t everybody speak at once..”
10:59 am – Mr. Mike Wilson suggests that instead to deciding which to promote why don’t they start eliminating a few of they do not think will work.
11:01 am – The point was made that Arkansas ranked like 8th nationallly in income taxes and perhaps that would not be one that should be considered.
11:05 am – Rep. Pennartz asked for a single table for the amount raised by each tax and the amount of the tax itself.
11:10 am – Committee adjourned.
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Legislative Joint Auditing – December 11, 2009
Posted on December 11th, 2009
Date & Time: Tuesday, December 11, 2009 at 10:00 AM
Location: Room 171, State Capitol
Committee Information: Members on Committee
Agenda
The duties of the Legislative Joint Auditing Committee shall be to provide for the auditing of each department, institution, board, commission, office, and agency of the state government for the purpose of furnishing the General Assembly with information vital to the discharge of its constitutional duties. (A.C.A. 10-3-407)
All reports mentioned in this post can be found here.
9:10 am – Meeting called to order by Rep. Johnny Hoyt. Minutes of November 12, 2009 adopted.
9:11 am – Rep. Monty Betts presented the Executive Committee Report which was adopted without question or comment.
9:12 am – Rep. Mike Patterson presented the report from the Committee on Counties and Municipalities. The report was adopted without question or comment.
9:16 am – Rep. Eddie Cheatham presented the report from the Committee on Education Institutions.
9:17 am – I can hear Christmas carols in the committee room coming from the Capitol Rotunda. Sounds beautiful. Children’s voices fill the capitol this time of year. I love it, this place comes alive like no other time.
9:18 am – Report by Rep. Cheatham adopted without questions or comments.
9:20 am – Rep. Jim House presented the report from the Committee on State Agencies. This report was adopted without question or comment.
9:22 am – Gail Stone, Executive Director of the Arkansas Public Employees Retirement System is presenting a report regarding instances in which county officials have retired and returned to work for the county.
9:24 am – So far there are seven county officials who have refused to return the questionaires and have hired an attorney.
9:26 am – In the report the following quote, “Despite some of the sensationalist media coverage to the contrary, we are happy to report that the number of elected officials that failed to properly vacated office prior to recieving APERS benefits is quite small” Yeah, that right there is an internal investigation conducted without bias.
9:30 am – Senator Bobby Glover made the point that with the drop, salary, and retirement combined, some of these guys were not double dipping, the were TRIPLE DIPPING.
9:31 am – When asked what laws should be put in place to prevent this in the future, APERS Executive Director responded that nothing needs to be done.
9:33 am – Rep. Gaskill asked if not for the courage of Rep. Kerr would this have goine on forever? APERS Executive Director confirmed that it probably would have just gone on and on.
9:36 am – Sen. Farris said that somebody took a law to do a good thing (allow the state to hire retirees for positions that are hard to fill) and snuck around the back door to find a way to abuse the system.
9:38 am – This is especially true of elected officials. If an elected official “retires” or otherwise “terminates” their employment, it is obvious to anyone that they have to resign and leave office.
9:41 am – Rep. John Burris is asking questions that are being avoided and unresponsively answered by the APERS Executive Director. Anytime you see this kind of obstruction, you can bet that more intensive investigation and diligence to get to the bottom of the problem is necessary. George Hopkins of the Arkansas Teacher Retirement system gave the honest and unobstructive first reaction to this. His position WAS one that was intent on providing the ethical resolution of this. He has since pullled back from that position. Gail Stone, Executive Director of APERS appears to be dragging out and obstructing this legislative investigation.
9:48 am – Ms. Stone initially claimed that no new laws were necessary, but after a line of questioning from both Rep. Burris and Sen. Jeffress it became clear that APERS did not consider particularly bad abuses to be “not illegal”. Doesn’t that point to a need for legislation?
9:52 am – Sen. Jeffress is asking if it would be appropriate to have an APERS perform a survey of all “Agency Heads and 99s”. He stated that in the form of a motion. There is currently wordsmithing going on. Ms. Stone said that she would comply “as much as I am allowed” then quickly said she misstated that and agreed to fully comply. What does that mean? “As much as I am allowed” by whom? Who would not be allowing her to comply.
