The State of the State Address: Gov. Beebe Calls for Improvements in Education, Economic Development and Health Care

In his State of the State Address on Tuesday, Jan. 13, Gov. Mike Beebe said he remains dedicated to the promise he made two years ago to improve the quality of life for all Arkansans. Foremost on his agenda are plans to continue to improve both public and higher education, economic development, and health care.

The recent economic downturn will certainly present a challenge in meeting these goals. But, Beebe stated, because of conservative forecasting, Arkansas is in a far better position than many states, which face severe budget cuts in many areas.

Overall, Beebe said that his budget proposals remain basically unchanged, and no cuts are planned. However, he would like to see increases in two areas: public education and the Department of Human Services’ (DHS) Division of Children & Family Services.

Education
“We must strive to prepare Arkansas and her children today for whatever the world may bring tomorrow,” Beebe said, adding that his first and highest priority has always been to provide the best public education possible for Arkansas’ children.

To make this a reality, Beebe has proposed to add $234 of additional per-student funding over the next two years and give school districts additional one-time enhancement money of $35 per student.

“As our schools improve… so too must our higher education system,” Beebe said. But historically Arkansas has a low graduation rate from its colleges and universities. A primary reason for this low rate, he said, is that many students run out of funds before they can graduate.

To improve graduation rates, Beebe recommended that the state:
• Shift the focus of its graduate formula from enrollment numbers to the number of those who graduate with degrees. He said this change will encourage colleges to keep students longer.
• Improve the state’s need-based financial aid program and broaden it to include non-traditional students.
• Make more funds available to those who attend two-year colleges and universities.
• Make scholarships more accessible by simplifying and reducing paperwork in the application process.
• Increase total financial aid and scholarship funds, since the cost of higher education continues to rise.

Economic Development
As the state’s education continues to improve, so do it’s opportunities for economic development. “One can’t succeed without the other,” Beebe noted.

Clearly, both are succeeding. Arkansas continues to attract industry from throughout the United States and around the world. Recent developers include Caterpillar and Hewlett Packard, among others, resulting in $2.7 billion in new investments and 19,000 new jobs. Beebe said that such development would not have been possible without the availability of the Governor’s Quick Action Closing Fund, and he asked that it be replenished with $50 million over the next two years for future economic developments.

Also high on Beebe’s agenda to bolster Arkansas’ economy is to make another cut in the state’s grocery tax. Beebe initiated efforts to eliminate the tax two years ago and cut it by half. He said that while the current economic climate will not allow for the total elimination of the tax this year, he believes it can be cut by one cent. This would reduce the tax to two cents, demonstrating “ our dedication to eradicate this onerous tax … and do what we said we would do.”

Beebe said that the state should also focus on reducing its dependence on oil by developing alternative energy sources and seeking ways to conserve energy, which would allow us to spend less on foreign oil and put more money back into the state.

Health Care
As our education and economy continue to improve, so too must our health care. Of primary importance, Beebe said, is to help wards of the state receive the best care possible. To do this, the state must increase the resources available for the Department of Human Services’ Division of Children and Family Services so that it can hire additional skilled personnel to reduce case loads for the foster children’s program.

Beebe said that we have the ability to continue to reduce the number of uninsured children through ARKids First, by increasing the maximum eligible income to 250 percent of the federal poverty level.

Other health care improvements include:
• Additional funds for community health centers.
• Continued support of the UAMS residency program in northwest Arkansas.
• In-school mental health care for children.
• Increased preventive efforts for breast, cervical and prostate cancers.
• Availability of annual flu vaccines to everyone.

“And finally, we can save lives by implementing a statewide trauma system,” Beebe said. “We can pay for this entire health care package with a 56-cent increase to Arkansas’ cigarette tax and a reform of the smokeless tobacco tax.” He said that this tax increase may also encourage people to stop smoking, which will have the added benefit of lower health care costs as fewer people suffer from tobacco-related health care issues. He said that currently $620 million a year is spent on tobacco-related health care.

“These are the times that display our mettle as citizens and our capabilities as leaders,” Beebe said. “We can accomplish all of these goals even while facing the toughest economic time in two generations. … If we can capture success and continue moving Arkansas forward during a national recession, it will be a landmark of true achievement.”