Key dates surrounding lawmakers’ General Improvement Fund grants

2006

Dec. 14 — Arkansas Supreme Court rules that a legislator’s $400,000 appropriation to the town of Bigelow for street and sewer improvements is unconstitutional local legislation. That opinion, in a lawsuit by former state Rep. Mike Wilson of Jacksonville, and subsequent rulings stop lawmakers from directly awarding grants from the state surplus General Improvement Fund (GIF).

2011

July — Legislators start channeling portions of their individual shares of GIF money through eight economic development offices, also called planning and development districts. Grant awards that require district board approval are viewed by some legislators as not coming directly from them. That year, the districts get $3.09 million total to distribute.

2013

July — Record year for GIF grant money — $36.3 million. By 2015, GIF money to districts declines to $12.2 million.

Sept. 10 — Arkansas Health and Economic Research Inc. of Benton, a new nonprofit focusing on alternative health practices, applies for its first GIF grant through the Northwest Arkansas Economic Development District in Harrison. Authorizing legislator is then-Sen. Jon Woods, R-Springdale. One of the nonprofit’s officers is a Woods’ friend, Randell Shelton Jr.

Sept. 25 — Arkansas Health and Economic Research gets $20,000 grant from Northwest Arkansas district.

Dec. 16 — Northwest Arkansas district approves second grant of $10,000 to Arkansas Health and Economic Research, supported by Rep. Micah Neal, R-Springdale. Three more grants follow over two years. Total is $41,698.

2017

Jan. 4 — Neal, no longer a legislator, pleads guilty to one count of fraud in connection with GIF grants to two nonprofits identified in grant records as Ecclesia College of Springdale and Decision Point Inc., an addiction treatment center in Bentonville, and related entities. His plea agreement implicates a state senator and others. Federal authorities allege a kickback scheme.

March 1 — Federal grand jury indicts Woods, Ecclesia College President Oren Paris III and Ecclesia consultant and Arkansas Health and Economic Research officer Shelton in connection with grants surrounding Ecclesia and Decision Point. They plead innocent and await trial.

June 16 — A vote by the Arkansas Bar Association narrowly fails to back a constitutional amendment that would have, among other things, prohibited legislators from spending GIF money for what critics call “pet projects.” Little Rock lawyer Scott Trotter, who helped draft the amendment, continues efforts to put it before Arkansas voters.

July— For first time in six years legislators don’t authorize GIF grant money to regional district offices.

Sept. 7 — Arkansas Supreme Court hears oral arguments in new lawsuit filed by former lawmaker Wilson that asks that individual legislators’ grants through economic development districts be declared unconstitutional. High court is deliberating.

Sources: GIF records, Arkansas Department of Finance and Administration, Arkansas Supreme Court records, interviews.