9:57 am – Discussion is currently on the motion to perform the review. Rep. English asked that the motion to be amended to go back 3 years instead of one year for the investigation.
10:02 am – It is funny to me that legislators who never have concern for cost to taxpayers suddenly have a concern for cost when they want to use the argument to obstruct an investigation. Jim House is saying that he thinks this would be to costly too expand the investigation.
10:05 am – Motion by Rep. English to amend to the motion to go back 3 years instead of 1 year passed.
10:06 am – The point was made that even when this investigation is made we would not have names to connect to the violation due to confidentiality. That right there would be a good place to create some sunshine in government. This is an area that needs some openness and accountability.
10:08 am – Sen. Jeffress is asking that audit and APERS verify those who retired if they gave up the emollents of office (cell phone, car, etc.) during the waiting period before they came back to work.
10:11 am – The motion passed. A role call was made. Rep. Cheatham made the motion to roll call to kill the motion to help obsure and hide the facts and prevent this investigation. Rep. Allen Maxwell seconded the motion. Mark it down folks. This is the tricks used to prevent openness and accountablity in government. Are you tired of this kind of government?
10:17 am – Rep. Hoyt decided to use the authority of the chair to place that request for information without a vote of the committee. I am glad that Rep. Hoyt did that, but I find it sad that he had to do it that way. Some members don’t know how big a favor Rep. Hoyt did for them.
10:24 am – Sen. Kim Hendren is making the point the shroud of secrecy is NOT good government.
10:28 am – Sen. Farris asked Gail Stone if she was concerned enough about this situation when if first come up to ask about the appropriateness of it. She responded, “Not in an official capacity.” Sen Farris followed up and asked, why she maded that inquiry. She seemed very stressed, slowly answered … “it seemed they were winking at the law.”
10:37 am – This whole meeting I have been wondering why Gail Stone, Executive Director of APERS, seemed to be obstructing this legislative inquiry with guarded answers. Well, there is more to the story, perhaps she is not the “bad guy”. Apparently the Chairman of the Board of Directors for APERS is currently under investigation for this very thing. This person is Larry Fraetsi (spelling?) currently the Jefferson Co. Collector. So a person who is Ms. Stone’s boss has a direct conflicting interest in the situation. It seems a resignation is in order. I now feel sorry for Ms. Stone. She is in a tough position.
10:43 am – David Webb is presenting the report for the Department of Education Grants. Report can be found here Sen. Jeffress asked that the report be provided to the Education Committees. Rep. Nix asked how specific the limitation on the usage of these grants. Apparently those which are ARRA (Stimulus) Grants are very restrictive. Rep. English is asking about how the Title I Grants work, a response will be provided to her in a personal meeting.
10:49 am – Kim Williams is providing the Audit Report for Lonoke County. This report can be found here
10:57 am – Meeting adjourned.
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Joint Committee on Advanced Communications and Information Technology – December 8, 2009
Posted on December 8th, 2009
Date & Time: Tuesday, December 8, 2009 at 10:00 AM
Location: Room 151, State Capitol
Committee Information: Members on Committee
Agenda
The committee shall make continuing studies concerning the development of access to statewide public telecommunications network for distance learning, telemedicine, and universal access for governmental entities, and other issues concerning advanced communications and information technology, either initiated by the committee or referred to it by either house of the General Assembly for study, in the interim between sessions of the General Assembly. This committee shall review any plan developed or updated by a public instrumentality. The committee may seek the assistance of the Office of Information Technology of the Department of Information Systems in conducting this review. (A.C.A. 10-3-1704) The Committee shall exercise leadership in the interim between legislative sessions and shall attempt to coordinate for the various committees of the General Assembly the various activities, studies, and planning activities of the General Assembly which relate to the development of access to a statewide public telecommunications information infrastructure. The Committee shall cooperate with the Governor, with public secondary and postsecondary institutions of education, with the appropriate administrative agencies of this state, with legislative and administrative agencies and institutions of other states, and with the federal government and others in the planning and development of access to a statewide public telecommunications infrastructure linking institutions, businesses, government agencies, schools, hospitals, libraries, communities, and other public and private entities to the national information infrastructure. The Committee shall exercise appropriate legislative oversight of the operations of the Department of Information Systems. The staff of the Joint Committee on Advance Communications and Information Technology shall serve as staff liaison to the Department of Information Systems Advisory Board and the Department of Information Systems Steering Committee.
