LITTLE ROCK — Speaker of the House Robert S. Moore, Jr., on Friday filed House Bill 1902 which, if approved by Arkansas voters, would provide the state with significant funding needed to maintain and improve Interstates and other National Highway System routes in Arkansas.
The bill would embody one part of a two-part plan to generate $2.9 billion for Arkansas Interstates and national highways, as well as county roads and city streets. The measure would add a five-cent diesel tax (recommended by the Arkansas Trucking Association) to the existing GARVEE bond issue, to be approved by Arkansas voters. This would leverage the bond program from $575 million to $1.1 billion for maintenance and improvement of Arkansas Interstates and national highways in the state. The five-cent tax would sunset upon retirement of the bonds. Cities and counties would each receive $4.25 million annually over the life of the bond issue.
"I am confident this plan will generate the significant funding we need to ensure we are able to safely maintain our roads for the next decade," said Speaker Moore. "I was pleased to bring the Arkansas Highway Commission and the Arkansas Trucking Association together, as major stakeholders, in devising a proposal that everyone can get behind. There was a lot of hard work and cooperation, along with some compromise, but we believe putting this plan before the people of Arkansas is the right thing to do for the future of our state."
The funding proposal package also includes HJR 1001, by Rep. Jonathan Barnett. It would refer a constitutional amendment to the November 2012 ballot, levying a temporaryhalf-cent sales tax to finance a 10-year bond issue. This would generate $1.8 billion for a five-year construction and improvement plan for fourlane highways connecting all parts of the state. The tax would expire when the bonds are retired and cities and counties would each receive $34.7million annually over the life of the bond issue. The amendment would also create a permanent State Aid Street Fund of approximately $20 million annually from one-cent of the existing per-gallon motor fuel tax. This does not require a new tax, but would make new revenue available for city streets. The State Aid Street Fund complements the existing one-cent county aid fund.
The plan has been endorsed by numerous statewide associations.
HIGHWAY FUNDING PROPOSAL FACT SHEET
HB 1902 - GARVEE "Plus" for Maintenance and Improvement of Interstates and National Highway System Routes in Arkansas:
◊Would enhance the existing GARVEE bond authorization with an additional five-cent diesel tax. (Four cents of existing diesel tax is dedicated to current GARVEE bonds.)
◊This would increase funding from $575 million to $1.1 billion to be used for maintenance and improvement of Interstates and other National Highway System routes in Arkansas.
◊Five-cent diesel tax would sunset upon retirement of bonds.
◊To be referred to the people of Arkansas for approval.
◊Cities and counties would each receive $4.25 million annually over the life of the bond issue.
HJR 1001 - Constitutional Amendment for Four-LaneHighways, County Roads and City Streets:◊Constitutional Amendment referred to the people and voted on at the November 2012 General Election.
◊Temporary half-cent general sales tax to finance a 10-year bond issue, to expire when bonds are retired.
◊Bonds will finance $1.8 billion, funding a five-year construction and improvement plan for four-lane highways connecting all parts of the state.
◊Recent figures from the Federal Highway Administration indicate for every $1 billion of highway capital investment, 27,800 jobs can be supported or maintained.
◊Cities and counties would each receive $34.7 million annually over the life of the bondissue.
◊Permanent State Aid Street Fund of approximately $20 million annually from one cent of existing per-gallon motor fuel tax; not a new tax (similar to current county aid program).
News, Pages 16 on 03/09/2011