By Doug Thompson
Stephens Media
LITTLE ROCK — Gov. Mike Beebe signed 1-cent reduction in the state sales tax on groceries into law Wednesday, a move he said was as important for maintaining the momentum of tax cuts and establishing faith in government as for directly helping families.
“As important as reducing the grocery tax is, as much relief as it can provide, that’s not nearly as important as keeping your word,” Beebe said during a signing ceremony at the Capitol for Senate Bill 88 by Sen. Bobby Glover, D-Carlisle.
During his campaign for governor in 2006, Beebe pledged to eliminate the grocery tax. He and the Legislature cut the tax in half, from 6 cents to 3 cents, in 2007.
The cut he signed into law Wednesday will cost the state about $30 million annually in general revenue and another $10 million a year in special revenue.
Keeping his word was worth it, the governor said.
“We have to restore faith in representative government,” Beebe said. “I realize that will sound more credible when I’m retired, but I’ll say it when I’m retired.”
Also Wednesday, the governor signed an expansion of the ARKids First program in House Bill 1700 by Rep. Robert Moore, D-Arkansas City.
ARKids First is a state-administered program to provide health insurance to children in families that cannot afford private insurance but earn too much to qualify for Medicaid.
The expansion will extend benefits to an estimated 8,000 more children. ARKids serves about 70,000 now, according to state figures.
Beebe was a state senator and lead sponsor of the bill creating ARKids First in 1997.
“The governor and the Legislature deserve a lot of credit for doing this now, when the economy is not doing well,” said Rich Huddleston, director of the non-profit group Arkansas Advocates for Children and Families.
The ARKids First expansion will be funded through a state tobacco tax increase that went into effect March 1 to pay for a statewide trauma system and other programs in Beebe’s nearly $86 million health care package.
Beebe factored the grocery tax cut into the balanced budget he presented to the Legislature last fall.
