By DAVID NICHOL
T-H Staff Writer
In what is already the longest special session on record, the Arkansas Legislature is considering some ways to raise the funds needed to reform education -- namely, to find the money for a revised funding formula.
State Rep. Danny Ferguson said there are all kinds of tax proposals out there. However, only one has been passed out of the House Revenue and Taxation Committee, on which he serves.
"The only one that's made it through House Revenue and Taxation is one that went through Friday," said Ferguson. "It calls for a 7/8 cent increase, and also expands sales and use tax to several service areas. It also revises the way vending machines are taxed."
As of this morning, the bill has only passed out of committee. It has yet to pass the House or Senate.
Ferguson said it's estimated that the bill would raise about $363 million of the over $400 million that is needed.
"Today we're going to hear about a bill to increase the corporate franchise tax, which would raise about $14 million extra. So we're getting closer," said Ferguson.
He said some of the money is expected to come from natural growth.
Other possible taxes have been suggested. The Senate has passed a full 1 percent sales tax increase.
"The feeling right now in the House -- and that bill has not yet come to the House committee -- that it is probably going to have a little more trouble passing than the 7/8 percent tax," said Ferguson.
"There are all kinds" of proposals, he said. "There is a 5/8 cent proposal and a half-cent proposal. But they just don't raise nearly enough money."
Ferguson said there is also a proposal to remove the sales tax exemptions from many more services than those included under the plan already passed out of the House committee.
Under the plan which the Revenue and Taxation Committee has passed, the expanded sales tax would include the following services: Boat storage and docking fees, body piercing, camping spaces, dry cleaning and laundry, electrolysis, industrial laundry services, initial installation labor services, locksmith services, mine-warehouse and storage rentals, parking lot and gutter cleaning, pest control, pet grooming, replacement flooring, security and alarm monitoring services, solid waste disposal, tattooing and wrecker and towing services.
"Really, the aggregate of all those service expansions in the scheme of how much we need -- it doesn't generate a whole lot of money," said Ferguson. "But I think there is a strong feeling at this point to try to keep the sales tax increase under a penny. And one option is to expand the list. If that isn't done, then you're looking at needing a fully 1 percent."
Ferguson said lawmakers believe "our backs are against the wall."
"I don't think there is a person over here, in the House or Senate, who wants to raise taxes," he said. "But we really have our backs against the wall. The pressure is on the Legislature to do some tax increases. When you look at the alternative, the alternative is pretty bleak."
The alternative would be having the court take over.
"If the Legislature does not pass the tax increases, there is a pretty solid feeling that the courts will step in," said Ferguson. "And the courts will find a way to fund the new formula. They would probably direct that the $400 million (plus) dollars be pulled out of other state agencies. Then the Revenue Stabilization Act (preventing deficit spending) would kick in and require that all state agencies be slashed across the board."
He said a 20 percent across the board cut wouldn't shut down state government completely, "But you're going to have thousands of people on Medicaid and in nursing homes that will probably become ineligible."
He said it could force large layoffs, early release of prisoners from state facilities, cutbacks for state police and public health, among others.
The Legislature is trying to comply with a November, 2002 ruling by the state Supreme Court that Arkansas' method of funding public education is both inadequate and inequitable.
Also, the House was expected to reconsider proposals this week for a $10 million assessment of school buildings statewide and a plan to create new divisions of accountability and public school facilities within the state Department of Education.
A $40 million proposal to expand preschool programs also awaited final legislative approval.
''I'm kind of optimistic. I think there's a real chance we may get out of here Wednesday or Thursday unless things get bogged down in the House,'' said Sen. Jim Argue, D-Little Rock, chairman of the Senate Education Committee.
The House could vote as early as Monday on a sales tax package anchored by a 7/8 cent sales tax increase Monday. The Senate already has passed its own proposal to raise the sales tax a full penny.
Legislators must raise more than $400 million a year in new revenue to fully fund a $2.7 billion public school funding formula signed into law by Gov. Mike Huckabee Jan. 15.
A 5/8 cent sales tax increase also is headed to the House. Its sponsor, Rep. David Evans D-Searcy, said the plan could be a fall-back if a higher tax doesn't pass.
But legislators appeared to reaching consensus on the 7/8 cent proposal, which would also expand the sales tax to some previously untaxed services such as dry cleaning and pet grooming.
The building assessments in SB7 are needed to begin repairs to bring the state's 5,700 public school buildings up to an adequate standard. Legislators are expected to consider funding of up to $1 billion in building improve in the 2005 regular legislative session.
House members have voted down funding for the assessment, saying an Arkansas company could do the work for less than the Ohio company recommended by a task force.
The bill to create the departments of accountability and public school facilities, HB1119, would help with the building improvements and a bill approved earlier in the session to hold schools accountable for student performance.
By DAVID NICHOL
T-H Staff Writer
Some people may have noticed something about the unfinished portion of the Forrest City bypass -- nothing much is happening.
There's a good reason, and it's called Mother Nature, according to Ray Woodruff, district engineer with the Arkansas Highway and Transportation Department.
"With the weather we've had," Woodruff said, "wet and cold, it just hasn't been real conducive for trying to do anything."
He said the combination of wet and cold is a real problem.
"It's even worse when the ground gets wet and then freezes and thaws," he said. "That just makes the dirt harder to do anything with."
When asked, Woodruff agreed that this area usually has a wet spring also. But he said that once things dry out, there should be plenty of time to get all the work done this year.
The southern leg of the bypass officially opened Nov. 5. That section connects Ark. Highway 1 South with U.S. Highway 70 (Broadway).
