Revenue & Taxation- House

Please sign and there's a sign in sheet out side that door out there and the only thing that I would ask you if you speak if you will limit your comments to five minutes so everyone can have a chance I'd appreciate that okay. All right representative gene are you ready present your bill I'm calmer I'm better looking representative Jane I'm Joe Jett representative off. Representative Jett would you like to present your bill this list I came up here with me I don't know what to think about. I've been called a lot of bad things last past month and a half but I think at the top. That shows you how much confidence does guided me he's got this guy next to me all right representative Joe Jett are you ready to present yes Sir Mr number to go. Members appreciate it the really think I was going to come back down here to another bill but we see fit that here we are so the bill is pretty simple is a four pronged bill we're talking about income tax we're talking about corporate tax we're talking about the Corporation of I mean the one seven nine conformity issue we're talking about the tax credit one year non refundable tax credit inside the package everybody because last session last more extended such person whatever was last December we passed the tax cut package that we faced in triggered in on the income tax in it was right now we twenty twenty two we we took five point nine five point five twenty three we went five by five point five five point three. Twenty four one five three to five one and that and finally twenty five triggers didn't kick in it was going to go five one four point nine on the top marginal rate. This is regard as what anybody's heard read. Read on the interweb net this is not a new task at the only thing we're doing is we're celebrating the tax cut we're taking out years twenty three twenty four twenty five we're retro active putting that tax cut that we passed last December into January first of twenty twenty two that means if we pass this package today the effective tax rate in going back to twenty twenty two of fifty January first twenty twenty two will be four point nine so what that means I on like for payroll for example somebody DFA's told me that I believe it was September they're sending out the new payroll withholding schedule for the employers in October that the employers and employees so choose to do their effective rate will go from five point five to four point nine immediately and then then was that pay their taxes one back from January first of twenty twenty two the capture those additional eight months I believe is a much right eight months down four point nine as well so I just want to stress that that the end of the day the income tax portion of this is not a new tax we are just we're bridging if you will from January first of twenty twenty two to January first of twenty twenty five were taken away in making this immediate comedians so um that's that portion. Of the bill Moved down to the corporate corporation income tax right now it was at five point nine we moved five point nine and we had it also that it was going to be triggered phased in all the way to twenty five and twenty three was supposed to go to five point seven twenty four five point five and twenty five down to five point three so what we're gonna do on this we're going to instead of making that retroactive to twenty January first twenty twenty two this proposal make that active January first of twenty twenty three twenty three is what this proposal do. This is this is huge for the business of Arkansas just trying to make Arkansas is competitive with our surrounding states I would like when they hit the to push that all the way down to four point nine this The next package myself but obviously you know we had to negotiate with the Senate and executive branch as well so did not give away on that contrary to what represent Lane Jean thanks to his help the thanks I get away on everything I did not get my I did not get away on that but is coming to five three under this proposal January first twenty twenty three. Next will be the depreciation this is something that I've actually worked on since. Manner I guess since they do not General Assembly actually had a bill for this And then twenty twenty fifteen I believe we took we took a look at go on to schedule one sixty eight a schedule one seventy nine the depreciation schedule but the cost of that was just enormous mmhm my memory serves me correct I think the DFA's fiscal impact for the bill thank you come back like three hundred fifty million dollars so it's just a huge impact but I'm telling you it everything that we're doing here in my world and the way I see it is this piece this package is huge doing this one seven nine this would be a huge benefit for small businesses small or small businesses farmers and ranchers people of Arkansas this will this will save literally millions of dollars for these businesses and farmers but what this does is going to conform the depreciation schedule to the federal a depreciation code let somebody dispense their deductions off right out the gate one hundred percent up to I think Paul on where you're at somebody if I'm not saying this right publish correctly but thank you some thank you so me thank you I think it's a million eight eighty thousand dollars this cat on the US so in other words like you buy at the combine or or whatever contact or whatever the case may be you can expense