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AACF Weekly Legislative Update Vol. 2

It was a short week at the State Capitol but that doesn’t mean it was uneventful. Here’s what you need to know:

HEALTH: Gov. Asa Hutchinson asked lawmakers on Thursday to go along with a plan that would continue the Private Option through December of 2016. The continuation of the policy, which has helped over 220,000 Arkansans find affordable health coverage, came with a caveat. A legislative task force will offer advice and direction for the program’s future beyond 2016. You can read AACF Executive Director Rich Huddleston’s statement on the governor’s speech here.

TAXES: SB6, also known as the governor’s tax cut plan, passed this Senate this week and will head to the House. The plan is a step in the right direction for tax fairness, but leaves out the poorest 20 percent of Arkansans and raises concerns about how the lost revenue will impact vital programs for children and families. Despite tax breaks targeted to the middle class, and even a hike for the very wealthy, the bottom 20 percent of Arkansas taxpayers will see no average change in the taxes they pay.

The proposal maintains some small marginal tax breaks for those at the bottom (who make less than about $17,000 a year) that were already passed in 2013, but there is nothing new in the bill that would help low-income Arkansans. Workers at the bottom of the ladder pay about twice the tax rate of the richest people in our state as a percentage of income, and have benefitted the least from the current economic recovery. Read our full statement on the governor’s plan here.

EDUCATION: AACF continues to work to find additional funding for pre-K. If new dollars are not added to the education budget when Gov. Hutchinson releases his budget on Tuesday, efforts will be made to reallocate existing education dollars for pre-K.

Take a look at all the bills we’re tracking so far. Keep an eye on our blog for the latest news and updates. And follow us on Facebook and Twitter for additional thoughts and analysis.