Arkansas' budget surplus offers a chance for legislators this year and next to lead a "tax reformation," Gov. Mike Huckabee says.
Huckabee told an Arkansas Municipal League convention Thursday that he hoped lawmakers would consider using a portion of the state surplus for tax rebates or some other form of tax relief. He said the state is projected to have a surplus of more than $600 million by June 2007.
"Clearly, there needs to be a re-evaluation, not of how much we spend but how much money we take in," Huckabee said at the league's annual convention.
Huckabee said a certain part of the surplus should be set aside for a rainy-day fund in case the state experiences an economic downturn.
"Beyond that, I hope there will be a serious look, if not this year in a special session, but next year at finding ways to bring some meaningful tax reform," Huckabee said. "To have $600 million beyond what the Legislature appropriated ... is really simply unjustifiable."
Huckabee had earlier this year asked state officials to look at the possibility of using the surplus for rebates but has said he doesn't know how much those rebates would be. Any form of tax rebates would have to be approved by the Legislature, and Huckabee said after his speech Thursday that he didn't know if he would call a special session to consider such rebates.
Huckabee has asked his council of economic advisers for
recommendations on rebates or other forms of tax relief. The governor said he expects to receive the recommendations from the council in July.
House speaker designate Benny Petrus, D-Stuttgart, said in an interview that any discussion of tax rebates should wait until the 2007 regular session. Petrus said lawmakers won't know until October when budget hearings begin what budget needs the state may have.
"I think we need to see what the wants and needs are before we talk about any rebates," Petrus said.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