that right out of the gate hundred percent up to a million dollars so and I also I'd be remiss if I did not Thank you represent Beatty champions because he brought this bill to this committee last session and with everything going on I ask representative body just to hold the bill back given my word that if The state comes into what we could actually pull this off that I would support is our president and I my only regret is I wish representative body was run on this portion of of this package. The leadership we decided to put this all in one package and make this a special session go as fast as possible was a reason why we did not hold us out So submitted or something else as want to say about this but it scares me right now but this this will be huge for the business of Arkansas. In the last but not least on the flesh confectionery income tax credit this tax credit will be hundred fifty dollars a person for a resident of Arkansas in this income up to eighty eighties my notes are on here up eighty seven thousand okay I got a little shooter it's got eighty four five but we've updated that to eighty seven thousand. So in other words anybody making below eighty three eighty seven thousand dollars in the state of Arkansas will get a non refundable tax credit the hundred fifty dollars of for somebody's making if the tax liability is less than a hundred fifty dollars so the tax liabilities a hundred dollars it will be a hundred dollars tax credit they would receive is a non refundable tax credits make sure body understands that. So then it goes up to two hundred one thousand I believe I got the wrong notes here but it goes up to a hundred one thousand dollars that scales out so in other words as you get above eighty seven thousand dollars that hundred fifty thousand a hundred fifty dollars at the scales down and then you just double that for a married father married filing couple if it's their mother the they're filing married up two hundred and. Seventy seven for eleven thirty four thousand dollars. The nearly three hundred dollars tax credit the couple will and then that skills out on up to two hundred thousand dollars as well and like I said that's for residents of Arkansas that is nonrefundable. We're talking we're talking this total package is going to five hundred million dollar package a prospect five million dollars. So specific amount of money obviously but thank you support to keep in mind that we're operating out of close to one point seven billion dollars excess above our our state I think it's important keep in mind that next session DFAT what they do is they will they forecast two years out in so on the forecast for two years out after Arce's math there still four hundred thousand dollar cushion they're above what we think it's going to take to fund our say and I'm assuming policy inflation factored into that figure as well. So. And that leads to the nine hundred pound elephant in the room is the cares Act money because that's the one thing that I've got to ask about probably more so than anything. I actually have a high level of comfort of what the FAA the information they're giving us the information is is that you know the money that we use of for the care is that money is not flowing into our say I think I think it's important to understand or recognize the fact that the state of Arkansas is unique that that as far as I know that we're the only state union has in our same mechanism and everybody else has like a general budget thank you I think it's very very important to recognize. So that kind of skews what the if the the the thumbprint offense have us under as far as how we use these the cares that money if you will so the the cares that money is a stipulates and their program I'm on read a quote from a or a paragraph that US secretary Janet Yellen department treasury secretary sent out for guidance to the state earned a second but as long as we do not use any cares that money to offset are are a. In our general revenue or the RSA then we will within the federal guidelines to go ahead and cut taxes. And the the response the Secretary wrote is a like to read Mr chairman you will yes nothing nothing in the act prevents the state from enacting a broad variety of state tax cuts that is the act does not deny states the ability to cut taxes in any manner whatsoever is simply provides that funding received under the act may not be used to offset a reduction in net tax revenue if states lower certain taxes button do not use funds under the act to offset those cuts for example by replacing lost revenue through other means the tax mandate is not implicated. So that's coming from the Big Daddy wrapped herself up in the city and to you know she's like you know seek to put those guys out even though the feds no the state of Arkansas is entered into the party of a lawsuit against the fence over this issue the a federal District Court has ruled and and the thirteen states that were part of this part party in is enrolled as a is in our favor right now so we've already passed one litmus test as far as using can we used or not cut taxes and still have this pot of money out there and use it and I would maintain that I have to have a lot a little confidence with the FAA in this issue actually reached out to I will tell you all you know going back into Last session as we as we ramped up into a special session to the December. Tax cut would probably start of leadership started meeting with the