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Spending the surplus

This morning on KARN, the governor didn't get around to his vendetta against the Arkansas Times. But he did float the notion of rebating some of the mounting state surplus as a sop to people laboring under high fuel costs. We don't think a rebate in Arkansas makes any more sense than the  idea floated by Senate Republicans, and quickly scuttled, for a similar federal rebates. It's crass politics with no lasting value or impact on the situation that created the burden.

We confess. Our inclination is to consider wise investments first. Education, including a huge mandate for more facilities work. Universal health care. Bulging prisons. But if that's wildly optimistic, how about a serious and definitive proposal to use this opportunity to begin a reduction of the sales tax on groceries? That's a gift that would keep on giving to strapped workers, long after a $100 rebate was spent up and gone. Problem: the city and county lobbies, heavily dependent on sales tax revenue, wouldn't want to give up their tax on groceries.

Comments

We know that our school building are crumbling--fix them so you don't have to come back and ask for money later. Those secondary roads that the Gov wanted fixed in December--pick a few and do something. That first responder equipment that the feds never got around to providing to law enforcement? Let's get it NOW.

There have got to be things that the state needs that this money can go for.

Ditto on EY's comments, especially that issue of compatability between emergency equipment for emergency workers. I understand that in NO that the military couldn't talk to FEMA or NO pertsonnel even though they were only a block apart. With the tornado season here lasting 12 months, let's be sure that Arkansas can at least talk to Arkansas.

The reduction of the sales tax would be the more progressive move since the lowest income people pay the largest portion of their income as sales tax, not income tax.

And don't forget, it will be taxable income under IRS rules if it is a rebate so alternative approaches would be best for ease of book-keeping now and on April 15th.

And if we are going to do schools, let's go with a county-wide system of administration unless the overall total of students is in excess of some rather high number, e.g., 2500 or so.

I guess the plan is, give the people some money, take credit for it and pat yourself on the back, force the next Governor to raise the same money again to meet state needs, then criticize him for taxing and spending.

I vote (ha) for eliminating the immoral tax on food; and, if posssible (though I know it's local) all those irritating so-called hamburger taxes.

Does anyone have a dollar figure of what we are talking about? I can think of about a hundred better things to spend it on or invest it in than gasoline...

ARK. BLOG $550 million over two years.

If my rep. or sen. vote for a rebate they won't ever be back to cast another vote again....

This is a no discussion situation...GIVE THE MONEY BACK TO THE PEOPLE WHO PAY THE TAXES ! Getting rid of the State Income tax would also help. WE could then compete with Texas & Tennessee who don't have an income tax. This is the main reason we are can't attract plants. We are a high tax state. Give the tax payers the money back. Nothing to the ones who pay nothing.

The comparison to the federal gas "rebate" is unfair for two reasons: first, and most important, the federal government was going to deficit spend to give me the rebate. It was not returning a surplus but borrowing to repay with future increased taxes. Second, it was further smoke and mirrors because it was called a gas rebate but it was just dollars.

The Gov has finally found a conservative bone spur (thanks, Club for Growth?) and proposed that we quit collecting from the people more that government needs to operate.

Could we spend more? Sure. We always can. But presumably if these other "needs" were important enough we would have appropriated for them and raised taxes to cover that (and we would still have this surplus).

But AT, thanks for being consistent libs. I don't say that as an insult, because it's your right to want bigger government and more spending on more programs. It's just that one man's "investment" is another man's "expense". I appreciate your honesty and consistency.

(I don't suppose your support for the surplus-for-food-tax position has anything to do with Beebe trotting that out this weekend? Why didn't Beebe help Bud Canada pass his bill through the House in 1999?)

ARK. BLOG Maybe because our schools REALLY sucked then and because we weren't running similar surpluses?

Saline, assuming that's your county, you're safe. Broadway, Fite, and Johnson have never met a tax they didn't like. Unless you're in Hutchinson's House district in Northern Saline you should be happy. (Not that your one vote is really likely to turn anyone out, big boy.)

But AT, thanks for being consistent libs. I don't say that as an insult, because it's your right to want bigger government and more spending on more programs.

No liberal president has ever spent more than Bush or created a bigger government.

Does that make the Bush Republicans closet libs or us libs more like conservatives?

Max' original points are right on target. Some more good points have been added to the thread. It ought to be unconscionable for politicians to squander that surplus in little dabs, leaving us no better off than before.

The surplus should be an investment.

We will have natural disasters -- tornados, earthquakes, floods. We cannot rely on FEMA. The cities and counties are poorly prepared.

Who will be our first responders? What resources, planning, and equipment will they have?

Katrina should have taught us something about pointing fingers at local, state, and federal levels of government. So what about OUR state? We have life-saving needs for those investment surpluses. It may require more courage and creative planning than Huckabee is willing to promote.

I'm taking a chance here BUT is it possible that the revenue forecast is so bright because we filed State Income Tax in April instead of May (compared to past years)? Are we comparing apples to oranges?

Theodosius, there was a study done (in conjunction with the Lake View decision, I believe) about the stability of the buildings we educate children in. Someone will have to pay for building improvements. The legislature knew it and chose to do nothing about it in the last session. Just like they didn't do much about "an adequate education" and got hauled back into court. It's essentially "use money of mine you already have and pay for things we know we need" or "give back money now, then take it later to pay for things we knew we needed when we gave you the money back."

EY, there is some truth in what you say, but the study assumed all existing building in all existing districts were needed and should be repaired. I don't know if there was money in the study for Paron High, for instance, but if so that is no longer needed. I think the final draft of the study removed the $8M to bring a horse barn in south Arkansas up to indoor classroom standards, but that is no doubt emblematic of other gross errors in the report. In short, the legislature still really does not know what it needs to spend on buildings.

I'll take my money now and give it back later rather than have them waste it on something else and then still need my money when that figure out how much they need...

I love how this blog mentions spending the surplus on "investments" such as creating bigger agencies and spending more and more and more on education whenever we passed the largest tax increase this states ever seen to fund education just 2 years ago. Why don't we all just send our checks in to the Dept of Ed and get it over with.

One word (RAINY DAY FUND we have more important needs than some cat in a SUV bitching about gas prices..

Max -- why don't you just start ending your postings with "I Believe in Arkansas." And is there a link to your blog on Beebe's website?

ARK. BLOG I take it you're a Hutch supporter, in that he's said he has no plans to remove the sales tax on food. Beebe has generally expressed support for the notion. But he needs to be far more specific with the proposal before we'll stand and cheer. And we'll still entertain alternatives, such as investment in education, etc. But, otherwise, yeah, ask the Beebe campaign why they don't link to us.

The Times has no credibility re: removal of the sales tax on food. Folks like you and Huckabee defeated Amendment 3 in "02 as we were coming out of recession and about to enter this period of sustained growth generating all this bounty. I bet the hungry in AR wished those who opposed Amendment 3 understood supply side economics and the business cycle.

I bet the hungry in Arkansas are not even thinking about Amendment 3.

Wonder if Mike Huckabee spent my 100 rebate when he climbed into his State owned SUV and left the radio station or did he use the State plane to fly from the mansion to KARN ?

Why is anyone listening to this lame DUCK governor he is as obsolete as Ray Winder field ? after ten year Arkansas is still 49th in everything. Not a good record .

Hey widj, you got the point.

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