Gov.-elect Beebe says he's working on phasing out tax

BYLINE: By ANDREW DeMILLO, Associated Press Writer

DATELINE: LITTLE ROCK

Attorney General Mike Beebe who becomes Arkansas governor in January says he's already working on how quickly the state will be able to phase out its 6-cent tax on groceries, one of the Democrat's key proposals during his campaign.

In his first news conference since winning Tuesday's election, Beebe said the question remaining on eliminating the tax was whether to phase it out in specified amounts at a time, or pass legislation that would phase out the tax using a formula tied to revenue growth.

"Both approaches meet our ultimate goal of eliminating the grocery tax, which I'm not backing out of one iota," Beebe said Thursday in addressing reporters and a crowd of about 200 people, including many legislators, on the steps of the state Capitol.

He said new revenue forecasts of an $843 million surplus for the next two years will help provide guidance, but the state will still need the Legislature's recommendation on school funding.

"We've got to have a final number on what's necessary for K through 12," Beebe said. "Until we know exactly what the adequacy requirement is, we can't be definitive. Hopefully, you'll know that within the next few weeks."

Beebe said he plans to meet with Republican Gov. Mike Huckabee soon to talk about the transition and said he doesn't have any hard feelings toward Huckabee, who campaigned for GOP gubernatorial nominee Asa Hutchinson and called Beebe a better follower than a leader.

"The campaign's over, and once the campaign is over I think it's more incumbent on me than anybody .... to set the tone that we need to bring people together," Beebe said. "If I'm going to say that in a campaign, I need to live it."

Beebe gave little hint of his choices for administration positions as he prepares to take over the governor's office, but said he's already received a number of calls from interested people. Some cabinet members from Huckabee's administration will likely stay on, he added without naming names.

"In my mind, there are some who are pretty secure right now," Beebe said.

Beebe said former poultry industry lobbyist Morril Harriman, whom he named as chairman of his transition team and as his chief of staff, will not work directly on issues regarding the poultry industry. A former state senator, Harriman resigned as president of The Poultry Federation to work in Beebe's administration.

"In order to avoid even the appearance of impropriety, we're going to build a firewall and he's not going to have any dealings at least for a couple years," Beebe said. "We'll take whatever steps we have to take to ensure the public there is no undue influence."

Beebe, a 20-year veteran of the state Senate, said his governorship will be a "partnership" with the Legislature and he will follow the model of Bill Clinton in working with lawmakers.

"I expect I'll probably be more like Clinton," the former president and Arkansas governor who was known for wandering state Capitol hallways during legislative sessions.

"I don't know how much I'll wander the hallways," Beebe said. "I was a product of the Legislature so I understand some of the nuances in the way they think and act. I'm that kind of person anyway."

Beebe said he didn't know if the Democrats' sweep of the state's seven constitutional offices Tuesday was linked to problems the Republican party faced nationally. His victory reclaimed the governor's office after a decade of Republican control. Huckabee could not seek re-election because of term limits.

"I'd like to think it was our candidates," Beebe said. "I know Arkansans by nature are very independent. We're a populist state...I would say Arkansans were less influenced by national politics than in other states because we're so independent by nature."

Beebe said he will be more detail-oriented and hands-on on some issues, particularly in dealing with lawmakers.

"Dealing with the legislators I'll probably be involved in," he said. "I want to be really involved in education and economic development, but I realize you can't do it all. Time forces and dictates to a large extent the ability to delegate to people."

Beebe hugged reporters and legislators before his news conference, and afterward displayed a "Vote for Mike Beebe" sign written on sheets of paper with crayon by an 8-year-old girl from Beebe.