governor's office. And I'm guessing probably around July. Then we probably met I don't know probably half a dozen times at least. And I mean I remember asking this question Nazim two Larry I mean or secretary Walter if you will these meetings but asking about this issue and always was assured about this you know we was operating well within the guidelines set forth by the federal policies. Insulting you fast forward to this you know when we started ramping up on the US innocents other numbers started coming out and DFA's got to use a formula and I I'll be first met I don't understand form other than the fact that what I do understand one of the sections that goes into this form of based on what the FAA's tell me is inflation I don't know if the inflation index CPI or that they can answer that problem another official burden I can't but in oversee PI but regardless is an is an index assent inflation index some sort of goes into the section of this form. So back last year if CPI order that index was that they're using was it say three percent and now serves eight point five percent that number skews the number that this form of spreading out which changes the dynamics of this question a lot and so I think that's a lot of where the plot of the confusion lied as we started ramping back up this discussion based on what the the secretary and his folks that have told me so I really don't want to wait off numbers but I'll Polish of numbers towards that does anybody get other than fact to tell you that. The Sooners thousand pages unders Care Act how we can use this money but when you boil it down this one. Paragraph from secretary secretary Janet Yellen who runs the Department put this bra I think I think it speaks for itself of what we're done and I think in a responsible manner. So that Mister chairman I'm done and I will try to answer any questions and if I can't I've got pretty smart people sitting all around me to help me. Thank you representative Jett are there any questions from the committee. Representative Garner thank you very much I've got a lot of questions actually as you might guess first of all we're talking about a surplus when we have so many under funded programs I'm concerned about that I'm also concerned about the potential for inflation which we don't seem to have considered and to the The the final numbers It feels like the timing and the responsible manner that you talked about are off a little bit and it seems that if we know that a court case is going to be determined. And about their so this spring here and I guess and we know that that's going to that somebody's gonna be talking about that so we'll know a little bit better that about that we've got all these programs that are under funded such as. The disability. That community all of our care givers are teachers all of those kinds of things that we know we're underfunded this just seems like the timing is bad I know it's not a new I know it's not a new tax I'm not arguing about that I actually agree with some of the corporate issues some of the things that that I do think we need to do it worries me that this one hundred fifty dollars is not refundable for the very folks that need. Support the most are not getting anything back because they don't pay taxes it just seems like. The timing is extremely bad when so many people are hurting after covid and I guess I just want you to reassure me that that's not the case and we're going to have money to take care of these folks in the next session. Yes Sir Mr president your concern and and there's no doubt about your heart's in the right place you care for your constituents to care for the Arkansas I appreciate that and I respect that a lot I would just say that medium income is twenty six thousand five hundred twenty six dollars DFA's numbers on those folks we're gonna immediate immediate tax reduction of three hundred sixty five dollars right now this for for a a mother of two that's working three point sixty five dollars is the savings is that a lot has a lot of money no ma'am is not is enough probably know ma'am is not but the end of the day I just think it's important to put get this money back out to the people who need it as far as the inflation goes I mean this all goes back to inflation you know this lady was by paying you know before maybe thirty dollars to fill you know put fifteen twenty gallons of gas in our car just get back and forth to work this immediate savings will actually make a difference in somebody's life right now I don't want to minimize anything you just said I think everybody in this room is sympathetic to. People on the waiting list just I mean you just name it up and down up and down just just take take it because you know I wish I could stand my fingers make it right for the whole wide world absolutely I join you in a heartbeat but but this is what we're tasked with right now to try to get immediate relief to the hard hard working park Kansas out there right now who are suffering in this is the this is my world this is the fastest way to learn how to do it now. Yes go ahead thank you very much I guess my concern is that. Cutting taxes doesn't really help inflation so that we're giving people money but we're not expediting in the of the supply side so that. We give money in their pockets but then this of the demand is not there and so we don't have inflation just goes up so that doesn't really help that person who's getting that little bit of money