Arkansas Gov. Mike Beebe has proposed a $4.47 billion budget for fiscal 2010 that includes a reduction in the sales tax on groceries to 2% from the current 3%.
The governor supported the successful effort to cut the grocery sales tax to 3% from 6% in the 2007 legislative session.
Beebe’s initial budget plan for 2010 includes a $4.62 billion general revenue budget, up $205 million from fiscal 2009. The current proposal is for an increase of only $59 million, or approximately 1.3%, from 2009.
Richard Weiss, director of the Department of Finance and Administration, told legislators last week that the $146 million difference between the two proposals could be made up from an expected surplus of $300 million in fiscal 2009, or from the general fund if revenue collections are greater than expected.
Beebe also suggested a general revenue budget in fiscal 2011 of up to $4.8 billion, but he said the proposal is just for discussion as the legislature will meet in 2010 to consider the next year’s budget.
Voters in November approved a constitutional amendment that requires annual budget sessions of the General Assembly.
