State's Leading Small Business Group Comments on Governor's Address
CONTACT: Sylvester Smith, 501-801-1974 or Todd Pack, 615-872-5897
Gov. Beebe understands issues affecting Arkansas' entrepreneurs, family-run businesses
LITTLE ROCK, Ark. -- Sylvester Smith, state director of the National Federation of Independent Business, issued the following remarks today in response to Gov. Mike Beebe's annual State of the State Address:
On the issue of the recession
"These are challenging economic times and if Arkansas state government is going to continue to avoid massive revenue shortfalls, then Arkansas businesses must remain viable. One key to protecting business viability is to hold the line on taxes, as the governor has done with his proposed budget.
"Small businesses account for about 97 percent of all businesses in Arkansas and 48 percent of the private-sector workforce, making small business the state's largest employer. As such, we see the value in the governor's efforts to increase the college graduation rate in Arkansas. Expanding the GO opportunity grant program to non-traditional students will give many Arkansans the resources needed to achieve their dream of a college education. His plan to pay for these grants using lottery revenue will provide these opportunities without creating an additional burden on small businesses and other taxpayers.
On the creation of a rainy-day fund
"Most Arkansans put money away for lean times. It's high time that state government does the same. We support Governor Beebe's proposal to use some of the revenue surplus to create a rainy-day fund. The fund will give the governor and Legislature a tool to address future revenue short falls without raising the taxes of the hard-working Arkansans.
"While we do have some concerns about the lack of transparency in the use of the governor's quick closing fund, we cannot argue with its effectiveness. The fund helped the state bring in $2.7 billion in investment and 19,000 new jobs over the past two years. The Legislature should replenish the fund and establish a more transparent process to manage it.