HEALTH: This week, Gov. Hutchinson’s plan to continue the Private Option through 2016 passed in the Senate. This bill will also create a legislative task force to make recommendations about the future of the Private Option and comprehensive changes to the Medicaid program. Similarly, the Joint Budget Committee recommended approval of the DHS Division of Medical Service appropriation bill, Senate Bill 101, which allows the Private Option to be funded through June 30, 2016. However, some resistance to funding the program for another two years remains. Opponents of the program unsuccessfully introduced two bills aimed at repealing the Private Option and ending health coverage by the end of year.

EDUCATION: Education legislation is off to a slow start. Few bills have been run in either the Senate or House and none have gone through both houses. The Governor’s budget plan was released this week with no funding designated for pre-K or after-school and summer programs. Facilities funding needs were met. The Governor says pre-K funding is a priority but that isn’t consistent with his actions. There are indications that some efforts are being made to find funding within existing resources. There was some confusion this week about federal grant funds received in December of 2014. But, 93 percent of children currently in the ABC program cannot benefit from the federal pre-K expansion grant, per federal grant restrictions. We continue to work to secure funding for pre-K and after-school and summer programs through discussions with members of both parties and the Governor’s office.

The Arkansas Campaign for Grade Level Reading is hosting a legislative breakfast next week Wednesday, Feb. 4th. Everyone is welcome and all legislators are invited.

TAXES: The House Committee approved a version of Governor Hutchinson’s middle-income tax cut that reduces, instead of repeals, the capital gains exemption that was passed in the last fiscal session. Keeping part of the 2013 capital gains tax cuts adds another $10 million hole to the state budget and primarily benefits a relatively small number of wealthy Arkansans who make money from the sale of investments.