Spending bills adopted, sent to Hutchinson

General-revenue measure’s $133 million increase zooms

The Arkansas Senate and House on Wednesday completed legislative action on bills that would distribute $5.18 billion in state general revenue to state agencies and programs in the fiscal year starting July 1 and about $243 million through the General Improvement Fund for various projects.

They sent the measures to Republican Gov. Asa Hutchinson with legislative leaders hoping to wrap up the session today.

In a 29-4 vote, the Senate approved House Bill 1548 by Rep. Lane Jean, R-Magnolia, that would increase state general-revenue spending by $133 million to $5.18 billion in fiscal 2016.

In an 82-1 vote, the House approved Senate Bill 689 by Sen. Larry Teague, D-Nashville, which is identical to HB1548.

Most of the increased general-revenue spending would go to the public schools, human services programs and prisons.

Funding for the state's higher-education institutions would be unchanged. The state Department of Health would be among the agencies that would have state general-revenue budget cuts.

The general-revenue budget factors in tax cuts projected to reduce general revenue by $31.5 million in fiscal 2016, according to the Department of Finance and Administration. The tax cuts will reduce general revenue by $104.8 million in fiscal 2017.

The House and Senate also approved identical measures that would distribute $243 million through the General Improvement Fund to programs and projects ranging from prisons to the Quick-Action Closing Fund. The General Improvement Fund is made up mostly of surplus funds.

The Senate voted 30-0 to approve HB1547 by Jean. The House voted 78-0 to approve SB691 by Teague, which is identical to HB1547.

The bills would distribute $90 million to the Human Services Department for the Medicaid program, $40 million to the Public School Academic Facilities and Transportation Division, and $20 million to the Arkansas Economic Development Commission for the Quick-Action Closing Fund for incentives to attract industry to the state.

The governor and the Arkansas Legislature would get $20 million each for discretionary projects.

The measures also would send $16.5 million to the Department of Correction to provide more space to house inmates; $15.8 million to the Department of Community Correction for transitional re-entry services, more probation and parole officers and accountability court grants; and $13 million to the Correction Department for lease payments. They also would give $5 million to the Education Department for computer-science initiatives and $3 million to the department for the Arkansas Better Chance pre-kindergarten program.

Metro on 04/02/2015

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