Gov. Hutchinson tells lawmakers plans to cut taxes, reorganize government 'can be done'

FILE - Gov. Asa Hutchinson is shown in this Nov. 7, 2018 file photo.
FILE - Gov. Asa Hutchinson is shown in this Nov. 7, 2018 file photo.

Gov. Asa Hutchinson attempted to solidify the viability of his second-term agenda to lower taxes and re-organize state government during his State of the State address on Tuesday, repeatedly remarking to lawmakers that "it can be done."

The governor also emphasized transformation already underway in the state.

A reduction in taxes for those in the lower- and middle-income brackets, enacted during the Republican governor's first term, has helped spur investment and attract people to Arkansas, Hutchinson said. He also noted an expansion of broadband access in public schools and investments in pre-kindergarten education.

"That is why we work so hard to be competitive in our tax rates: to compete for industry and business located in this state, to build a technology sector, to expand tourism and to improve access to the arts and education," Hutchinson said.

Later, he added: "That is why the third phase of tax cuts is planned for this session."

Hutchinson's proposed tax cut primarily for people earning more than $75,000, earlier estimated to reduce revenues by about $192 million a year, is one of his top priorities for the 2019 session, though some lawmakers, especially Democrats, have questioned whether the state can afford such a cut.

Michael John Gray, the chair of the Democratic Party of Arkansas and a former lawmaker, is planning to deliver a response to the governor's address later Tuesday.

In addition to his tax cut plan, Hutchinson pressed lawmakers to pass re-organization of state government that will reduce the number of cabinet-level agencies. And he asked them to reach an agreement on a highway funding plan.

EARLIER:

Asa Hutchinson has been sworn in for a second term as Arkansas' 46th governor.

The Republican governor took the oath of office before a joint session of the House and Senate on Tuesday before giving his State of the State address.

Hutchinson planned to deliver his inaugural address on the Capitol steps later in day. The Legislature convened on Monday for this year's legislative session.

Hutchinson was first elected in 2014 and won re-election in November, defeating Democratic challenger Jared Henderson.

Hutchinson has called for lawmakers to approve his plan to further cut income taxes and to reorganize state agencies.

— The Associated Press

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