AAC
DIRECTOR’S DESK
• Retirement — We entered this session with several major reform topics on the horizon, some with merit, but many that were devised with no input from our greatest stakeholders — you. In addition, retirees could have been negatively impacted with reductions in cost of living (COLA) increases, yet many made the decision to retire based on what they believed would be consistent COLA figures into the future. Tankfully, none of the bills that would impact vested employees or current retir- ees were passed, and the co-chairs of the committee, Sen. Bill Sample and Rep. Les Warren, both opted for two years of regional meetings and input from stakeholders before we move ahead. More to come on this front.
• Road Funding — Senate and House leadership and Gov. Hutchinson unveiled a new road plan that will increase gas and diesel taxes at the wholesale level by 3 and 6 cents, respectively. Tis increase will provide badly needed funding for our county roads and bridges to the tune of $12.6 million per year (ACT 416). In addition, a proposed constitutional amendment (HJR 1018), will be on the ballot next November and would make perma- nent a one-half cent sales tax that is set to expire in 2023. Tis, if passed, would continue funding of about $44 million per year that goes to the counties of Arkansas.
• Marketplace Fairness — Counties, cities and the state have been suffering for years by failing to collect sales tax on some internet purchases. Tough the tax was already in place, Senate Bill 576 (now ACT 822) provides the mechanism to collect new revenue of approximately $6 million per year for counties. We believe this projection is low, but regardless you will likely see a spike in sales taxes for your county when this law goes into effect the months following implementation on July 1. A shout out to Sen. Bart Hester and Rep. Dan Douglas for champi- oning this long-overdue fix.
• Voting Equipment — Unfortunately all counties in Arkansas were in desperate need of new voting equip- ment around five years ago. Also unfortunate was the counties reached out for help from the state and were given a hodge-podge of answers to the funding needs, with some counties receiving 100 percent of the cost, others 50 percent match and some, hopeful for a
match, unfortunately paid 100 percent of the cost of equipment upgrade on their own. Te homestead credit bill (ACT 808) moved approximately $8.3 million out of the property tax relief fund to the secretary of state’s office for distribution to counties in order to help equalize some of the funding indiscretions described above as well as to help fund new equipment for the 25 or so counties that are still using outdated equipment. Much thanks to Sen. Jim Hendren and Rep. Lanny Fite for their support of counties on this bill. Te details on the funding should begin rolling out this spring.
• 911 Reform — Make no mistake, counties desperately needed help to fund skyrocketing costs for our public safety answering points (PSAPs) across the state. But to say this bill (now ACT 660) is about just money doesn’t contemplate the lives it will save. For many years our PSAPs have failed to communicate well with one another due to older equipment and antiquated technology. Tis bill will provide needed funding, oversight by a board of our peers and vision to bring our systems on par with where they need to be nationally. Te thought that you can get on your phone and an UBER driver can find you in seconds while deputies and volunteer firefighters are left wondering where you are is something unacceptable with something as important as emergency communica- tions. Yes, cell phone and prepaid card fees (user fees, not a tax) will increase, but the benefit of next-generation 911 will be something we all can support. We estimate the funding increase for counties (and cities that oper- ate PSAPs) will increase in the $18 million per year range. Sen. Jason Rapert, Rep. Michelle Gray and Gov. Hutchinson are heroes for championing this cause, and we can’t thank them enough.
Tese few items give just a taste of the success of the 92nd
General Assembly. In the end more than 1,800 bills were filed, 500 of which affected county government. Of the 31 bills in the AAC legislative package, 29 passed (a 94 percent success rate!), and dangerous issues such as sales tax caps and the aforementioned retirement changes never saw the light of day. We will be putting together meetings to go through the overall results and get the information out to you in the com- ing days, but for now I’d like to offer a congratulations to the counties of Arkansas. Tis will be a long-remembered session.
www.arcounties.org 8 COUNTY LINES, WINTER 2019
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