LITTLE ROCK—Arkansas’ incoming House speaker on Wednesday said Gov. Mike Beebe’s budget proposal for the upcoming year will be lean because of the uncertain economy, but includes a proposal for an additional cut in the state’s sales tax on groceries.

Incoming House Speaker Robbie Wills and other House leaders got a preview of Beebe’s budget proposal the day before his office is scheduled to release it to a legislative hearing on Thursday.

“It’s fairly conservative in forecast and spending,” Wills said after meeting with Beebe and state financial officials Wednesday. Wills, D-Conway, declined to go into detail on the tax cut proposal, but called it a “good starting point” for discussions on tax relief during next year’s session.

Beebe’s offered few clues on his budget, other than saying it will be frugal and that his top priority for any tax relief is continuing to reduce the state sales tax on groceries. Beebe signed into law last year a bill cutting the sales tax in half from 6 cents to 3 cents, a $121 million reduction.

Lawmakers had expected some sort of reduction in the tax, possibly by at least a penny, but many said a complete elimination is unlikely given the economy.

“I think he wants to at least try to do something, but I think everyone understands that with the times that we’re in that we still need to meet our essential services as well,” said Sen. Shane Broadway, D-Bryant.

Wills said that other tax proposals being floated in the Capitol include a potential reduction in a cut in the sales tax manufacturers pay on energy costs.

Beebe has already warned publicly that the budget will reflect concerns that the nation’s financial crisis will hit Arkansas’ revenues. Citing that fear, state finance officials in April cut $107 million from state agencies’ budgets for the current fiscal year. The cuts included about $32 million lopped away from spending for the state’s two- and four-year colleges and universities.

One idea that Beebe has already floated but he says won’t be detailed at Thursday’s hearing is setting aside part of the state’s projected surplus of at least $260 million as a “rainy day fund” that the state can tap in case of economic downturns. Beebe said the surplus, or General Improvement Fund, money used for that reserve could later end up going toward one-time projects if possible.

Beebe remained tight-lipped Wednesday about his budget plans and whether they include a continuation of his grocery tax push. A veteran of the state Senate, Beebe said the budget will be tight but said it doesn’t rank as the most difficult compared to ones he saw as a legislator.