Revenue & Tax - Senate

Serving the new proceed not center jonathan dismaying uh thank you members there's been you know quite a bit discussion about this at least over the last couple of weeks as you're wear the bill will reduce the top rate for individual income tax access to three point nine percent and will reduce the top rate for corporations to four point three percent that continues kind of our commitment that the corporate trip trailed the individual and also the larger commitment that we continue to drive down income taxes here in the state so that we're able to be competitive with our surrounding states who are also doing the same thing at least those that have income tax levied additionally it sets aside or moves from the general alignment to reserve fund two hundred ninety million dollars to the. Arkansas reserve fund set aside in a nets again just to make sure that we don't have any shortcomings and that we are really prepared for what we're doing in allowance or something to take a tad but more risk with what we're doing today with the five trans reduction with that i'd be happy to take any questions any of the members having questions in regards to this. Okay I see that we have at least one person here to speak against the bill miss kitchen smith if you can you can come forward to that pronounce that correctly cases map my apologies okay you're with arkansas for children and families correct you just have a seat at the end of the table and go hidden introduce yourself and then you can proceed. Thank you I am now good afternoon and II apologize in advance for being slightly frazzled you all handle joint budget and a much more efficient manner than I suspected and I did not know that it was raining today so but I think you to the committee for. For the opportunity to come at my name is kiss the smith brantley and the executive director of arkansas advocates for children and families. Each year are organization releases the kit counts without a book which is a fifty state ranking of childhood well being looking at four domains which is education economic well being health and family and community for years which notably was through both republican and democratic administrations arkansas has ranked at the bottom of will being for children this year we want we ranked forty fifth that ranking and the components of it that lead to us being ranked so poorly as well i'm here today asking that we vote against tax cuts for now I know that you care about the children of hostage and you want them to thrive and to do so some of critical some of the critical areas in our state need investment. And while parents are central to that to children thriving obviously and community organizations either independent or the ones that partner with the state play an important role this legislative body has a critical responsibility to insuring the well being of our state children many of you here today or your colleagues have already noted the need to make investments and prescore job training investment and excuse me infrastructure improvement health care particularly as we have the highest percentage of maternal desk and the third highest in impedes and programs to bite hunger across the state what sets tap rate states apart from states ranked a little bit lower in childhood wellbeing as how long they have been making investments in these programs and how much they invest in their younger generation each time we cut taxes though those investments are a little bit harder to make. On one hand we discuss how much money the state has but on another hand we and organizations like mine often here that there is no funding are limited funding available for a long term investment for essential programs although as initial excuse me although an analysis by the institute on taxation economic policy stated that this cut would remove four hundred and fifty billion from the state of the include the homeset credit as well. I completely understand the desire to provide tax cuts and I equally understand the desire to remain competitive with other states that are looking to do the same right now however this is the third round of tax cuts since the beginning of twenty twenty three and during that time we have seen the percent the percentage of children living at households with high housing cost burdens increase in the state we've seen an increase in the percentage of teens not in school they're not working the number of children it is three and four not in school because they can't find a precase lot or there is not available near them. The percent of eighth graders not provision and math the amount of babies being born with low birth rates and the number of children dying either accidentally or intentionally have all gone up and to to wrap up I just want to say that I know that we can do better and before cutting taxes again we ask that you please and best improvement programs that help children thrive things like expanding access to childhood education funding programs that will keep more pregnant and post part and women alive and increase funding for the foster care system and the juvenile just the system are just a few of the things that are right now needing additional funding and now is the time to make those bold investments for arkansas children we hope that you will vote against this tax cut and in the next regular session for investments in our states kids thank you and thank you for your time thank you miss me at anybody having questions mismath center blake johnson are you okay we're taking a question I should ask you that yeah yes thank you what. What more. Then the care giver of the parent. I mean paying taxes to a government's going to run a program for an hour a day. And they're they're caring for the challenge we know twenty three hours a day. Which which one is the best better investment to give the money that they pay in taxes back to them or or give it to a program. Was that it just that I want to make sure I fully understand your question when you say an hour a day or are we talking about pre k if they're in a program for an hour a day child care program or eight hours a day they're still at home for the majority of the term and the givers at home or the pancher the gardens that are pay and taxes and we're and we're given relief to those do you see that II do see that but II think in terms of that scenario there's two things one even in prescore a child spends a considerable amount of time in that program not just one hour and because it's happening at three and four it's early in their