Beebe signs tax cut bill into law, school appropriation advances

Arkansas' income tax will be collected from 81,000 fewer people next year, state officials say, now that Gov. Mike Beebe has signed into law a measure that raises the minimum level at which the tax must be paid.

Meanwhile, a joint panel endorsed increasing the state's public school budget by $178.8 million over the next two years, including an increase in the per-student funds schools receive from the state.

The income tax cut signed into law Monday was part of a compromise Beebe reached with House leaders to allow for passage of his plan to cut in half the state's 6-cent sales tax on groceries. Beebe signed the grocery tax cut into law last month.

"I think it will put more money into the pockets of working poor Arkansans and it will make our tax system less regressive and more fair, particularly for those who will be able to provide for the basic necessities of life for their children," Beebe said at a bill-signing ceremony in the state Capitol.

The tax cut is expected to reduce state revenues by about $14 million in the 2008 fiscal year, which begins July 1, and by $16 million the following year.

The schools budget bill approved in the Joint Budget Committee includes a $121.7 million increase in per-student funding and adds money to the state's pre-kindergarten and other education programs.

The proposal will increase the appropriation for the state's public schools to $2.56 billion in the first year of the biennium and to nearly $2.6 billion in the second year.

The appropriations bill and the two bills to increase per-student funding by $214 were expected to go before the full Senate on Tuesday. The increase would push per-student funding to $5,876 annually by fiscal 2009.

Lawmakers also expected to get a final price tag Tuesday on the cost of repairing crumbling school buildings throughout the state. Sen. Shane Broadway, who spearheaded a program to repair school facilities, said the cost could be between $400 million and $500 million.

Beebe has said school facilities will be the priority for the state's surplus, projected to grow to $844.5 million by July 1. Beebe told reporters Monday he doesn't believe lawmakers will be surprised by the price tag figure.

"I think most folks have been anticipating what it will do, and I would surprised if it caused any significant upset in the session," Beebe said.

The House also rejected legislation that would have doubled the number of charter schools in the state after lawmakers questioned the need to increasing the cap.

The proposal by Rep. Keven Anderson, R-Rogers, failed on a 43-49 vote. The measure would have increased the cap on charter schools from 24 to 48, and would have removed a requirement that the schools be evenly distributed among the state's four congressional districts.

"Charter schools are in an experimental stage now, but the results so far have been promising," Anderson said. "This allows innovation while maintaining our standards."

Opponents questioned why raising the cap is necessary if the state hasn't reached the maximum number yet.

"In my opinion, this is just another step toward a voucher system," said Rep. Eddie Cheatham, D-Crossett.

The House also sent to Beebe's desk three bills aimed at improving the state's jury system, including a proposal to cut the amount of time jurors are required to serve from six to four months.

A bill changing the rules governing young drivers won the endorsement of the Senate Committee on Transportation, Technology and Legislative Affairs. The bill, by Sen. Jimmy Jeffress, D-Crossett, requires a teen be at least 15 before seeking a learner's permit.

The bill bans drivers under 18 from being on the road from 11 p.m. to 5 a.m. The bill also bans teen drivers from using cellular phones behind the wheel and restricts them to having only one other passenger in the car.

However, a young driver could be out late or have more than one passenger in the car if traveling with someone at least 21 who has a driver's license.

Steve Blackistone, a liaison with the National Transportation Safety Board, said more than 125 people were killed in Arkansas in crashes involving teen drivers in 2005.

"Clearly, the drivers are killing others their passengers, people in other vehicles and pedestrians, not just themselves," Blackistone said.

Jeffress said the bill would cut down on crashes involving young drivers.

"A young person is still developing physiology as far as their mind and eye and coordination," Jeffress said. "It gives them another year to allow that physiology to mature before they start ... getting behind the wheel of a killing machine."

The committee endorsed the bill in a voice vote, with Sen. Paul Bookout, D-Jonesboro, voting against it. The measure now heads to the Senate floor.

The Senate voted 35-0 to pass a bill requiring all state prison inmates be screened for HIV before their release. The Senate also voted unanimously to make an "unlawful dog attack" a misdemeanor, punishable by a fine up to $1,000 fine and up to a year in jail.

Both bills returns to the House for members to concur on amendments before going to the governor.

Associated Press Writer Jon Gambrell contributed to this report.