By Doug Thompson
Stephens Media
LITTLE ROCK — Arkansas state government will be allowed to use all of its share of the federal stimulus package as a one-time windfall, with none of the money going to create ongoing programs for which state taxpayers would have to foot the bill in future years, Gov. Mike Beebe said Tuesday.
The governor said he has received verbal assurances from the Obama administration that the state can spend its $2.1 billion portion of the $787 billion federal stimulus package without committing itself to creating new programs.
This was particularly a worry in extending unemployment benefits, but the stimulus package has enough options to avoid open-ended state commitment, Beebe said.
“There’s been a lot of talk about whether the recovery act should have been passed or whether it should have included various parts of it. None of that’s our business. That decision was made in Washington, D.C.,” Beebe said during a Capitol news conference while flanked by more than 20 state department heads who will administer funds from the stimulus package.
Lawmakers in at least 15 states are sponsoring resolutions asserting state sovereignty, in effect the right to ignore any federal law or policies they deem unconstitutional, including the stimulus bill.
In Arkansas, Rep. Debra Hobbs, R-Rogers, has filed House Concurrent Resolution 1011, which asserts Arkansas’ claim of sovereignty under the Tenth Amendment. The measure demands that the federal government “cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.”
Hobbs said the federal stimulus was part of her motivation.
“We have to remember where the obligation comes from. The debt is being placed upon citizens, including the citizens of Arkansas,” Hobbs said. “We cannot afford to say no to the stimulus package, but again, if they’re going to ‘give’ us some money, the states should be able to see where that money is needed.”
She said she’d be in favor of refusing the stimulus money if Arkansans did not have to incur the debt, “but if we can have the money to offset the state needs and hopefully keep our taxes low,” it could help.
The House Committee on State Agencies and Governmental Affairs is set to consider the resolution Wednesday.
Beebe said Tuesday the state’s function in relation to the federal stimulus package is to spend the money responsibly. The state’s top priorities for stimulus spending are “to create or retain jobs and giving the taxpayers something for their money,” the governor said.
Also Tuesday, members of Arkansas’ congressional delegation announced the release of $350 million in stimulus funds for use on highways, roads and bridges. State highway officials have said the funds would be spent on projects across the state.
The administration plans to have a Web site online as early as Monday to show taxpayers how the money is being spent, and also to accept requests for aid and field other inquiries.
The state hopes to have a Web site up as early as Monday to show taxpayers how the money is being spent and also to accept requests for aid and other inquiries.
“This is one-time money,” Beebe said. “When it’s gone, it’s gone.”
In Medicaid, for instance, the federal stimulus money will help eliminate a $58.4 million shortfall next year in state spending for the health care program. That money was going to come out of state reserve funds but will now come out of the stimulus money, Beebe said.
Medicaid already has $108 million in stimulus funds available for use, state Department of Human Services Director John Selig said. In all, the Medicaid program is to receive more than $700 million in stimulus funds.
Beebe said he has designated the state Department of Finance and Administration as the chief “go-to agency and policeman” of stimulus package spending. All state agencies will “segregate” accounting of stimulus money to make sure none of it is spent to create any ongoing obligations and to make sure “that the news media and the whole world can follow how it’s spent,” he said.
One of the biggest misconceptions about the stimulus package is the belief among many that a check is coming to each family in the mail, the governor said.
“We’ve had a lot of calls about ‘when am I going to get my check,’” Beebe said. “This is not like what Congress did a year ago when they sent everyone a check.”
There is tax relief in the package — another $2 billion worth for Arkansas — but it will go to individual taxpayers in the form of smaller income tax withholding.
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On the Net:
www.recovery.arkansas.gov
