Arkansas Bureaucrat Appear To See No Way to Cut Taxes or Expenses

Arkansas Spending Revolt Bus Tour

Bill Smith, Editor: Today, Andrew DeMillo reported:

A lower-than-expected amount of tax refunds and a boost in individual income tax collections helped keep Arkansas' revenues above last year's figures and expectations, the state finance office said Wednesday.

The Arkansas Department of Finance and Administration [DFA] said that the state's net available revenues in January totaled $459.8 million, which were $19.7 million above last year and $4.4 million above forecast. The state's gross general revenues totaled $529.9 million, which was above last year by $4.6 million but below forecast by $15.2 million, but the drop in individual and corporate tax refunds kept the state's coffers healthy, the department said.

A follow-up to DFA confirmed that DFA Director Richard Weiss told the media:

I think it shows that we're still growing. This whole recovery for us and everyone in the nation has been rocky. There's not been a smooth increase or a surge upward, but I think we're still on a good trajectory, if you will, of getting out of the recession and getting the economy back on track.

Director Weiss, a typical bureaucrat, doesn't see any room for future tax cuts because he obviously can't imagine government cutting the size of government. Fortunately, the republicans do! Weiss of course is supporting Gov. Mike Beebe proposed roll back of another half-cent cut in the grocery tax which supposedly according to the bureaucrats would cost about $15 million in general revenue. It continues to amaze most of "We the People" that government has the audacity to identify as a "cost" both their spending and reductions in taxation. This is perverted application of modern government accounting that was not an accepted government accounting practice before the 1971 when I completed a business degree with 29 credit hours of accounting.

Republican legislators are seeking to roll back spending increases in Beebe's proposed $4.6 billion budget for the coming year, including $23 million for a cost-of-living increase for state workers, to pay for other proposed tax cuts including reductions in the used car and capital gains taxes.

Data provided by Arkansas DFA:

• Net available revenues for the current fiscal year (July 1, 2010 June 30, 2011), total $2.7 billion and are $7.9 million above forecast.
• Individual income tax collection as of January 2011 totaled $311 million and was $28.9 million above last year and $5.9 million more than originally forecast.
• Sales tax collections for January 2011 totaled $173.9 million which was $5.5 million below last year and $9 million below forecast.
• Corporate income tax collections totaled $11.6 million which was $21.1 million below last year and $11 million below forecast.

Based on the above general numbers, it is imperative that Arkansas Government need to be cut! Also, other practice of plantation politics like big dinners for Fish and Game commissioners and gifts to members of new guns and life-time fishing and hunting licenses need to be stopped. If members of oversight committees do not wish to serve on unpaid commission, decline the acceptance of the appointment. [And, it does not matter who is paying for these "gifts."]

There are also numerous other "tradition and practices" in Arkansas that need to cease. These "traditions and practices" reach into almost all branches of Arkansas government, agencies, and government. Fleecing of money from people needs to be stopped even if it appears inconsequential. Spending other people's money (OPM) is always consequential.

As promised before, there will be no free passes for "traditions and practices" costing Arkansas taxpayers. Numbers don't lie, but unfortunately liars, bureaucrats and politicians use numbers to support lies and their deceptions.

It is time for Arkansans, "We The People", to demand that Gov. Mike Beebe as the "head of government" provide ways to cut (not increase) government expenses by 20% in the two years. We should expect for him to locate and eliminate all gravy "tradition and practice" items / issues but he must find meaningful cuts in spending expenses NOT increase in revenue. And, we must demand that all the other Constitutional Officers and independent agencies cooperate in reducing "spending" cost. And if we have revenue surpluses, "cut taxes" or returned the surplus to the citizens and corporations that paid those taxes.

If these elected officials will not cooperate, they have failed in their duties. The legislature should aid then by unilaterally cutting their budgets. And for those Democrats, or even Republicans, in the legislature do not cooperate, expect defeat or in 21 months in the next election.

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