AACF applauds proposed increases in child welfare and mental health, but is disappointed with lack of investment in health insurance and child care.

LITTLE ROCK - Gov. Mike Beebe's proposed budget sticks to his commitment to begin turning around the state's broken child welfare and children's mental health systems, Arkansas Advocates for Children and Families said today.

However, his budget doesn't provide a strong enough safety net for children and families suffering from the economic downturn, the non-profit agency said. Access to children's health insurance and child care is critical to helping families who are losing jobs and homes to stay out of poverty.

"Gov. Beebe said he was committed to improving the child welfare and children's mental health systems and his budget priorities reflect his commitment on these issues," said Rich Huddleston, AACF executive director. "His recommendations are a good first start for turning those systems around. On the flip side, we are disappointed that the budget does not address two major economic issues facing working families: the lack of health care coverage and the lack of access to subsidized child care."

AACF also supports Gov. Beebe's idea to invest in a state rainy-day fund in case our economy takes a bigger hit than anticipated, Huddleston said. In the event of a long-term recession, the fund would be critical in preventing cuts to the Department of Human Services, which cares for our most vulnerable families.

Beebe's proposal to cut another cent off the grocery sales tax is also laudable, Huddleston said, but wondered whether the cut is too large given the current economic climate. A smaller grocery tax cut would allow room in the budget for more targeted tax relief for low income families, such as a state earned-income tax credit or fixing a flaw in the state income tax that penalizes low-income single parents with two more children.

AACF urged Gov. Beebe and the legislature to examine raising money for critical programs like children's health insurance, substance-abuse treatment programs and high-quality preschool programs by passing a combined-reporting law. It would prevent corporations from shifting taxable income to other states to avoid paying Arkansas income taxes.

For more information about AACF's research on rainy day funds, combined reporting and the state of working families in Arkansas, visit www.aradvocates.org.