and yet we're if we pull that money that little bit of money that they're getting if we pull that money then we have money. For all of these programs that need to be funded that we haven't even talked about this member of the committee come back up to the first question because I think you touched on it again I got themselves out correct I can remember something about thirty six so you know I referenced while ago you know DFA that you know they forecast out two years and that you know we can argue but forecasting on the cruise you governor conservative forecast on a server for gas but the end of the day the forecasting right now and twenty twenty three four million dollars above ours. I mean if if we were coming in here and we're actually bumping read line under forecasts and twenty twenty three. You know my my suggestion and leadership meetings I might be saying Hey guys we might not be you know we we might be slow down on this does not cation all right now we're you know which one four hundred some million dollars in twenty twenty three so that gives me confidence that when you come back so I'm not coming back but when you come back next session capping those because you know there's money there to do some of the stuff that you want to do I know like we did that the and in December you know with a lot of folks come down to the end of this table on the duty waiting list right and just about everybody in this community MM respite radical Jack was sitting at just about everybody knows committee want to go on record to support that costs and we also had to a person in here that a list we come back next in our next regular session we're going to we're gonna fix this one tell you right now based on what the if they tell me there's four hundred million dollars there's more than enough money to help fix that because next session so You not all of it person I don't know if I'd ask you questions I don't that make you feel warm and fuzzy I'm just telling that's the best I can do. I I appreciate you thank you jim thank you you're welcome. I feel warm J. R.. Are there any more questions. Represented by a just to comment Mister chairman well want to thank chairmen Jett senator Dismang and senator Gilmore for primarily Jett for encouraging with the one seventy nine portion of this bill when I brought it to him it was a huge a huge price tag and at the time we were limited with what we were going to be able to do in in the session never lost who worked on that thank you for your encouragement thank you for for making certain that this made it to the call and made it to this point today is going to help every business man and woman in the state of Arkansas and and I just want to say on behalf of the committee that your leadership will be missed on this committee and thank you for your service this press for economists are appreciate that and appreciate also you current football down the field on this take this up And just add to the to that issue was real quick we try to do the the one sixty eight with one sixty eight federal the federal government is phasing that out is phasing out twenty percent per year for the next five years that's going to go away so that really kind of got to prospect down I think a price tag to do this was. A hundred and twenty million or something like that Paul is that right I'm sure of it correct. But as a hundred some million totaled over the over the course so This I'm telling all this that that package right there is going to be huge for business owners and farmers and ranchers in the State of Arkansas that people sometimes you do something you know that we really understand have no and you know what the impact would be you know back home and sometimes we do. And sometimes things are not sexy in the increase is not sexy but I'm telling you that this will make a difference between businesses and farmers and ranchers staying in business and not saying businesses will keep people payrolls this will keep this will get the family farmer that struggling you know at the end of the day coming in and the guys at work and fifteen sixteen hours outside coming in his wife's got supper on the table in this state you know I put our heads down and not timely Samper and first thing other masses god please let us bill keep the farm this no one more years give me one more shot at this thing because I'm a start preaching here for second bear with me actual farmers what people understand about farmers for example so if anybody you name me one perform profession that only has forty chances to get it right in their career for example so saline. An attorney a doctor somebody works in the factory somebody's Bill house they got they got multiple paychecks coming on you know they got a lot of times you know whether it's once a week you know twice you know twice a month or monthly or they get paid by the job the House building just you know they do like twenty thirty houses a year whatever the case may be they got this money coming in is rolling right. Farmers not like a gas at the end of the day farmers have forty chances and their career to get it right so most farmers they start with their Daddy one is a may twenty to get out of college to go to work is twenty and all his per twenty five years old sixty five years old you know that stop or slow down let me and turned over to their sons so they missed a farmer to stop and think about this so they miss one crop they have a miss just on one crop