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B- for Arkansas on Transparency of Government Spending

The Natural State's score of 80 was a significant improvement from last year’s 69.
BOSTON, MA (News release) - Arkansas gets a B- when it comes to government spending transparency, according to “Following the Money 2014: How the 50 States Rate in Providing Online Access to Government Spending Data,” the fifth annual report (see attached) of its kind by the U.S. Public Interest Research Group Education Fund. 
 
“State governments across the country have become more transparent about where public money goes, providing citizens with the information they need to hold elected officials and recipients of public subsidies accountable,” said Phineas Baxandall, Senior Analyst with the U.S. Public Interest Research Group Education Fund. "We're hoping that Arkansas will be a leader next year."
 
Officials from Arkansas and 44 other states provided the researchers with feedback on their initial evaluation of state transparency websites. The leading states with the most comprehensive transparency websites are Indiana, Florida, Oregon, Florida, Texas, Massachusetts, Iowa, Vermont, and Wisconsin.
 
Based on an inventory of the content and ease-of-use of states' transparency websites, the “Following the Money 2014” report assigns each state a grade of “A” to “F.” Described in the report as an "Advancing state," Arkansas' checkbook is searchable by recipient, keyword and agency. Arkansas lost points, for instance, for not providing information about what recipients of economic development subsidies are expected to deliver and not disclosing what results they actually produce. Information is also not provided for some off-budget quasi -public agencies.
 
Arkansas’ score of 80 was a significant improvement from last year’s 69. Grading standards rise each year, so states need to improve transparency each year to be a leader.

While many states continue to improve, the states that most distinguished themselves as leaders in spending transparency are those that provide access to types of expenditures that otherwise receive little public scrutiny. For instance, six states provide public access to checkbook-level data on the subsidy recipients for each of the state’s most important economic development programs, allowing citizens and public officials to hold subsidy recipients accountable by listing the public benefits that specific companies were expected to provide and showing the benefits they actually delivered. The most transparent states similarly provide detailed information on subsidies spent through the tax code and “off-budget” quasi-public agencies.

“Rising public expectations about government transparency are clearly making progress,” said Greg LeRoy, executive director of Good Jobs First, an organization that tracks state and local subsidies. “US PIRG’s findings about overall state spending transparency are consistent with our own specific findings about economic development subsidies: there is more data and its quality is improving. Now our collective challenge is to use the data to win more accountability and equity.”
 
“Open information about the public purse is crucial for democratic and effective government,” said Baxandall. “It is not possible to ensure that government spending decisions are fair and efficient unless information is publicly accessible.”
 
At least eight states have launched brand new transparency websites since last year’s report, and most made improvements that are documented in the report.

States that have created or improved their online transparency have typically done so with little upfront cost. In fact, top-flight transparency websites can save money for taxpayers, while also restoring public confidence in government and preventing misspending and pay-to-play contracts. In Arkansas, officials have been able to download and review the state’s financial information to find places to lower costs. For example, Arkansas Teacher Retirement System analyzes travel spending to ensure state employees are carpooling together when possible to reduce the agency’s travel costs.
 
State spending transparency is a non-partisan issue. The report compared transparency scores with a variety of measures of which party rules the state legislative, or sits in the Governor’s office, or how public opinion tilts in the states. Neither Republican nor Democratic states tended to have higher levels of spending disclosure. 
 
Click here to visit the state’s transparency website operated by Arkansas Department of Finance and Administration.
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