Budget Projection Does Not Factor Cut in Grocery Tax

NOVEMBER 9, 2006 - Posted at 3:54 p.m. CST

LITTLE ROCK, AR - The balanced budget recommendation and revenue forecast presented to legislators today does not take into account any tax cuts.

One of Governor-elect Mike Beebe's campaign promises was phasing out the six-cent grocery tax.  The $843 million surplus projected for the next biennium uses current law to work up the numbers.

State Finance and Administration director Richard Weiss says he did not factor any tax eliminations into the forecast.

State Senator Jim Argue says legislators need more guidance on how much of the surplus is one-time money and how much could be expected as an ongoing surplus.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)