Our View

Our View

Nothing wrong with a little budget surplus

It has become apparent that Gov. Asa Hutchinson’s political critics who attempted to derail his plan designed to address the financial issues in dealing with the state’s road issues are now realizing the errors of their deceptive ways.

So seems the doomsday predictions that the governor’s financial measures would cripple the state’s surpluses could be no further from the truth based on the news that Arkansas ended the 2015-16 fiscal year with an impressive $177 million surplus.

While the governor’s critics tried to make a big stink over his plans to use some surplus revenues to solve the state’s road issues without raising more taxes as some politicians wanted to do, it is now clear their fear factor tactics were totally off base.

Furthermore, Hutchinson not only intends to stay on course with his leadership direction but now says his goal for the upcoming regular session of the Legislature beginning the first of next year will be to cut more taxes on the hard-working Arkansans further.

Now, you know that has to crawl up the backs of those politicians who tried in vein to raise fuel taxes to record levels rather than better managing existing revenues during the recent special legislative session Hutchinson called to deal specifically with solving the state’s road funding issues.

The likes of Sen. Jim Hickey, along with his political cronies, tried diligently to convince fellow lawmakers that Hutchinson’s highway proposal that called for using 25 percent of surplus general revenue along with other measures without raising fuel taxes would have serious adverse consequences and negatively impact other state agencies.

Hutchinson took the opportunity to prove them wrong the other day during a press conference touting the news of the revenue surplus by saying the significant surplus was the direct result of proper budgeting and strong leadership.

The Republican governor also made the point the surplus also is the result of a growing economy fueled by the cuts to the individual income tax rate that were enacted by the 2015 Legislature.

Hutchinson also wanted to make it clear, to the dislike of some of his critics, that he’s “sent the signal that there will be additional tax cuts upon the agenda of the next regular session of the Legislature,” and that his priority is reducing individual income tax rates.

Naturally, such an announcement drew caution from those skeptical lawmakers who said that lawmakers need to be responsible and “not dive off a cliff,” as if the actions and directions taken so far by Gov. Hutchinson have been irresponsible.

Regardless of the progress being made in being fiscal responsible, as well as focussing on ways that make Arkansas more competitive, there will be resistance from the liberal left that want to continue to focus on higher taxes to support failed programs that do nothing to improve the quality of life they were supposedly designed to do.

Gov. Hutchinson certainly has reason to celebrate knowing the leadership he is demonstrating is paying off.