Thompson looks ahead to historic fiscal session

"We're breaking new ground," State Sen. Robert Thompson of Paragould noted of the upcoming fiscal session of the Arkansas State Legislature. "The amendment approved by voters in 2008 provides for up to a 30-day fiscal session, which can be extended by 15 days with a two-third vote by both the House and Senate."

"I am sure that the primary focus will be on passing a budget for 2010-11," the second term Democrat added. "But we are facing a difficult time as revenue has been down from both the previous year and from our budget forecasts."

Thompson noted that cuts in revenue have already forced Gov. Mike Beebe to adjust the budget for the current year twice. "We're going to have to be very cautious in the way we budget the state's income for the coming fiscal year," he said.

"The only non-budget matter that should come up for consideration will be setting the amounts for scholarships from the new lottery," Thompson noted. "The amounts of the scholarships will be based primarily on the level of net income," he added.

Thompson, who serves on the Lottery Commission Oversight Committee within the legislature, also noted that initial revenue estimates were on the low side. "The Lottery Commission first estimated that they would bring in around $100 million per year and they've increased that to around $112 million," he said. "In full disclosure I must say that I didn't vote for the lottery, and I felt there were better ways to fund higher education --- but the voters of Arkansas made that choice and I stand behind that," he added. "Looking back now I must say that passing it was a good thing and I think it will be good for the state in years to come."

Legislators are expected to decide on scholarship amounts during the fiscal session, with amounts set for both two and four-year institutions. "There will be a lot of variables, including how many people apply, but we're looking at scholarships of around $5,000 or slightly less," Thompson added. "That is a figure that we feel is sustainable."

Thompson said lottery officials will be running computer models, as they factor in such variables as the retention rate of students, in determining how much of the money generated by the lottery can be dispersed in coming years.

"A lot of people ask about what students would be eligible for the scholarships," he continued. "They must be a resident of Arkansas and a graduate of an Arkansas high school, must score at least a 19 on their ACT, carry a 2.5 GPA and take the SMART core curriculum to attend a public college --- while the 2.5 GPA is required for private schools."

Currently, committee meetings are being held in Little Rock in preparation for the fiscal session, and the pre-filing period is underway for budget related legislation. The session is scheduled to begin Monday, Feb. 8.