Page 50 - ATR 1 2016 web

THE laST word

we’re gonna do what

they say can’t be done

by andy davis Transportation Department (AHTD) to now that general revenues will potential-
access two billion dollars in additional ly be spent on the state’s highways, the
After months of the Governor’s federal funds over the next ten years. time has come for legislative oversight
Highway Funding Work Group meetings, You’ll have to trust my math on that. of the funding process and execution of
Governor Asa Hutchinson announced This proposal sets two notable funded projects in this state.
his proposals for additional highway precedents in Arkansas highway fund- The state highway department isn’t
funding to a large crowd on Tuesday ing policy. The first is that thanks to the only entity that taxpayers should
January 19, 2016. the efforts of everyone involved, we expect the legislature to oversee when
Some of the ideas presented in will increase highway infrastructure expending highway money. Local gov-
the working group are included in the investments without raising taxes. The ernments currently receive over $200
Governors proposal. The plan includes second is the first sizable contribu- million annually for local streets, roads
transferring $4 million ($2.7 to the tion of general revenues (non-fuel tax and bridges. However, there is not
state, $1.3 to cities & counties) in exist- revenue) to the state’s highway system. an adequate accountability system in
ing diesel taxes from general revenue Regardless of whether you think it would place to verify those funds are used as
back to highways, $5.4 million in rev- be good timing, or good policy, to raise intended.
enue from the ½ cent sales tax approved fuel taxes, the fact is that any proposal The governor’s funding proposal is
by voters that is currently directed to the to raise taxes is not getting though this the right plan for today’s needs using
central services fund. That is the fund Republican-controlled legislature. today’s resources. In the future, addi-
that pays for elected official’s offices. The second precedent is even more tional resources could be available, and
Another $25 million in new and notable in my opinion. For the first even more general revenue could be on
used car sales tax money would be time, general purpose revenue will be the table for state and local road needs.
phased in over 5 years and $40 million used for highway expenses in addition to Now is the best time to address reforms
of one-time money from his current sur- user fee revenue sources like fuel taxes. in highway funding policies that do
plus funds in FY16. In future years, he Along with this shift in policy should not include new dollars, but should be
is asking the legislature to dedicate 25% come additional policy changes aimed at addressed before the legislature agrees to
of surplus revenue, or general improve- verifying the best possible use of these additional spending.
ment funds, to highways each year. The general funds in addition to the other New highway funding including
amount of this surplus provided to high- hundreds of millions collected and spent smart general revenue transfer, putting
ways would be variable year to year, but on highways each year. The Arkansas highway money into highways, and get-
over the last ten years 25% of surplus Constitution provides that the Highway ting more for our existing dollars, with-
would have averaged $48 million per Commission is the chief executive over out raising taxes. We’re gonna do what
year. Using that figure, accounting for the highway department, but it does not they say can’t be done. ATR
the 5 year phase in, considering that the isolate the commission or the depart-
$5.4 million expires in 2023, and some ment from legislative oversight. Since Andy Davis is a Republican member of
the Arkansas House of Representatives.
political license, the Governor’s proposal one of the primary roles of the legislative He also served on the governor’s
would generate about $75 million per branch is to keep a watchful eye on the Highway Funding Working group.
year, and allow the Arkansas Highway & budget, shouldn’t it do that? Certainly

opinions expressed on this page may not reflect official policies or opinions of the
Arkansas Trucking Association or the American Trucking Associations.

50 arkansas trucking rePort | issue 1 2016