Beebe Still Focused on Grocery Tax Cut

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Matt DeCample said Gov. Mike Beebe knows a looming $250-$400 million Medicaid budget shortfall could be the recipient of the bulk of a $191 million state surplus.

“I think everyone agrees the first call on that money is going to be on our suspected Medicaid shortfall,” said DeCample, Beebe’s spokesman. “How much of it? We don’t know that yet?”

DeCample said one-time higher education capital needs, the Quick Action Closing Fund used for economic recruiting, and repealing the rest of the grocery tax are likely priorities for Beebe’s proposal to spend the surplus.

The grocery tax, which Beebe has successfully pared down to 1.5% with support from the General Assembly, is “on the forefront of his mind when you’re talking about any potential tax cuts for the next session,” said DeCample. Click here to read the full story from our partners TheCityWire.com.