Beebe emerges from session victorious

LITTLE ROCK From his push for an increase in tobacco taxes to his call for another cut in the state's grocery tax, Gov. Mike Beebe enjoyed another batch of victories in the Legislature in his second regular session as governor.

In the 88-day session that ended Thursday, lawmakers backed nearly every major piece of Beebe's legislative package and gave the governor increased power over the state's surplus by allowing him to use a third of it to plug holes in the state's budget.

The Democratic governor emerged with a list of accomplishments that his allies say he can tout as he moves closer to the 2010 elections, and political opponents acknowledge that Beebe may have gained more sway over the Legislature from this session.

"I would say this governor has unprecedented power and control over the Legislature," said Republican Rep. Ed Garner, who opposed Beebe's efforts to raise cigarette and other tobacco taxes.

Beebe began the session challenging lawmakers to expand the state's health care system and the availability of college scholarships, despite the nation's recession and the deep budget cuts other states faced at the same time.

"We can accomplish all of these goals, even while facing the toughest economic time in two generations," Beebe told lawmakers in his state of the state address at the beginning of the session. "Finding success among prosperity is admirable, but if we can capture success and continue moving Arkansas forward during a national recession, it will be a landmark of true achievement."

The governor, however, wasn't able to completely brush away the economy. Despite finding room for a $40 million cut in grocery taxes and a tax cut for manufacturers that may cost up to $10 million, Beebe's $4.5 billion budget didn't have room for much more.

After state fiscal officials reduced their revenue forecast for the coming year, Beebe asked lawmakers to set aside a third of the state's roughly $300 million surplus to plug holes in the budget. It's a step that Beebe says the state won't be able to take next year, should the economy worsen.

"We can plug with this $100 million this time," Beebe told reporters last week. "If there's that kind of gap next time, your only relief is going to have to be cuts."

Beebe saw some pushback from lawmakers in the final days of the session, including a series of tax cuts approved by the House despite Beebe's warnings that the state couldn't afford the revenue reductions. A Senate panel later rejected most of the cuts.

A group of lawmakers opposed to school consolidation temporarily stalled the state Education Department's budget after a Senate panel rejected proposed changes in the consolidation law. But Beebe said he wasn't worried about whether the budget would make it out of the Joint Budget Committee.

"I have never seen a major budget fail to get out. Just think about it, do you want to be the architect or the person who decides that a major budget like human services or education doesn't get funded?" Beebe said.

Legislative leaders say that Beebe's success in the session is a reflection of shared interests that they had on various issues, including the plan to fund a statewide trauma-care system and expanded health-care programs.

"What you had in this session was a very unique convergence of interests where what the legislative leadership set out to do complemented what the governor set out to do," House Speaker Robbie Wills said. "Many times, we were working at issues from two different angles but we all reached the same conclusion and ended up on the same team."

Democratic Party leaders are pointing to Beebe's victories in this year's session as something they'll tout during next year's legislative campaigns, not to mention his re-election bid.

"We've used his agenda as our party agenda and we anticipate that people will be able to continue doing that through his campaign," House Majority Leader Steve Harrelson of Texarkana said.

Republicans in the Legislature say they'll have a tough time fielding a candidate to run against Beebe next year, given his success in the past two sessions. But GOP leaders in the House offered a preview of the opposition the governor may expect, branding him a tax-and-spender for his push to raise cigarette taxes for expanded health care programs.

House Minority Leader Bryan King, who had sparred with Beebe over the tax hike proposal, said he felt like Beebe intimidated fellow Republicans during the session. King said he thinks Beebe's power will only go so far as the Capitol doorsteps.

"The governor is extremely powerful within the Capitol," King said. "Outside of that, when you look at individual districts, he doesn't come in and influence and sway things."

For his part, Beebe isn't yet talking about next year's campaign and says his focus is finding ways to build the state's economy despite the nation's recession.

"A lot of our focus will continue to be on economic development, job creation, broadening that tax base so that more people have better jobs," Beebe said. "We have to execute, that's why they call it the executive branch, we have to execute these laws and budgets that we've put in place."