POLITICAL PERSPECTIVE With Republicans In Charge, Expect a ‘Narrow’ Government 2014 was a historic year for Arkansas politics, but what will it mean in 2015 for public policy?
leader at the helm. As of press time, a vacancy remains in the securities commissioner post.
Through a larger lens, it will mean a more conservative and business-like approach to government. Arkansas voters sent a clear signal to Little Rock and Washington, D.C. that it wanted Republican rule. Arkansans elected near supermajorities in both chambers of the state Legislature and national voters sent solid majorities to Congress. Translation: a mandate exists for the GOP to push for smaller state and federal government, fewer restrictions and regulations on businesses, and a fiscal discipline towards programs and agencies.
There aren’t a ton of banking reforms to be pondered by the state Legislature. Other than implementing a new federal law allowing banks to offer prize-linked savings (PLS) accounts, there are no cataclysmic efforts coming.
These tenets were part of the Republican mantra and the Grand Old Party’s candidates campaigned on this platform. Voters rewarded them with victories and in 2015 there should be complete justification for many moves and choices aimed at fulfilling those campaign promises. Still, governing is about compromise and Republicans won’t get their way on every push. Quite frankly with their larger numbers, Republicans are no longer a monolithic political party (if they ever were). There is a diversity of thought among members ranging from ultraconservative to libertarian to fiscally conservative to socially liberal, and this spectrum will display itself in a few intra-party squabbles involving public policy. Don’t look for big initiatives at the state or federal level. New Arkansas Gov. Asa Hutchinson and the GOP-controlled legislature will govern from the center-right. His tax cut plan for the middle-class — the centerpiece of Hutchinson’s tax reform agenda — will be phased in and modest in its impact, much like Gov. Mike Beebe’s removal of the sales tax on groceries. It will make a difference, but it may not be felt immediately in the pocketbook like lower gas prices hit consumers. From a financial regulatory perspective, there should be a pro-business shift in state policy. Hutchinson is keeping the well-respected Candace Franks in her role as banking commissioner. He will install former State Rep. Allen Kerr as insurance commissioner, a move that will place an experienced insurance business
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The Arkansas Banker | January 2015
GUEST COLUMNIST ROBY BROCK
At the federal level, the politics become more intriguing. Arkansas will be well-represented in the U.S. House with newly-elected Second District Rep. French Hill, R-Little Rock. Hill, a well-known banker, brings plenty of knowledge and practical experience to his seat in Congress and his appointment to the House Financial Services committee. He knows his way around the maze of federal government due to his previous service in the Bush I White House, where he served as an economic advisor and did a stint at the U.S. Treasury. In a post-election meet-and-greet in the district, Hill offered insight on how he expects the new Congress to approach debate on big issues. In short, don’t expect a “go big or go home” strategy. He says Congress would be wiser to “go narrow” versus “comprehensive.” “Somebody said, ‘I want to ban the word ‘comprehensive’ from the lexicon up there in Congress.’ Because, you know, it’s just hard to get consensus around these enormous pieces of legislation,” Hill said. “They’re too big. They’re too complex. They’re not read. They’re not well understood. They’re being drafted by people who don’t have a lot of experience, frankly, in the area. And so by going narrow, I think you can tackle some things.” An example Hill gave would be loosening credit for homebuyers, which were restricted by the Dodd-Frank legislation. I think Hill is on the right track. Targeted, selective changes to enact or repeal statutes have a greater chance of passage, and I sense there is a greater appetite from the public for a measured approach to governing as opposed to radical swings in either direction. So despite “wide” margins of victory last November, a “narrow” approach to governing may be the blueprint for Republican majorities to remain in power for years to come.
Roby Brock is the Editor-in-Chief of Talk Business & Politics, an Arkansas-based multimedia news organization. Read news or sign up for daily newsletters at TalkBusiness.net.
