Governor: How Do You Plan To Repay That Federal Loan

Bill Smith, Editor: Is your state borrowing money from the Federal Unemployment Account(FTU)? Arkansans recently discovered that their State Government has borrowed from the FTU Account $390 million in advanced unemployment payments. Arkansas has a low population and incomes, and the payback of this debt is very significant. Today, the Republican Party of Arkansas asked Arkansas Governor Mike Beebe: How do you plan on repaying this loan while still complying with the Arkansas Constitution which requires a balanced budget?

To put the above debt in perspective, as of 2009 when Arkansas borrowed the money, it had a population of 2,889,450. Forty five percent (45%) of the population was under 18 or over age 65. Twenty percent (20%) of the population has a disability. In 2008, over 17% were below the poverty level which was 5% above the National poverty average. Arkansas per capita income was $16,904. [Source: Census Data]

The Arkansas Policy Foundation reported in March 2010, that full-time Arkansas state government employment has expanded 72% in the last 25 years. At the rate of growth, state employment will double from the present 57,179 employees by the end of the decade. In the last 25 years, Government Higher Education doubled and makes up for 44% of state employees while Social Welfare programs account for 18%. The Arkansas Department of Finance and Accounting doubled in size while the Arkansas Department of Corrections tripled in employees. Only one department, the Arkansas State Highway and Transportation, declined 3.4% in size.

To understand the full impact of government employment in Arkansas, one would have to add to the State Government totals the number of all elected politicians, county employees, city employees, state employees, elementary and secondary public school teachers and employees, and federal government employees (military bases, Corp of Engineers, Federal Courts, and all Federal offices in Arkansas). In Arkansas, government is the major employer which is paid for by varied forms of taxes, fees and charges. The impact of Government directly influences the number of lawyers, lobbyists, bonding agencies, government suppliers, and contract employees associated with government

In 2009, 43% of Arkansas population was employed and of the total people employed only 18% worked in tangible farming, construction, manufacturing, mining and logging jobs while the other 82% worked in government, professional, educational, financial and service jobs. It is time for Arkansas to change its dependency on Government for employment and to work to develop private employment jobs. While other states are on their way to bankruptcy, Arkansas still has time to shift direction. They can begin doing so at the polls in November.

A good start this year would be for Arkansans to elect fiscal conservatives to all office, especially to the state offices. It is time to replace the liberal elitist Democrats who continue to expand government and in-debt it citizens. It is critical for Arkansans to be on a safe secure basis while the rest of the country flounders. The allegiance of the Governor, Lt Governor and others should be solely to Arkansas and not to the Obama administration and the Federal Government. In November, Arkansans have the opportunity to choose a path of freedom and prosperity verses the path established by elitist which expands government spending, creates higher taxes and expanded debt and restricts the exercise of individual freedoms.

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