Program to aid economy slow in getting state funds
Posted on Wednesday, September 24, 2008
The chairman of the Accelerate Arkansas program said Tuesday that his group hasn’t done a good job of persuading Gov. Mike Beebe to fund its economic incentive ideas.
During the 2007 legislative session, Beebe said he planned to spend about $ 30 million of his share of the state’s General Improvement Fund on initiatives promoted by Accelerate Arkansas, which is a group of business leaders and others with the goal of raising incomes in Arkansas.
But so far he has released about $ 4 million of that money.
“I’d say we get an A for our legislative approach and a D in convincing all the leaders that these funds need to be released now,” Watt Gregory of Little Rock, chairman of Accelerate Arkansas, said in an interview after giving a presentation before the House and Senate Committees on Agriculture, Forestry and Economic Development.
The Accelerate Arkansas legislation in 2007 was sponsored by state Sen. Bob Johnson, DBigelow. Beebe said at the time that he was excited about the programs.
Beebe has until June 30, 2009, to release the money, which was appropriated for fiscal 2008 and 2009. He has $ 187 million to distribute from his share of the General Improvement Fund approved during the 2007 session. He has spent about $ 65 million, leaving about $ 122 million.
Beebe spokesman Matt De-Cample said the governor plans to release more money for the Accelerate Arkansas programs but can’t say when or how much.
“The $ 30 million is a number we’re clearly not going to get to,” DeCample said. “It was put out there [last year ] as a maximum. [Accelerate Arkansas ] is a program that has promise for our state. There will be more money released in the coming months. We’ve got a lot we’re still looking to do in a lot of areas of state government.” Gregory said he’s disappointed but understands.
“There are a lot of competing needs in the state, and there is always more need than resource,” Gregory said. “We’ve met with the governor several times. We’re just going to have to try harder.” Johnson, scheduled to be Senate president pro tempore during the 2009 legislative session, didn’t immediately return a phone message.
Of the group’s initiatives, the one that has received the most money from the governor, $ 2. 6 million, has been the Seed Capital Investment Program, which is administered by the Arkansas Science and Technology Authority to foster development of technology-based companies.
Innovate Arkansas, which provides planning and mentoring for companies that can demonstrate a “fast-growth potential,” has received $ 600, 000.
The Arkansas Research Alliance, which is a collaboration among state colleges to promote investments in research, has received $ 250, 000.
Gregory told legislators to expect the group to ask them for several additional incentives for businesses in 2009.
Among those are a constitutional amendment to allow the state to invest in private companies and expanding existing incentives to allow tax breaks to smaller companies that don’t meet current income requirements.
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