were approved for Senate Bill 5 to transfer about $105 million in unused tobacco settlement money to the state’s long-term reserve fund. Under the terms of Senate Bill 5, these funds can now be tapped for budget shortfalls by Governor Hutchinson with approval by the Legislative Council.
The Arkansas House passed the measure 70-24 Wednesday during a special
legislative session. Local Representatives Scott Baltz, David Branscum, Jack Fortner and Michelle Gray voted in favor. Representatives John Payton and Nelda Speaks voted against.
The Senate had already approved the proposal, with local Senators Scott Flippo and Missy Irvin voting in favor and Senator Linda Collins-Smith voting against. The bill now awaits Governor Asa Hutchinson’s signature.
Split votes were similar in the passage of Senate Bill 3 amending Arkansas works to reduce income eligibility limits and impose work requirements.
Hutchinson and other supporters of the tobacco settlement bill say strengthening the reserve fund is needed to improve the state’s bond rating.
Opponents like Democratic Representative Michael John Gray say the transfer would circumvent a law voters approved in 2000 that directs the Arkansas Healthy Century Trust Fund toward health programs.
Gray says he understands the motivation to have a strong reserve fund, but that lawmakers should not go against what Arkansas voters approved.
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