This is the first
full week of the legislative session even though it was the third overall and it turned out to be quite busy in the
Capitol as Governor Beebe announced the largest economic development project in
the state’s history – a proposed $1.1 billion steel plant in Northeast
Arkansas.
full week of the legislative session even though it was the third overall and it turned out to be quite busy in the
Capitol as Governor Beebe announced the largest economic development project in
the state’s history – a proposed $1.1 billion steel plant in Northeast
Arkansas.
The proposed
plant is projected to create 2,000 construction jobs for 20-months and 525
permanent, high-wage jobs at the plant, which will be located in Osceola.
Recruiting these types of major projects requires a substantial commitment from
the state and local entities through incentives. The state will be considering
whether to offer $125 million in Amendment 82 bonds to support the project.
Amendment 82 refers to the voter-approved addition in 2004 to the state’s
Constitution that authorizes the state to sell bonds in an amount up to 5% of
general revenues to attract a designated “super-project.”
plant is projected to create 2,000 construction jobs for 20-months and 525
permanent, high-wage jobs at the plant, which will be located in Osceola.
Recruiting these types of major projects requires a substantial commitment from
the state and local entities through incentives. The state will be considering
whether to offer $125 million in Amendment 82 bonds to support the project.
Amendment 82 refers to the voter-approved addition in 2004 to the state’s
Constitution that authorizes the state to sell bonds in an amount up to 5% of
general revenues to attract a designated “super-project.”
The
$125 million bond issue will be used to provide a low-interest $50 million loan
to the steel plant and pay for $75 million in site preparation and issuance
costs. Over the next three weeks, the General Assembly will be reviewing the
proposal and will have to determine if the commitment of general revenue to
repay the bonds is a good investment of scarce state resources. In approximate
terms, if the state issues a 20-year bond issue at current tax exempt rates of
3.5% this equates to a payment of $9 million per year. The private developer
will be repaying $50 million so that would like reduce the commitment of general
revenues to around $5.2 million per year. This is compared to almost $40
million in annual payroll produced by the plant.
It
seems likely that the General Assembly will agree to the bond issue as a means
of bringing high-wage jobs to a part of the state that has been struggling with
double-digit unemployment over the past few years.
$125 million bond issue will be used to provide a low-interest $50 million loan
to the steel plant and pay for $75 million in site preparation and issuance
costs. Over the next three weeks, the General Assembly will be reviewing the
proposal and will have to determine if the commitment of general revenue to
repay the bonds is a good investment of scarce state resources. In approximate
terms, if the state issues a 20-year bond issue at current tax exempt rates of
3.5% this equates to a payment of $9 million per year. The private developer
will be repaying $50 million so that would like reduce the commitment of general
revenues to around $5.2 million per year. This is compared to almost $40
million in annual payroll produced by the plant.
It
seems likely that the General Assembly will agree to the bond issue as a means
of bringing high-wage jobs to a part of the state that has been struggling with
double-digit unemployment over the past few years.
With
three weeks in the books, the General Assembly has slowly been filing bills. A
typical session sees around 2,500 bills filed with a little more than half
actually enacted into law.
Sometimes you can see what is important in a legislative
session by comparing how many bills are filed with each committee. The way the
state legislature works is that non-budget bills are routed through one of about
ten A or B committees. The committees review the bills and recommend passage or
issue a do not pass recommendation. Often, making it of committee with a “do
pass” recommendation is enough to ensure its passage on the floor.
session by comparing how many bills are filed with each committee. The way the
state legislature works is that non-budget bills are routed through one of about
ten A or B committees. The committees review the bills and recommend passage or
issue a do not pass recommendation. Often, making it of committee with a “do
pass” recommendation is enough to ensure its passage on the floor.
So what are the committees with the most bills after three
weeks?
weeks?
Public Health – 34 bills
State Agencies – 31 bills
Judiciary – 21 bills
Education – 17 bills
Insurance & Commerce – 7 bills
Transportation – 5 bills
City, County, Local – 5 bills
Agri & Econ Development – 4 bills
Revenue & Tax – 4 bills
Aging, Children & Youth – 3 bills
Public Health is an obvious choice with healthcare representing
such an important if not THE important issue of the 89th General Assembly. The
committee also reviews topics as diverse as abortion, unemployment insurance and
wage law.
such an important if not THE important issue of the 89th General Assembly. The
committee also reviews topics as diverse as abortion, unemployment insurance and
wage law.
State Agencies has a number of bills pending that will change how
a state agency like Natural Resources or Alcohol Beverage Control might operate
as well as a few voting laws. It is also the committee that can refer up to
three constitutional amendments for inclusion on the 2014 general election
ballot.
a state agency like Natural Resources or Alcohol Beverage Control might operate
as well as a few voting laws. It is also the committee that can refer up to
three constitutional amendments for inclusion on the 2014 general election
ballot.
Judiciary often
focuses on crime and punishment in the state. There are a number of proposed
laws pending that deal with criminal penalties and capital punishment.
focuses on crime and punishment in the state. There are a number of proposed
laws pending that deal with criminal penalties and capital punishment.
Education deals
with public and higher education issues and currently has a number of school
choice and charter school related bills pending. The choice bills would address
the ability of public school students to transfer to a school outside of their
home district while the charter school legislation most often seeks methods to
increase the number and viability of charter schools as an alternative to
traditional public schools.
with public and higher education issues and currently has a number of school
choice and charter school related bills pending. The choice bills would address
the ability of public school students to transfer to a school outside of their
home district while the charter school legislation most often seeks methods to
increase the number and viability of charter schools as an alternative to
traditional public schools.