right. So it takes to crops to get back to where those that we missed one so that they lose they lose fifty percent in two year period right but it takes a hundred percent to get back to whether a where they are. This right here this this right here will put I'm talking about literally. Tens of thousands not hundreds of thousand dollars back in operation NASA big representative Beatty's bill was so I'm I'm done Pridgen. Okay thank you. Quick follow up okay one sixty eight of the back I can I can guarantee make session we're going to bring that up and work on that. So a lot of the best look to you in the aisle I wish you will now which will. Representative did you have a question. More of a comment Mister chairman if I meant recognized I appreciate words and words mean things and I appreciate this bill very much but we are giving people back their money were returning the taxpayer's money to the taxpayer and that's what I appreciate about this bill these are taxpayer's money that have been over taxed and we are returning it back to those who have paid us and trust us with this so words like giving it back mmhm we're doing the right thing and returning it to the people who earned it so I want to thank you for the bill okay. Mr if you don't care I would like to ask secretary Walter I want to open up like a great big discussion but about secretary water because they have the if you know I've been lit up on this issue on the on the on the save our money if you will and I just he's got a statements when everybody to hear what he's been telling me so that way you hear it straight from the Big Daddy rabbit's math here not just for me so. Big Daddy you're recognized if you're recognized yourself properly for the record Mr chairman thank you the members of the committee Larry wall from the secretary of the department of finance and administration last week representative Jett asked we were talking extensively about the safe harbor or the tax mandate that's called in the let's just in the litigation of and our position on that we provided of a document that was prepared by Robert Breck who would analyze it from the legal standpoint we've gone back to you know I mean I will take you back just a moment we had always known that we have to make this filing and we do it once a year we're the process of the right now. To the department treasury and it has a there's just a. Any much of you here's what you do you go look for this you put it on the form and then you send it to us and it started changing with the. the inflation rates as when we first started this inflation rates were pretty constantly started going up so it got it got the awful cumbersome in my opinion because what will happen you make decisions about what you're doing if you're if this test continues to change so Robert went back and did what back to the the original legislation and the the law in the act that was passed in federal legislation and analyze it what what I'm telling you is the proposal to accelerate the tax cuts will not subject the State of Arkansas to recruitment because we are using our excess revenues are surplus the one point six billion we had this this past year to pay for the tax cuts what we're doing is we're using the Arkema the to pay for our for projects this legislature had the foresight to. To two asco to require us to provide appropriation request for each and every dollar we spend of the arpa of funds and those are identified as far for projects we can only spend them on things are specifically done for that are appropriate for our for they are for the money we're getting from the federal government so that saw what we're doing so we are not using the money for tax cuts so not only that but we're also watching the way we're spending our money to be vigilant that we're not doing it incorrectly either we're watching each and every dollar we're talking to the to the the the business's and the agencies that are asking us for our money and we are making sure that the indirect is not being violated either so we we do not expect to have any if little if any clawback from the money will be spending it and right now we're in a statement in the federal court. the the the the The department of treasury cannot require us to do anything at this point because there's a permanent state as that goes through the appeals process. Thank you Secretary Walters committee you have any questions for the secretary. Thank you okay seeing none of there are a couple people have signed up to speak Regarding the bill I would ask you again to speak to the bill and be as succinct as you can so that everyone can have it turn to speak the first one will be. Bruto showers I hope that's correct. If you just identify yourself for the record please and you're speaking against the bill yes Sir all right you're recognized. One second produce showers Arkansas advocates for children and families thank you for the opportunity to speak today Mister chair. I'm here to express my concerns about the cost of these tax cuts and to speak against making them retroactive. Making the tax cuts retroactive enacting new ones will cost an additional seven hundred fifty million dollars above and beyond the on going revenue losses that have already been priced into the budget. which is bad enough on its own in my opinion but my biggest concern is that we will be eliminating a safeguard that you all enacted when you pass this in December. So with the way that you will route