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(June 2008) A long-stated goal of Arkansas state government officials is achieving 100 percent parity with the U.S. average in terms of per capita personal income (Bureau of Economic Analysis). Government economic development officials have led this quest, which at times as appeared similar to the search for the Holy Grail. That is to say, […]

One educational group escaped scrutiny in the consolidation debate that occurred after the Court’s decision in Lake View: Arkansas’ education service co¬operatives. Much of the debate about K-12 consolidation revolved around the student enrollment threshold to be used as criteria for closing districts. Gov. Huckabee proposed a 1,500 threshold and some legislators suggested a lower […]

Arkansas has the highest income tax rate among the states that border it, according to 2008 data compiled by the Federation of Tax Administrators. The group has published a chart that shows Arkansas has a top rate of 7 percent. The chart can be viewed at: http://www.taxadmin.org/fta/rate/ind_inc.html The following chart lists area states and their top […]

(April 2008) Economists from the St. Louis Federal Reserve Bank, the Univ. of Arkansas and the Policy Foundation participated in a recent forum on the Arkansas economy that aired statewide on public television (AETN). The monthly show, ‘Unconventional Wisdom,’ is hosted by Stephens News Bureau columnist David Sanders, and can be viewed at: http://www.aetn.org/production/podcast/unconventional_media/march_28,_2008 Michael Pakko […]

  “In order for Arkansas to move from a low-wage to a high-wage economy, the state needs to decrease marginal tax rates …in order to attract (high-income) workers to Arkansas.” (“Taxes And Savings in Arkansas.” Murphy Commission, 1998) (April 2008) Arkansas employment growth trailed the U.S. in 2007, the fourth consecutive year that job creation in […]

“The state’s income tax should be reduced … Consider an across-the-board cut, reduce the marginal rates, exempt taxpayers below a certain income level from filing, and expedite the process of indexing for inflation (Improving Productivity by Reducing Taxes and Taxes and Savings in Arkansas, Murphy Commission, 1998) Summary: Individual income tax brackets, in response to […]

Performance-based budgeting would require state government to develop quantifiable measures for all functions and then allocate tax dollars based on the effectiveness of meeting performance goals. Activities-based costing allocates tax dollars in a consistent and uniform manner. The Murphy Commission, a Policy Foundation project recommended both ideas in 1998. Gov. Beebe sponsored a performance-based pilot […]

“Democratic Gov. Bill Richardson of New Mexico has cut income and capital gains tax rates to make the state’s economy more competitive, and his state is creatng jobs at one of the fastest rates in the U.S.” Policy Foundation column in the Arkansas Democrat-Gazette, July 13, 2004 Once upon a time many economists did not accept the […]

Arkansas is one of the poorest states in the nation, and also one of the least healthy according to health surveys. Proponents of a ‘Healthy Arkansas’ emphasis on prevention contend that more widespread use of good habits could have a profound effect on families, businesses, schools, faith-based groups and healthcare providers in the state. The […]

  “(T)ax proposals should be submitted to a process of dynamic scoring in order to assess the economic impact. Findings should be reported to the public before enactment of the policies.” (Murphy Commission, 1998)   (March 24, 2008) Arkansas legislators will rely on a state revenue estimate based on an $8 natural gas futures contract […]