We began the session by first hearing from Speaker of the House Robert Moore. He encouraged us to be efficient, effective and expeditious. Governor Beebe also addressed the General Assembly reminding us that Arkansas has weathered this economic downturn better than any other state, in large part to do our conservative budget approaches.

On Thursday, the House voted 81 to 15 in favor of HCR 1009. HCR 1009 would repeal a sales tax break for the purchase of large trucks and semi trailers. This tax break was passed during the previous session as part of a package to increase highway funding. The idea was to give the trucking industry an incentive to support a an increase in the diesel tax. A companion bill, which was also passed during the previous session, allowed for a special election to be held on the diesel tax. When it came time to set an election however, it was decided economic conditions were not favorable for a tax increase.

The tax break would not take effect until July. If it remains in place it will take $4 million out of general revenue.

Because it is a non-appropriation bill, it will need 2/3 support of both the House and Senate before there can be a vote on the measure itself. HCR 1009 is now making its way to the Senate.

Also this week, the Joint Budget Committee gave a “do pass” to several letters from the Governor for supplemental recommendations. Supplemental funds are one time additions to an agency’s budget which comes from surplus money. The supplemental funds approved include those for the State Hospital and replenishing the Governor’s emergency fund which was previously used to assist the budget for trial court assistants.

The House will be taking a short recess over the weekend and we will resume sessions on Tuesday at 1:30.

Over the past few weeks during budget and subcommittee meetings, members have shared concerns about what the loss of firefighters could mean for homes and businesses in their district. The concerns increase as we approach the summer months.

As you may be aware, the Forestry Commission laid off 32 employees because of a $4 million shortfall in their budget. The majority of those laid off were firefighters.

House leadership approached the Governor with a plan to re-direct $550,000 from the Agriculture Department to the Forestry Commission. The Agriculture Department will still have sufficient funds to operate at its current level.

The Governor has also requested $2.7 million from surplus funds be diverted to the Forestry Commission to pay back a loan from the federal government and avoid further lay-offs. We will be voting on that supplemental appropriation request with many others during the Fiscal Session.

The situation with the Forestry Commission is by no means the only work ahead of us. Over the next few weeks we will voting on hundreds of appropriation bills.

Fiscal Sessions are necessary after Arkansas voters approved Constitutional Amendment 86 in 2008. Amendment 86 reduces the period for which appropriation bills are valid from two fiscal years to one, requiring the General Assembly to meet in a fiscal session during even-numbered years.

Fiscal sessions are designed to focus only on the budget, however non-appropriation bills can be brought up if 2/3 of both the House and the Senate agree to do so. At least two such resolutions have been filed to date.

This session will allow us to make adjustments in uncertain economic times. We will be able to adjust funding to Medicaid and education.

The Constitutional Amendment which provided for Fiscal Sessions made clear we were to be brief. Unless 3/4 of the General Assembly agrees to an extension, we must complete the work in 30 days. Even if an extension is approved, it can only last an additional 15 days.

We will begin the session at noon on Monday, February 13th. Speaker of the House Robert Moore will address the House. Then members of the Senate will joins us in the chamber to hear from Governor Beebe.

During the session, you can watch all of the House proceedings live at www.arkansashouse.org.