the tax cuts into law in December ensured that if state revenues fail and fail to meet state budget needs between now and twenty twenty five as the tax cuts were facing and they would be frozen wherever they were when our revenues fail to meet our budget needs and we will lose that protection if we make these tech tax cuts retroactive. but I think that this tool to ensure fiscal responsibility is especially important right now and twenty twenty two given our uncertain future economic conditions of the most recent forecast by defining projects that net available revenues in FY twenty three you're going to fall from FY twenty two and that they will fall further up from twenty three to twenty four. But I think even that is potentially optimistic because their model is seen strong economic growth through twenty twenty two and twenty twenty three as well as elevated real wage growth and a twenty twenty four but that seems unlikely given the fact that the fed has announced its intent to raise interest rates it to historic levels at a store a piece as well as the fact that we've had two consecutive quarters of GDP contraction this year so most economists have revised their forecasts and increase the chance that there's going to be a recession within the next few years. I don't want to discount the fact that so many in Arkansas are still struggling with this pandemic in the fallout that it's caused our economy you will know as well as I do with the peoples struggling with skyrocketing rent and housing costs trying to juggle increased family obligations and child care with trying to get to work. but it's not just families that suffering or institutions are hurting to solicit a month ago I read and talk business and all that from the center and health improvement talking about how their staffing shortages in our hospitals and in clinics or at a critical mass right now. last year a report authored by the US chamber of commerce foundation said that our state economy is losing hundreds of millions of dollars every year because people can't access affordable quality childcare and that's also an issue of of staffing and and a lack of public investment in my view of course. in our work force that provides for the most disadvantaged or Kansans like the people on the disability waiver wait list or those that are in or exiting our foster care system those work forces have long suffered from low pay and the staffing and retention issues that causes. And the reason I bring that up is because although thank you thank you your the FAA and and their you know lack of concern or they think there's a minimal risk but there would be no risk at all if we use these the state dollars to invest in these critical services and programs that help parking instance rather than you know exhilarating these tax cuts. And so in summary I know that our Kansans are dealing with elevated hardship already my concern is what happens if we had a recession after we spend on our surplus to pay for tax cuts and how is the state going to manage the twin concerns of lower revenue and increase pressure on public services that's that's all I have for you all and I do appreciate the chance to you know say my piece thank you Mr showers committee members does anyone have questions. Representative Beatty. In your remarks you you reference that the projections for D. F. and they showed a decrease in revenue in the coming year and twenty twenty three an analysis of those did it state that the decrease in revenue would not be sufficient to cover the budget are dated also produce that there would be a surplus in those years it produced that there'd be a surplus which is the reason I bring up that you know that forecast and may I think would be significantly changed if they re did it and and that sort of the sorry to **** why I would like for us to kind of put the brakes on this and wait until January to so we have a better picture of the economic outlook in the future and and he also said in your comments the word if. We go into a recession what do not acknowledge by the definition of a recession that we're in a recession now. Depends on the country you're in the national bureau of economic research is the one that determines whether or not the U. S. is in a recession and I guess they haven't yet made that determination I was just asking if you would make that determination of me I I would just follow the experts there. Thank you is actually what we do here. Okay other any other questions for the committee. Representative wouldn't. Are you aware that we have a catastrophic disaster fund yes Sir. And that is the excess are almost equal to or will be equal to what the surpluses this year. Well it's mandated to be twenty percent away Internal Revenue. I ask you a question well it's not gonna be that are you getting the. Your call answering my questions we'll I know this one point two billion dollar where that we have a surplus plus we have a catastrophic fund set aside yes to hedge against inflation and stuff we cannot control what Washington does but we can control of Arkansas and. You you're if you're saying there were in financial trouble if we go through with this tax code which has already been approved we're just moving it up is that correct. I'm sorry I don't quite understand the question. Are you still are you saying that Arkansas is in financial trouble if we adopt this play. Well as I said my remarks I do think it increases are a risk yes. Thank