Spcial Legislative Session Updates

Senators quizzed their revenue and tax committee chairman today on provisions of his proposals to raise taxes to pay for court-ordered education reforms. Senator Tim Wooldridge of Paragould and state fiscal officers spent more than an hour in the Senate chamber fielding questions. Wooldridge has proposed: --A five-eighths percent sales tax increase for 241 (M) million dollars. --Repealing the state`s 30 percent capital gains exclusion for 22-point-5 (M) million dollars. --Raising the assessment rate for property taxes from 20 percent to 22 percent for 25 to 80 (M) million dollars. --Expansion of the sales tax to some services, such as wrecker and industrial cleaning services, with the amount depending on the services affected. --A seven percent flat tax on corporate income for 25 (M) million dollars. --Raising the state severance tax on natural gas to as much as 15 cents per 1000 cubic feet, with allowances for low-producing wells to raise 8-point-9 (M) million dollars. Senator Ruth Whitaker of Cedarville questioned the notion of raising the tax on the natural gas royalties of older landowners. Senator Brenda Gullett of Pine Bluff suggested that any tax changes to pay for education improvements be temporary while lawmakers completely overhaul the state`s tax system. The House and Senate revenue and taxation committees have not acted on any tax measures. The committees were scheduled to meet jointly Wednesday. The House Education Committee rejected a bill today that would have standardized superintendent salaries across the state and tie part of the pay to a performance bonus. House Bill 1075 by Representative Keven Anderson of Rogers would have mandated salaries to be between 41-thousand and 118-thousand dollars, depending on the district`s enrollment. Anderson said the bill was about good business practices and accountability. But committee members questioned whether Anderson`s bill would unfairly punish superintendents by lowering their salaries and whether it would make it difficult for larger school districts to compete for out-of-state job candidates. A bill that would expand the state`s charter school law was rejected today for a second time by the House Education Committee. House Bill 1059 by Representative Johnny Key from Mountain Home would have expanded the number of charter schools allowed in the state from 12 to 24. The bill also would have allowed schools to operate for five years before having to renew their charter with the state. Committee members voted down the bill with little discussion. In an earlier meeting, they questioned whether expanding the number of charter schools would hurt public schools by taking students. Charter schools receive state funding but are operated by business, community groups or other organizations instead of being part of a traditional school district. The schools have more freedom than regular public schools in setting curriculum and other guidelines. Posted by Mike Hellgren