Bills paving way to raises fly through Legislature

Rep. Bill Gossage, R-Ozark.
Rep. Bill Gossage, R-Ozark.

Bills eliminating lawmakers' eligibility for up to $14,400 a year in reimbursements for certain office-related expenses sailed through the Arkansas Senate and House of Representatives on Thursday.

The identical measures dashed through the Senate and House with no debate or fanfare -- three days after a citizens commission signed off on substantial raises for state lawmakers in return for them axing these office-related expense reimbursements.

The bills will now go to Gov. Asa Hutchinson. They will become effective after he signs them.

The governor will sign them soon, said Hutchinson spokesman J.R. Davis.

Legislators' pay will climb from $15,869 to $39,500 a year on the basis of the citizens commission's decision Monday.

The annual salary for the speaker of the House and Senate president pro tempore will increase from $17,771 to $45,000.

Some legislators have downplayed the significance of their pending pay raises of more than $23,000 each, which will be taxable income, noting that the $14,400 for office reimbursements had been untaxed.

"From my perspective, I don't see much of a difference," said Sen. Jason Rapert, R-Bigelow, who owns a financial services company.

Some lawmakers have estimated that the pay raises will net them a few thousand dollars a year more than they get now.

Other lawmakers have argued that the pay raises will encourage people, other than businessmen and retired people, to run for the Legislature.

In addition to their salaries, lawmakers on average have received about $30,000 a year for per diem (a daily allowance for lodging, meals and incidentals), reimbursements and other expenses. Some lawmakers have collected more than $50,000 in these payments a year during the past several years.

The Senate voted 34-0 to approve House Bill 1793 by Rep. Bill Gossage, R-Ozark.

The House voted 89-0 to approve SB1049 by Senate President Pro Tempore Jonathan Dismang, R-Searcy.

In addition to their state-paid salaries, lawmakers still will receive per diem and mileage payments for attending legislative meetings.

Most lawmakers each get $150 per diem for attending meetings in Little Rock. Those who live within 50 miles of the Capitol are paid $61 per diem. Lawmakers also receive 57.5 cents for each mile traveled.

Under these bills, lawmakers who are chairmen of legislative committees still will be eligible for up to $3,600 a year in office-related expense reimbursements. Those who are committee vice chairmen will be eligible for up to $2,400 a year, and those who are chairmen of legislative subcommittees will be eligible for up to $1,800 a year.

On Monday, the seven-member citizens commission voted 5-2 and approved its Feb. 2 recommendations to raise the salaries for state elected officials except for the part-time lieutenant governor post. It kept that salary at $42,315.

Chief Justice Jim Hannah; former House Speaker Davy Carter, R-Cabot; former Democratic Gov. Mike Beebe; and Dismang appointed the commission's members under Amendment 94 to the Arkansas Constitution.

Amendment 94, approved by voters in November, also extends the term-limit terms for lawmakers, prohibits state elected officials from accepting certain gifts from lobbyists, and prohibits direct campaign contributions from corporations and unions to state elected officials.

The pay-raise resolutions signed by members of the Independent Citizens Commission, were delivered to state Auditor Andrea Lea on Thursday, Lea said Thursday night.

She said she certified the resolutions, and they'll become effective after 10 days. They will not be retroactive.

The commission also approved pay raises for the governor, from $87,759 to $141,000; attorney general, from $73,132 to $130,000; secretary of state, from $54,848 to $90,000; treasurer, from $54,848 to $85,000; auditor, from $54,848 to $85,000; land commissioner, from $54,848 to $85,000; chief justice, from $161,601 to $180,000; Supreme Court justices, from $149,589 to $166,500; appeals court chief judge, from $147,286 to $164,000; Court of Appeals judges, from $144,982 to $161,500; circuit judges, from $140,372 to $160,000; and state district judges, from $125,495 to $140,000.

State officials have estimated that the pay raises will cost the state about $5 million a year.

Hutchinson said the salary increases "are part of essential services.

"So my understanding from DF&A [the state Department of Finance and Administration] is that there is adequate money to cover that within the general services. It won't be a problem with our general revenue budget," he said.

Information for this article was contributed by Claudia Lauer of the Arkansas Democrat-Gazette.

Metro on 03/20/2015

Upcoming Events