Nevada County Picayune and Gurdon Times Newspaper Archive

Senate Passes Operating Budgets; House Proposes Tax Amnesty

The legislature has approved numerous state agency budgets, and last week legislators were putting the final touches on the largest and most important funding measures.

The governor has recommended that the Public School Fund, which accounts for about 62 percent of the revenue of Arkansas schools, be $1.329 billion in fiscal year 1998 and $1.369 billion in fiscal year 1999. Some legislators, however, may try to have those amounts increased by the Joint Budget Committee.

Public schools receive 47 percent of the state's general revenues.

The Joint Budget Committee recommended funding for state-supported institutions of higher education of about $443 million in fiscal 1998 and $476 million in fiscal 1999. Those amounts are higher than the governor's recommendations.

Higher education receives 15 percent of state general revenues.

The governor's recommendation for funding the state share of Medicaid is about $304 million in fiscal 1998 and $315 million in fiscal 1999. The Joint Budget Committee had not made a final recommendation on the Medicaid budget.

Medicaid is a government-subsidized health care program that pays for 75 percent of the nursing home care in Arkansas, for medical care of the poor and for the care of people with disabilites. Generally, the state pays for 25 percent of Medicaid costs and the federal government pays the remaining 75 percent.

The state Human Services Department administers Medicaid and other social programs.

Human Services receives 20 percent of the state's general revenues. With those revenues the department pays for Medicaid, food stamps, welfare, treatment of drug and alcohol abuse, rehabilitation and other social programs.

The correction department, which operates prisons and oversees inmates on parole, will get one of the largest budget increases because of the dramatic growth in the state's prison population. The department's annual operating budget is expected to increase from $127 million to $145 million.

The budget increase will allow the department to add 2,200 beds, bringing its capacity from about 8,100 to about 10,300. The Arkansas prison population is almost 10,000 inmates.

Because there is insufficient space for them in state prisons, about 500 are being housed in Texas prisons and more than 500 are in county jails. Also, more than 500 are in temporary beds. The average cost of holding inmates in Arkansas is one of the counrry's lowest, $35.96 per inmate per day.

In other news last week, the Joint Committee on Public Retirement gave a do pass recommendation to House bill 1266, known as the "28 and out" bill for teachers, because it allows public school teachers to retire with full benefits after 28 years. Now, they must teach for 30 years to qualify for full retirement benefits.

The bill also raises future benefits slightly for active teachers. It also raises benefits for retired teachers 0.7 percent.

House and Senate committees also gave favorable recommendation to bills that would streamline the process for renewing car tags. The measures also would eliminate the annual inspections that motorists must go through.

STATE HOUSE

State representatives in the ninth week of the 81st General Assembly's regular legislative session aproved bills to require background checks for those who care for the elderly and the disabled and to grant new authority to pharmacists to administer medicines, such as vaccines.

Also through Thursday, March 13, the House approved bills to offer a one-time amnesty to taxpayers who failed to report taxes due, to strengthen involvement of the Arkasnas State Police in the investigation of child and domestic abuse cases, to designate the state Capitol as a smoke-free facility and to extend a new retiremnt benefit to local police and fire fighters.

Rep. Dennis Young of Texarkana was lead sponsor of the bill requiring the background checks of those who care for the elderly or for the disabled. He said the proposal had been studied for two years and generally would apply to those who work in home health, in hospices or in nursing homes.

Rep. Percy Malone of Arkadelphia was lead sponsor of the bill to authorize trained pharmacists, while in consulatation with physicians, to administer medicines, including the giving of vaccination shots. Such authority now is provided to pharmacists in 17 states, he said. The legislation also would allow pharmacists to work with physicians to adjust a patient's drug therapy.

Young also sponsored the bill to offer a one time tax penalty amnesty program to allow taxpayers who failed to report taxes due before January 1, to voluntarily apply for amenesty and avoid paying penalties or being subject to prosecution. To receive amnesty, taxpayers would have to apply between September 1 and November 30, and would have to pay the previously unreported taxes plus interest. The program could bring as much as $3 million to the state treasury, Young said.

Rep. Carolyn Pollan of Fort Smith was lead sponsor of the bill to establish a Family Protection Unit within the Arkansas State Police to investigate child and domestic abuse. Many of these investigations now are conducted by the Department of Human Services personnel, who in some instances may face conflicts in trying to preserve families while investigating instances of abuse.

Rep. John Miller of Melbourne was lead sponsor of the bill approved by the House to designate the state Capitol building as a smoke-free facility. Violation of the smoking ban could result in fines of between $25 and $100.