Governor Mike Beebe addressed the state legislature Tuesday outlining a path for lawmakers to follow that would make sure Arkansans continue to receive vital services, the state continues to invest in its future, and all those now eligible for Medicaid under federal guidelines have access to that health care option. The last thing we need to do is turn back the clock, sending Arkansas back to the days where education and job growth eluded those who wanted both.

The Governor is right on target with regard to Medicaid availability. Extending Medicaid to all who qualify provides a once-in-a-lifetime opportunity to ensure that nearly everyone in the state has coverage. That includes nearly 250,000 currently uninsured, low-income, working Arkansans who would benefit from the extension.  The positive impacts on the state budget – it will actually save us money – and state economic development are too important to ignore.  As Gov. Beebe said, t will help reduce the “hidden tax of uncompensated care” that we all pay for because hospitals are forced to pass on their financial losses from uninsured people that solely use high-cost emergency care.  And extending Medicaid will help protect the state’s struggling hospitals – many that are located in rural areas – that may be forced to close if the legislature does not proceed with expansion.

Extending Medicaid will also put Arkansas in a better position to compete with neighboring states for new jobs. As more and more states extend Medicaid and provide coverage for the low-income workers that businesses depend on, we do not want to be one of the states at a competitive disadvantage because we denied coverage to those that now qualify.  The Governor is absolutely right: while refusing to extend coverage might send a message to bickering politicians in Washington, it would cost all of us more at home and jeopardize the health of our citizens and state economic development.

We agree with Governor Beebe that, even with a tight budget and pending shortfall for next year, now is not the time to endanger critical public services by adopting tax cuts we cannot afford.  To the extent that any additional monies become available for tax cuts, we agree with Governor Beebe that we should finish the job we have already started with the grocery tax cut. His approach of not proceeding with the grocery tax cut unless and until sufficient resources become available seems entirely reasonable and fiscally prudent to us.

Beyond that, AACF’s approach to this issue is the same as it always been. Once resources have been secured to provide services that meet the critical needs of children and families in areas such as health care, education, and child welfare, any tax cuts should be focused on making the tax system less regressive and fairer for low- and middle-income working families. The average Arkansan pays nearly 12 cents on every dollar they earn in state and local taxes (of all types), compared to the six cents on the dollar paid by upper-income Arkansans. To remedy this, Arkansas should join the growing list of states that have enacted state earned income tax credits – a proven strategy for helping these families out of poverty. Tax cuts that target upper income taxpayers do not meet this threshold and would only further strain a state budget that has not kept pace with the needs of struggling children and families during tough economic times.

As for public education, we agree with Governor Beebe that Arkansans should take pride in the fact that we now rank 5^th in the country on education according to Education Week’s Quality Counts report. Much of that ranking stems from the major policy improvements – including expanding quality pre-k, improvements in school funding and teacher salaries, and improvements in standards and accountability – that we began making in 2003 and 2004 in response to the Arkansas Supreme Court’s Lake View school funding decision. He is also right in acknowledging that we still have a ways to go in student achievement. But the foundation has been laid, and we need to build on that.

What we cannot do is choose the path that some groups have suggested: go backward on our commitment to public schools or abandon the investments we have made in proven programs like quality pre-k, that we know improve opportunities to learn for all students, especially our most vulnerable and at-risk students. Even in tough times like these we need to find the political will and the economic means to protect and expand these investments. The legislature has the chance to take bold action by proceeding with other strategies – such as investing in quality afterschool and summer programs, strengthening school-based health systems, and making sure every child can read proficiently by the end of the 3^rd grade – that will improve student achievement while maintaining our commitment to public schools and our most disadvantaged students. In some cases, this may not even require new resources. If we can ensure local schools spend existing funding dedicated to help at-risk students achieve at the level of their peers, we’ll see even better results.

The path outlined by Governor Beebe is not perfect – we would like to see more resources allocated for at-risk children, early education, and tax equity – but it is without question a positive step toward long-term success for all Arkansans. We look forward to working with him and members of the 89^th General Assembly on behalf of all of Arkansas’s children and families. Together we can continue to make the investments we need to guarantee a bright future for anyone willing to work to achieve it.