children development so that means they're better prepared for kindergarten which is what we want through things like the lawns act so we want that to happen and equally if a family right now is having to pay for a telco i'm sure you're hearing from their constituents that it's tough it's more expensive than it used to be and again quality slots are are lacking a lot of that is not happening additional slides are not occurring naturally just through people opening up towel care businesses I think it's been determined that there has to be some level of investment particularly from the state in order to make those things grow happen I think we can take away some of the regulation on some of those. Those child care years and and make those makes those happen privately without without government interreachion and then and i'd rather give the parents in the guardians of money back rather than even paying taxes dues to make a program with a thank you thank you said I understand thank you sooner johnson center patent you have a question sir yes thank you mister. So appreciate your reasoning about you know if we cut taxes then there's less money to invest but you mention the fact that we'd get taxes three towns since twenty twenty three are you aware that revenue has continued to go up after those tax cuts and are you aware of any of these programs that you're talking about about that have that funding has been cut because while you noted the stats of how arkansas does compare to the rest of the country. That's in that's in the midst of of the fundings for these programs continuing to go up so my reasoning is maybe some of those programs don't work is effectively as we think they do and out our taste and have to pay an eye I think many of you know me because I was in state government for seventeen years so I work for the department of human services for the last ten so i'm not going to sit here and tell you that there is not programs with then stay government that don't run as efficiently as necessary and that can't be you know can't have better results but there are several programs that have been either cut or they have been funded flatly so I can just I can just tell you just using one of the divisions that used to be my responsibility the division of you services I believe they got a point one percent increase in the last the budget that you well passed her in the physical session they bring juvenile facilities so even though they have not been current that that amount of funding doesn't actually keep up with inflation and so you very well may have an issue as pertains to just trying to repair windows because anyone that is familiar with construction costs though that those costs have gone up so I do think that there are concerns across the state even if someone has even if there is not an entity that has actually taken the cat well and I appreciate that I think those those are different programs should come make their argument for increased funding because we have definitely had the increased revenues to make those investments in and I believe that even in the face of this tax cut our revenues will continue to grow so appreciate it thank you mister chair yes sir thank you soon repair any other questions senators thank you mister chair thanks for being here today II love your heart to protect your children and I want to take a moment to tell you what the last few weeks has been like in my district we've had tornadoes hit some small communities and have children displaced from their homes. And families really in need and a lot of folks have said you know maybe we can use some of these dollars to build new programs to help with needs you know with tornado victims and I can tell you what i've seen and the last three weeks is the speed of the private industries in the individual citizens to be able to give directly to both impacted instantly. Whereas government related rather state or federal has so much bureaucracy in overhead that takes so long to help those are needed and while I love the heart and there are programs we need to find a continue to find I believe the best impact that we can have for those are need is give dollars back to individual citizens so they can directly give back to their communities and so would you agree that the speed of a program versus the speed of giving folks direct dollars is faster absolutely again I said you know I work for the state for years I won't say that there is not read tape I will say that my concern about private industry being the thing that saves the majority of our tensions that are struggling right now is that it's not uniform across the state so i'm i'm really excited that the individuals in your area saw the need and then quickly responded but there are areas in the state that are. Severely neglected and unfortunately I don't think that private industry is going to save those areas the great news is I think what this belt does is give every every citizen across our consolidability to give more back to their community that's what i'm excited about thank you. Thank you sandra days anyone else. Are you finished I am so okay for your time no and we we greatly appreciate your test some only coming down there this with this government's about the posing views and we we do appreciate that though thank you okay no one else had no one else in signed up as anybody else in here that has a burning desire to speak for against this bill cause if you do I want you to have that opportunity okay seeing nobody center displaying do you want to close or do you have a motion that i'm closed and I make a motion I do care okay we have a motion by synergist maying a second by senator crow all in favor say I in oppose like saying. Okay that motion does pay okay the next item on the june day is going to be SB three center crow if you would introduce yourself and then you will be recognized senator steve crowled district three this is a property tax we're going to increase it from four twenty five to five hundred comes out of the property tax relief fund that has a special revenue of a point five sales tax any questions anybody having questions regards to this. The. Pretty straightforward to you by an audience like speak four against this particular bill. You are closer you have a motion sir make motion to pass please we have emotioned we have a second on case senator crow made the motion sooner call well with second all in favor of they are in the opposed like saying that motions pass congratulations is there any other business come before the committee c n n were germed.