Arkansas Update

Elections

Candidates for US House and Senate seats in Arkansas released their funding reports. Democratic Senator Blanche Lincoln is running for re-election and has raised $4.12 million. Tom Forcola of Little Rock and State Senator Jim Holt have announced their bid for the Republican nomination for this seat. Forcola put in his bid after the New Year and Holt has raised under $5,000, exempting both of them from reporting their donations under FEC rules.

Taxes

The Arkansas State Senate approved the largest tax increase in state history. The Senate passed a 7/8th cent sales tax increase and expanded the tax to some business that were previously exempt, costing the people of Arkansas $377 million. Corporate franchise taxes were also raised by $8 million. These tax increases were in response to a State Supreme Court ruling that the old education funding formulas were unconstitutional. Governor Mike Huckabee opposed the tax increase, favoring school district consolidation instead.

The State House of Representatives passed a plan to tax advertising sales out of committee. Some say this law, even if passed, could be struck down because it would be a violation of free speech.