From the Director’s Desk

County Lines

Magazine

County Lines is the official publication of the Association of Arkansas Counties. It is published quarterly. For advertising inquiries, subscriptions or other information relating to the magazine, please contact Scott Perkins at 501.372.7550.

Executive Director / Executive Editor Chris Villines Managing Editor Scott Perkins

AAC Executive Board:

Mike Jacobs – President Roger Haney – Vice President Danny Hickman – Secretary-Treasurer Sherry Bell Debra Buckner Rita Chandler Jim Crawford Vacant position Jimmy Hart Judy Beth Hutcherson Leonard Krout Faron Ledbetter Skippy Leek Gene Raible Danny Russell Johnny Rye Debbie Wise

National Association of Counties (NACo) Board Affiliations

Alvin Black: Public Lands Steering Committee. He is the Montgomery County Judge. H.O. Gray: Chair, Aging Subcommittee of the Human Services & Education Steering Committee (Subcommittee chair). He serves on the Jefferson

County Quorum Court. Roger Haney: Board of Directors. (He is the

Washington County Treasurer.) Ted Harden: Finance & Intergovernmental Affairs

Steering Committee. He serves on the Jefferson

County Quorum Court. Haze Hudson: Community & Economic Development Steering Committee. He is a member of the

Miller County Quorum Court. David Hudson: Chair of NACo’s Justice and Public

Safety Steering Committee. He serves as Sebastian

County Judge. Mike Jacobs: NACo Board of Directors, the Membership Committee and the Agricultural & Rural

Affairs Steering Committee. He is the Johnson

County Judge. Buddy Villines: Transportation Steering Committee.

He is the Pulaski County Judge. Reflections on 2011

Director’s Desk

Another fresh new year

As 2012 dawns upon us, it is time to reflect on past accomplishments and hope for future ones. But planning the next year Chris Villines requires you to survey the landscape AAC ahead. The mountains and valleys in front of us help Executive Director determine the path to our dreams,¬ both personally and in relation to our careers.

To that end, a time to reflect on the year just closed is in order. The last year has been one of struggles, victories, celebrations and somber moments. Chalked up as a victory is that the 88th Arkansas General Assembly has come and gone, and by all accounts it can be deemed a rousing success for the counties of Arkansas. This can, in small part, be linked to the bills that we prepared and got passed. But a larger, more effective measure of our accomplishment is the elimination of hundreds of bills, some of which could have had a profoundly negative effect across the state.

But 2011 had its terrible disappointments as well. The losses of AAC Communications Director Randy Kemp and Lafayette County Judge Frank Scroggins (see tributes to both throughout this issue of County Lines) were difficult times for us all. It is in times like these that the best character of our counties comes out.

We are a resilient sort. Be it dealing with constituents or running campaigns, lobbying at the capitol, budget cuts or implementing new laws, our county offices continually beat back impediments. The good news is that we face adversity well.

Unfortunately, tough economic times found their way to all of us. We are fortunate that our difficulties pale beside many in other parts of the country, but we had to deal with some financial setbacks nonetheless. We are currently working our way out of the deepest recession since the Great Depression. Thankfully our government survived that crisis and I relate to President Harry S. Truman, who once said: “The only thing new in the world is the history you don’t know.” We have been here before.

Looking into the 2012 crystal ball, I believe our tough economic times are not over, and despite all efforts to continue funding at current levels, the year ahead will be difficult. AAC President and Johnson County Judge Mike Jacobs joined me in a recent trip to Washington, D.C., where we heard from federal leadership regarding expected budget cuts. What we left with was the sobering reality that shrinking dollars present a real problem nationwide for counties and the services we are mandated to provide.

Trickle-down economic theory has long been a part of American politics and its merit has been hotly debated and its success arguable. What is not arguable is that we have entered into a new era of major cuts and that these cuts do indeed trickle

all the way down to county levels.

The federal budget is comprised of three main categories: discretionary, mandatory and interest payments. With mandatory spending and interest payments largely inflexible, it is obvious that in order to cut the federal budget, discretionary spending is the target. The bad news for us is that most aid given to counties comes directly from this discretionary spending sector.

Thanks to the efforts of the National Association of Counties (NACo), along with Arkansas county elected officials and AAC staff, programs such as PILT (Payment in Lieu of Taxes) and Secure Rural Schools Funding will likely remain intact, although funding may drop off as much as 40 percent, possibly more. Grant dollars for everything from security to community development block grants are evaporating quickly. Funds given to states to help with Medicaid and other programs are fading, putting incredible pressure on states to come up with their own sources of revenue to continue the programs.

Shifting money at a state level to supplement some of these expected cuts means no growth or cuts in other areas that fund counties. Suffice it to say that the belt is being tightened all around. Falling or stagnant property tax revenues are also hitting us directly, not to mention month after month of lower sales tax collections. Although we’ve taken some knocks, the news is not all bad.

Arkansas is positioned very well to handle these stressors. Instead of cutting areas to make up for federal losses, the leadership in Arkansas has exhibited great fiscal responsibility. Growth in state revenue is going to shore up these new costs. Our balanced budget puts us in a group of only a handful of states that are not drowning in red ink. The credit goes to Gov. Mike Beebe, responsible legislators and competent state fiscal staff that carefully and closely inspect our budget and any proposed shifts.

Arkansans have a great tradition of resiliency. Our ability to handle adverse conditions has kept us in the proper frame of mind. County officials recognize that we may very well be through the hardest part of this downturn. Sales tax revenues for the state (and counties) are beginning to see an uptick, small though it may be. And having already been through some govern-

ment shrinkage, we find ourselves preparing for, instead of reacting to, revenue shortfalls. Property values in Arkansas have stabilized, with some areas seeing increases. This primary source of revenue for our county government has been hit in recent years. As the nation pulls out of the economic doldrums, we can expect a slow but steady climb for these figures. The Association of Arkansas Counties is hard at work preventing cuts from the state. The staff here is watching both the 2012 “Another fresh new year is here . . Another year to live! fiscal session and the 2013 general session closely as we work to prevent unfunded mandates and cuts To banish worry, doubt, and fear, that directly impact counties. To love and laugh and give! If there is one thing I have learned over time, it is that the This bright new year is given me To live each day with zest . . . key to understanding county government is to know that we are the people who relay good or To daily grow and try to be bad news directly to the citizenry. Neither state nor federal governMy highest and my best! ment officials have to look across I have the opportunity Once more to right some wrongs, the table and deliver the volume of news to constituents like we do. I believe that 2012 will have its To pray for peace, to plant a tree, share of struggles, and county officials will sometimes have to give And sing more joyful songs! ” bad news that is trickling down to us. But as I look ahead, I also find William Arthur Ward, American Scholar great opportunity as the economy slowly turns around. So many things about 2012 will be out of our control -- the economy, the Mayan calendar, natural disasters and elections to name a few -- but what gains the respect from people statewide for our counties is outlook and attitude. As we plan ahead for the new year, there is no doubt that in the counties there is unbridled optimism and cheery attitude as we do what we do – helping people. To that end, I wish all of you a wonderful 2012. Let’s smile, laugh, live zestfully and win victories together! Chris Villines Chris Villines AAC Executive Director