10:00 am – Meeting called to order by Senator Capps, Chairman.
10:01 am – The minutes from the August 6 and November 5th & 6th meetings.
10:08 am – Ken Gibson, Chief Information Officer for the Arkansas Department of Emergency Management is giving an overview of the Emergency Notification System to Arkansas citizens.
10:17 am – Questions from Rep Wood and Rep. Nix about municipal specific information.
10:18 am – Senator J. Jeffress is asking if the emergency notification system is using only land line numbers or if it also includes cellular. Mr. Gibson said that the system uses only 911 contacts for calls, but text messaging will go out to cellular users.
10:21 am – The Arkansas Dept. of Emergency Management does not make recommendations to what type of notification system a city should use, but they do recommend to citizens that you get a NOAA radio regardless of the system your city uses.
10:26 am – Don McDaniel, Network Manager of the Arkansas Department of Information Systems is presenting information on the Federal Broadband Stimulus Program Overview. This program is being administered through the U.S. Department of Agriculture’s (USDA) Rural Infrastructure Development Programs.
10:34 am – The best source of information about this program can be found at www.broadbandusa.gov.
10:37 am – Connect Arkansas is presenting information on the American Recovery & Reinvestment Act (Also known as “the Stimulus”) grant for the National Telecommunications & Information Administration of apporximately $2.1 million to Connect Arkansas ($1.6 million for broadband data collection and $500,000 for broadband planning and mapping activities).
10:47 am – Apparently Arkansas has applied for about $17 million in grants, other states have on average applied for $88 million. Because Arkansas is so far ahead of other states in developing this concept, it is hoped by Connect Arkansas that Arkansas will be obtaining additional future funds.
11:04 am – We are still meeting, I just have little interest in reporting on the little pigs oinking and jockeying for a position at the trough.
11:23 am – Committee meeting adjourned.
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Arkansas Should Do This!
Posted on December 2nd, 2009
South Carolina Now 24th State to Defend Health Care Choice
Washington, D.C.—The American Legislative Exchange Council (ALEC), the nation’s largest individual membership association of state legislators, congratulates South Carolina State Representative Tim Scott for pre-filing a constitutional amendment to protect the right of individuals to make their own health care choices. South Carolina now becomes the 24th state where legislators have introduced, or will introduce, legislation modeled after ALEC’s Freedom of Choice in Health Care Act.
“Congress should not expect the states to blindly accept a federal health care reform bill that just keeps getting longer and more complicated at every turn. We know that creating new mandates for individuals and employers will not reduce costs or increase competition, it will trample on the rights of individuals to make their own health care choices and hurt our economy,” said Iowa Representative Linda Upmeyer, minority whip, family nurse practitioner, and chair of ALEC’s Health and Human Services Task Force.
The proposed South Carolina constitutional amendment preserves the rights of individuals to pay directly for medical care—something not allowed in single-payer countries like Canada—and prohibits any individual from being penalized for not purchasing government-defined insurance. Any state attempt to require an individual to purchase health insurance—or forbid an individual from purchasing services outside of the required health care system—would be rendered unconstitutional. The measure may also cause a federalism clash if Congress passes a law with either of these provisions.
“This is not a battle that hasn’t been fought before or won before,” said Christie Herrera, health policy director for the American Legislative Exchange Council, a state legislator group coordinating the effort.
“States are allowed to give greater constitutional protection than what is provided for in the U.S. Constitution. The U.S. Constitution provides a floor, not a ceiling, for the preservation of individual rights,” Herrera added.
Similar constitutional amendments have been filed or pre-filed in twelve states—Arizona, Florida, Indiana, Michigan, Minnesota, New Mexico, North Dakota, Ohio, Pennsylvania, South Carolina, West Virginia, and Wyoming. An additional twelve states have indicated their intent to introduce this legislation—Alabama, Alaska, Georgia, Kansas, Louisiana, Missouri, Mississippi, New Hampshire, Oklahoma, Montana, Tennessee, and Utah. Arizona’s measure, which passed the legislature in June, will be put before voters on the 2010 ballot.
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