The northern leg, when complete, will continue to Highway 1 North. The completed project will also have interchanges at Highway 70 and Interstate 40.
According to statements made at the opening of the southern leg, Forrest City leaders have been trying to get a bypass since 1964. The southern leg is expected to provide better access to the Federal Correctional Institution-Forrest City as well as a lot of land along the way. The northern leg, it's hoped, will bring in new businesses and industries. The city also wants to build a fire substation somewhere along the north leg of the bypass.
After a series of public meetings and bid lettings, construction on the highway project began in 2000.
By KENDALL OWENS
T-H Staff Writer
A controversial railroad crossing in Palestine could have crossing bars installed if the city agrees to allow the state to install locked gates at a second crossing.
According to a letter from Arkansas Highway and Transportation Department Director Dan Flowers to Representative Danny Ferguson, the Highway 261 crossing in Palestine could have gates added if the city of Palestine agrees to close the Farrar Street crossing by installing locked gates.
According to the letter, in 1997 the AHTD also offered to install gates only if the Farrar Street crossing was closed. Officials in Palestine expressed concern that the closing of the second crossing would limit accessibility to the area for residents and emergency personnel. In the letter dated Dec. 22, 2003, Flowers told Ferguson that the Farrar Street crossing could have locked gates which would close the crossing to normal public travel, but could be unlocked for emergency purposes.
According to Ferguson, he contacted the AHTD at the request of Palestine Mayor Willetta Carroll.
The letter also concerned improving the grade of the Hwy. 261 crossing to allow for easier travel for tractor trailers. "The mayor contacted me on a couple of issues with the crossing and at their request I spoke with Dan (Flowers). This letter was simply his response to our meeting," Ferguson said.
According to Ferguson he also asked that the letter be forwarded to Carroll. In March of last year, two Palestine-Wheatley High School students were killed at the Hwy. 261 crossing after being struck by a westbound train. In October, the children's step-grandfather was also involved in an accident at the crossing, but was not injured.
At the October meeting of the Palestine City Council, residents voiced their concerns over the crossing, but no action has been taken by the council. Carroll could not be reached for comment this morning, and Ferguson said that he also had not spoken with her regarding Flowers' letter.
In a March 19, story in the Times-Herald, John Waldrip with the AHTD said that the fatal accident was the second over a 15-year period. Although there are no concrete numbers, officials in Palestine say that there have been between eight and 11 fatalities at the site since the 1940s.
Baptist Memorial Hospital-Forrest City is suing a physician for alleged breach of contract.
The suit was filed recently in circuit court against Paul Neblett, M.D., of Shelby County, Tenn. The suit alleges that Neblett entered into a contract with the hospital to provide medical services.
The suit alleges that the hospital loaned Neblett $30,000, evidenced by a promissory note dated Oct. 2, 2000. Neblett began his medical practice in Forrest City on or about Nov. 1, 2000, and received advances, draws, loans and payments totaling $494,309.93, the suit states.
The hospital alleges that under the terms of the contract, the money was to be repaid. However, the physician did not have to repay as long as he remained in full compliance with the agreement. Also, the outstanding principal would be reduced 25 percent for each full year after Jan. 31, 2003, that the defendant maintained a practice and complies with the agreement.
The suit alleges that Neblett stopped practicing medicine in Forrest City on a full-time basis on or about Jan. 2, 2003, meaning he was no longer in full compliance with the provisions of his contract.
The hospital is seeking the $494,309.93, plus $124,223.87 in interest, for a total of $618,533.80. The hospital also asks for $40,694.03 under the promissory note of Oct. 2, 2000. The hospital also asks for attorney fees and other costs, and "further relief to which the plaintiff may be entitled."
Drugs confiscated during a routine traffic stop Saturday afternoon have been easier to identify than the occupants of the vehicle in which they were found.
A trooper with Arkansas State Police Troop D in Forrest City discovered the drugs during a traffic stop near Forrest City about 4:30 p.m.
A spokesman with Troop D said one kilo of cocaine, valued at $100,000, and six ounces of heroine, valued at about $40,000, were found inside a compartment in the vehicle's gas tank. The two men allegedly gave false names to police.
One man told police his name is Saul Esquado, 26, of Charlotte, N.C., and the second suspect told police his name was Julio Barjas, 23, no address given. Esquado is charged with no driver's license, possession of a controlled substance with intent and possession of drug paraphernalia. Barjas is charged with criminal impersonation, forgery, possession of a controlled substance with intent to deliver and possession of drug paraphernalia.
Although police suspect the two men gave false identifications, they were scheduled to be arraigned in St. Francis County District Court this afternoon under the names offered to police during their arrest until their identities are verified.
A Heth man was taken to a local hospital Friday afternoon after a hunting accident in which he was shot in the leg.
Jessie Thompson, 22, of Heth, told deputies with the St. Francis County Sheriff's Department that he was hunting in woods in the Heth area when his rifle got caught in some wire and discharged. Thompson was struck in the upper right leg.
He was treated and released at Baptist Memorial Hospital-Forrest City.
The 25th Arkansas Agricultural Expo will be held Tuesday, Feb. 3, at the Forrest City Civic Center, with the topic, "Selling for More in 2004."
The doors will open at 7:45 a.m., and educational meetings will take place from 8:30 a.m. and continue through the day, with the last session beginning at 3:15 p.m. Sessions will include commodity marketing and precision technology tools for agriculture.
The Agri Expo is sponsored by the University of Arkansas Cooperative Extension Service offices in St. Francis, Crittenden, Cross, Lee and Monroe counties.