Arkansas Has A Spending Problem
On Sept 14-16, 2010, concerned citizens joined in an Arkansas Spending Revolt Tour Big Spending Democrats were in charge. One of the speakers was David Crow. Now,almost 7 year later, Republicans control Arkansas Government. But spending remains out of control. ~ Dr. Bill Smith, Editor |
In 2015, the most recent financial reporting* says AR spent $23.6 billion in tax dollars. That is $7,935per capita vs. contiguous states that spent on average $5,456 per capita. In other words, we spent 45.4% more than the average of OK, MO, TN, MS, LA and TX. When compared to the total US states average of $5,711 per capita, I found that AR spent 38.9% more than the total US average.
Later, I shared these numbers at a meeting. I was asked by a state representative who attended to remove Texas from totals of contiguous states due to its large population and the impact it might have on the numbers. After removing Texas, I found that Arkansas spent 38.5% more than the other 5 remaining contiguous states.
In addition, he asked that I compare Arkansas with all states in US whose population was similar to Arkansas. So, it was determined we would compare Arkansas to those states whose population was plus or minus 1 million of Arkansas. The states were, Oklahoma, Utah, Connecticut, Iowa, Kansas, Mississippi, and Nevada Their average spending was $5,770 per capita. The result was that Arkansas spent 37.5% more than states with comparable populations.
Arkansas total spending in 2015 was $23.6 billion (state and federal tax dollars) therefore, if Arkansas legislators and the Governor were to reduce spending by the 37.5% (the average of comparable states) we would save $8.8 billion -- a really "big" number!
I have always felt that Arkansas state government was a bit oversized having watched it grow so much over the years. As a matter of fact, it was a bit bloated. I think a good place to start looking for cost savings would be employment. In 2015, there were 63,297 full time equivalent employees** in state government. The state of Arkansas employs 213.3 people per 10,000.
However, if we exclude employees who are part of education, that leaves a result of 122 people per 10,000 in population for a total of 35,895 employees. The average employment, excluding education workforce, in surrounding states was 87.81 per 10,000 in the population. That means Arkansas employs 38.9% more people in comparable jobs than the average by surrounding states.
13,963 x $50,000 = $698,158,000 potential savings annually.
Then when coupled with their effort in the last session to also increases taxes by approximately $400 million, I don’t hold out much hope that we will see significant reform.
In summary: Arkansas doesn't have a revenue problem, it has a spending problem!
* Ballotpedia.org/total_state_government_expenditures – data provided by NASBO – National Association of State Budget Officers
** Governing.gov
-----------------
David Crow is Chairman Faulkner County Arkansas Tea Party.
Tags: Arkansas, government, spending, David Crow, Faulkner County Tea Party To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
0 Comments:
Post a Comment
<< Home