you Mr okay thank you is there any other questions from the committee. Thank you Mr showers we appreciate your time yeah appreciate your okay there is said no one signed up to speak for there is one more to speak against that said Dr eleven. Recognize yourself for the record please my name is doctor stared eleven on the CEO of Arkansas support network and the president of the Arkansas waiver sociais Asian. Okay go ahead you're recognized thank you for the time to speak today I returned I was here in December I am extremely excited to hear so many references of the DD waiver when I testified in December I might ask at that time was similar to my house today what is that we have a of a in depth look at the service systems in Arkansas that are in adequately funded currently and that we commit to funding those those service systems prior to giving tax cuts particularly tax cuts that go in in in a range that benefit the wealthiest our Kansans to a much greater degree than every day our Kansans I am thrilled for any initiative that's going to benefit farmers on that the daughter of a third generation dairy farmer and understand that plate all too well but I also know that when we look at the largest percentages of the tax cuts that were passed in December and the acceleration that this bill will have to the tax cuts the majority of this money is going to the top tier earners in Arkansas I am here to continue to put on the table the needs of the disability community in Arkansas and specifically the direct support professional workforce that provide services to those individuals when I was here in December I said we have reached capacity where we are not able to compete for work force and we cannot provide supports to the five thousand approximately five thousand our Kansans with developmental disabilities who have been approved for home and community based waiver services and we are now facing the change when I was here in December we had a waiting list that got talked about a lot and I said in my testimony at that time we will. One that waiting list funded we want every our cans and has a disability to receive the services that they need to be able to live quality lives in their communities however the provider infrastructure cannot support additional folks we we can't support the folks that are currently approved for waiver services. In that time between now in December the only change that we've seen was that approximately thirty seven million dollars was moved from the Medicaid trust fund was allocated from the Medicaid trust fund to fund that those folks on waiver there has been no increase in reimbursements from the passes to DD providers we are still offering a very close to a minimum wage reimbursement for direct support professionals and we are competing with fifteen sixteen seventeen dollars an hour reimbursements for fast food and retail entry level positions that calm within a reduced stress and much less complex job duties we can't support the folks who need support the most and prior to xcelerated tax cuts and reducing revenue our ask is that we invest in the service systems that are Kansans with disabilities have every right to receive and that the state has a right to provide to them we have worked collectively with other providers and other associations to bring forth initiatives that we have we know would make an impact in our service industry we've offered up suggestions of career ladder in and we have laid out practices from other states that would be beneficial and we're met with responses from the state that say that DDS and DHS do not have the capacity to implement those types of programs that they're good ideas and they see the value in them but they're departments could not implement those initiatives so while we may have a surplus and while we may have these dollars here today they're on the backs of the folks that rely on our services industry those dollars need to be spent in the investments for our state to operate service systems the way. A that they should be and to make sure that we have capacity to take care of the most vulnerable our Kansans and are asked would be that before we redistribute surplus it particularly to the wealthiest our Kansans that we make that investment. Thank you Dr eleven are there any questions from the committee. Seeing none thank you thank you for the time. Representative Jett would you like to close. Thank you Mr chairman and members I'll just say appreciate the members or a sense of Arkansas coming to speak in opposition to the bill at I think our democracy needs have open debate open dialogue in a clean The common sense respectful manner and I appreciate we both you presented yourself today so thank you very much among thing I would push back on is this this is not just for the wealthy folks a demonstrator while ago that people making twenty four thousand dollars getting a pretty significant tax cut out of this in a plus everybody knows that this this tax cut is already on the books regardless what we do today what they were doing a speeding this up so with that Mister chairman I will be closing I make a motion for do pass. I have a motion for do pass all those in favor say aye. Opposed. The ayes have it congratulations your bill is passed thank you thank you committee members. I want to thank everyone for your patience with me today and we will be meeting tomorrow at the call of the chair will let you know as soon as we know the