Arkansas Attorney General Dustin McDaniel on Monday said he'll reimburse the state $2,903 for personal use of his state vehicle and apologized to Lt. Gov. Bill Halter for criticism he leveled at Halter for reporting the use of his state car as personal income.
McDaniel, who last week said he would give up his state-issued hybrid SUV, said he would pay back the state based on a law requiring employees to reimburse the state 15 cents a mile for any personal mileage on a state vehicle. The law, however, specifically exempts constitutional officers.
"Nonetheless, I think it's the best way for me legally and ethically to resolve the issues going forward," McDaniel said, according to prepared remarks for a speech he delivered Monday morning in Eureka Springs. McDaniel's office said he planned to deliver the same speech in Springdale Monday night.
McDaniel said he determined that about 20 percent of the 96,773 miles he logged on state vehicles since taking office in 2007 were for personal use.
McDaniel gave up his state SUV after the Arkansas Democrat-Gazette reported last week that Halter was the only constitutional officer who pays income tax for the personal use of his state-issued vehicle. In the newspaper article, state and federal tax officials pointed to regulations that say the personal use of a state or business vehicle should be reported as taxable income.
Gov. Mike Beebe does not have a state vehicle assigned to him and rides with the Arkansas State Police for state business. When he was attorney general, Beebe also paid income tax for the personal use of his state vehicle.
McDaniel had criticized Halter, saying he believed the lieutenant governor only paid the taxes for political reasons. Halter last week had called the comments disturbing.
"I said some things that weren't just less than thoughtful. They were just dumb," McDaniel said. "I sincerely apologize for any offense I may have caused."
McDaniel, however, said he still believes the state Constitution prohibits constitutional officers from accepting personal mileage as additional income.
Garry Hoffmann, a spokesman for Halter, said the lieutenant governor appreciated McDaniel's comments and accepted his apology.
McDaniel and Halter are both Democrats who have been viewed as potential candidates for governor in 2014. Halter unsuccessfully challenged Sen. Blanche Lincoln for the Democratic Senate nomination this year. McDaniel backed Lincoln in that contest.
