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A request to set aside up to $300 million in surplus funds to bring a major manufacturer to West Memphis narrowly cleared a key procedural hurdle Monday despite resistance from Republicans in the Arkansas House as lawmakers entered the final days of this year’s legislative session.
The Arkansas House gave initial approval on a 54-36 vote to legislation outlining the state’s $6.7 billion budget for the coming year after several Republicans objected to the economic development incentives that were included in the bill. The House and Senate are expected to take up votes on the proposal Tuesday.
The incentives, first unveiled late last week, are aimed at attracting a “non-data center,” advanced manufacturing facility that one legislative leader said will employ thousands if Arkansas is selected for the project.
Rep. Hope Duke of Gravette was among several Republicans voicing frustration over the last-minute nature of the request, how it was bundled into the must-pass budget measure and the lack of communication from House leaders.
Opponents said they only learned about the language transferring two batches of $150 million into an economic development incentive fund from news coverage. Duke said Arkansans want transparency into the reasons behind the decision.
“So when we’re talking $300 million wrapped up in this amendment with a whole bunch of other things, it ought to make us pause at least for a little while and get some additional answers to this question,” she said.
The opposition nearly tanked a procedural vote to advance the Revenue Stabilization Act, the must-pass budget measure outlining the state’s budget. Monday’s vote barely cleared the 51 needed to move the legislation forward.
Maumelle Republican Rep. David Ray said it was not the role of the Arkansas government to create jobs by handing out taxpayer dollars.
“I don’t believe that they expect — the taxpayers, that is — for us to redistribute hundreds of millions of dollars of their tax money to profitable companies that most likely have hundreds of millions of dollars in annual profit already, without us giving them anymore,” Ray said.
The $300 million for the West Memphis project was close to what the state typically collects in corporate income taxes across an entire year after refunds, he added.
Past failures to lure major Toyota manufacturing projects to east Arkansas hung over the debate, with representatives pointing to the jobs that ended up in other states. Others talked about how much of a game-changer the project could be for an area that needed a boost after years of economic decline.
“We often talk about sometimes that we want to decrease government benefits, and I’ve often heard the replies, ‘Well, they should just get a job,’” said Blytheville Republican Rep. Joey Carr. “This is an opportunity to provide that job, allow those people to earn a living.”
The language in the amendment to the budget law says that the funds were for attracting a “non-data center,” advanced manufacturing facility to the region.
While the bill as a whole will only require 51 votes to pass when it goes before the House Tuesday, it will need at least 67 votes for the transfer of money for the economic development fund to take effect as soon as the legislation is signed.
Arkansas Advocate is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Arkansas Advocate maintains editorial independence. This article was published with permission from the Arkansas Advocate. Contact Editor Andrew DeMillo for questions: [email protected]. Follow Arkansas Advocate on Facebook and Twitter.
