By Rob Moritz
Arkansas News Bureau

LITTLE ROCK — Gov. Mike Beebe will ask the Legislature to cut another one-half percent from the state sales tax on groceries next year, a gubernatorial spokesman said today.

Beebe’s recommendation will be reflected in the balanced budget proposal the administration was scheduled to present Wednesday during budget hearings at the state Capitol, spokesman Matt DeCample said.

One-half cent in sales tax collections generate about $15 million annually, according to the state Department of Finance and Administration.

DeCample said the governor will not propose a tax increase for the regular session that convenes in January, and he said the food tax reduction will be the only tax cut Beebe requests.

At the governor’s behest, the Legislature has cut the grocery tax from 6 percent to 2 percent since Beebe took office in 2007. That amounts to a reduction in general revenue of about $120 million a year and there have been no tax increases to make up the difference.

News of the governor’s food tax proposal came on the same day state human services officials warned the state potentially faces a massive deficit in the state Medicaid program by 2014 without legislative action.

Sen. Johnny Key, R-Mountain Home, said he supports reducing the sales tax on groceries but first wants to see how a further reduction would affect state revenues and other programs, including prisons and Medicaid.

“I’m going to wait and see the full explanation,” Key said. “I want to see how (Beebe) works it into the full balanced budget.”

Rep. John Burris, R-Harrison, said he supports lowering taxes and would “trust the governor’s lead” on how much of a food tax cut to pursue.

“If he says a half-cent is what he recommends, I’d say a half-cent is probably about as good as we can get,” Burris said.