Page 20 - ATR 6 2018 web

beyond ARDOT’s current $4.8 billion raising taxes. But few legislators would brought for the revenue that comes,
shortfall, which simply would cover vote to do that. However, they probably then (legislators) certainly ought to at
maintenance, widenings and improve- would give Arkansans a chance to raise least have some ability to monitor how
ments. But Hutchinson told the Good their own taxes, as they did in 2012. those dollars are being spent,” he said.
Roads Foundation that voters will need Sen. Jim Hendren (R-Sulphur Bill Vickery, a political consultant
to see more. Springs) the incoming Senate president with Capitol Advisors Group, which
“The public … they know the need pro tempore, said legislators know works with ATA, senses that the gover-
for a maintenance plan, but you’ve highways are a good investment for the nor and lawmakers want to accomplish
got to have new investment and new state, and said there is “overwhelming big things. He said this year feels like a
roads,” he said. consensus” about the need for football team that’s been together for a
improvements. while and has a positive vibe entering
EVERYTHING IS ON THE TABLE the season. A two-term governor has
Shannon Newton, Arkansas four legislative sessions, and the first
Trucking Association president, is glad occurs soon after governors are elected
highway funding is so high on the “IF EVER THERE WAS and must immediately submit a budget.
governor’s agenda. While other truck- Two years from now, Hutchinson will
ing-related issues will be debated, she A PORRIDGE NOT be preparing for his last session, and
expects highways to consume the bulk TOO COLD, PORRIDGE lawmakers will be posturing for the
of ATA’s time and energy. NOT TOO HOT, JUST upcoming statewide 2022 elections.
“The fact that everything is on the RIGHT, IT MAY BE THE “If ever there was a porridge not
table, I’m still calling a positive,” she too cold, porridge not too hot, just
said. “The one thing that does seem NEXT SEVEN MONTHS right, it may be the next seven months
to have a lot of support and not a lot OF ARKANSAS STATE of Arkansas state government,” he said.
of detractors is the half-cent sales tax. GOVERNMENT.” But will that environment enable
I haven’t heard anyone bring viable lawmakers to come to a consensus on
concerns about that going forward and a highway program? To reach $400
making that half cent a dedicated rev- —BILL VICKERY, A POLITICAL million, multiple revenue streams will
enue source.” CONSULTANT WITH CAPITOL be needed. Voters could be asked to
Extending the half-cent sales tax ADVISORS GROUP support increasing the gas tax, increas-
gets Arkansas almost halfway to $400 ing the sales tax, or increasing vehicle
million, so other funding mechanisms registration fees. Some measure might
will be needed. As it has in the past, be needed to ensure drivers of electric
ATA supports a diesel tax increase: a 5 and hybrid vehicles are paying their fair
cent increase with no strings attached, “The hard part is, how do we pay share as well.
or 10 cents if the extra money were for it?” he said. “Do we divert dollars The governor opposes using existing
dedicated to the freight corridors. that are currently going somewhere taxes from sales of road user items such
But even a 10-cent diesel tax else? Or do we find a new revenue as cars and car parts. He told the Good
increase, added to the half-cent sales stream, which means new taxes? Or do Roads Foundation that a $400 million
tax, would not be enough to reach $400 we cut spending somewhere else and transfer would divert 7 percent of the
million. Newton said raising $200 mil- take those dollars? That’s where it gets current budget to highways. He said
lion would require doubling the diesel complicated, and I think the consensus when he proposed a 1 percent across-
tax, and that’s too much for any one is a little bit further away on that part the-board state budget cut when he was
industry to bear. of the question.” first elected governor, the Legislature
Moreover, ATA won’t support Hendren said any highway proposal reversed parts of it. In 2016, he sup-
a highway plan that doesn't meet probably must include reforms ensur- ported using $50 million in general
the need. If that’s what’s proposed, ing more efficiency and accountability, revenues to make the state eligible for
“Arkansas Trucking Association’s out. such as changing the state’s bonding $200 million in federal funding. But
The numbers have got to be big. … The process to reduce interest rates, possibly that’s probably it.
lift is not light. Even at $250 million, addressing the traditional funding allo- “I don’t see how that would work,”
it’s not light. We're not willing to cation of 15 percent for cities and 15 he told reporters Nov. 13. “In fact,
do the lift if we’re not solving the percent for counties, and the need for I’ve said very clearly we should not be
problem.” legislators to have more oversight over dipping into general revenues to fund
The Legislature could pass a high- the independent Highway Commission. highways.”
way program on its own, including “If there’s going to be political heat 

20 Issue 6 2018 | ARKANSAS TRUCKING REPORT