Arkansas Lawmakers Face Tough Budget Decisions Despite Surplus
FORT SMITH, Ark. — Arkansas lawmakers have started fall budget talks in Little Rock. The Natural State has a budget surplus, but Gov. Mike Beebe is holding off on deciding whether to restore budget cuts made in April. The governor’s plan to cut the state’s grocery tax, for a second straight year, may also be jeopardy.
The Kraker family spends about $150 each time they visit their local grocery store, and they’ve noticed rising food prices.
“Especially meats,” said Justin Kraker. “It always seems like it’s getting more expensive, and they blame it on the gas prices.”
The Krakers, a family of four, said they need support the governor’s efforts to lower grocery taxes.
“Any type of relief we can get in today’s economics especially is paramount,” said Kraker.
Last year Arkansas lawmakers cut the state’s grocery tax by half to 3 percent. Beebe said his ultimate plan is to abolish the tax.
“How fast we can do that and what increments we can do that will be dependant upon on the economy,” said Beebe.”
His first priority will be maintaining the state’s essential services, which may include restoring some of the budget cuts made in April.
The Kraker family said they hope to see the tax abolished soon, because saving all that they can is an essential part of keeping their family healthy.
“Any tax relief in my opinion is an absolute necessity for all Arkansans or anybody in this country,” said Kraker.