AAC
RESEARCH CORNER
Informed, educated citizens will support local road and bridge funding needs
G
overnor Asa Hutchinson entered office in 2015 and inherited a longstanding major shortfall in funding for state and local roads and bridges. On April 23, 2015, the Governor issued Executive Order (EO) 15-08. The Governor determined that an efficient transportation system is critical for Arkansas’ economy. He referenced several independent studies that have determined the state and local highways, roads, streets and bridges in Arkansas are in dire need of construction, reconstruction and maintenance. The Governor determined the revenues currently available are inadequate for the preservation and maintenance of the existing infrastructure and for enhancements to reduce congestion. The current structure of the motor fuels tax is inadequate due to reductions in revenues due to fuel efficiency and use of alternative fuels. In essence, road and bridge funding in Arkansas has not kept up with the road and bridge funding needs. This plight is not unique to Arkansas. Many states have addressed the situation and raised taxes. More than half the states, 27 states, have passed an increase in the motor fuels tax in the past five years. Their leaders and constituents accept that keeping pace with road and bridge construction needs requires increases in revenues. They acted to reverse the losses in gas tax purchasing power caused by rising construction costs. They abandoned stagnant fixed rate taxes, such as per-gallon taxes, and adopted smarter tax structures. Our leaders and informed constituents likewise accept these fundamental realities. Our leaders and constituents need to formulate and adopt sound measures to address the revenue needs. The Governor appointed the 20-member Working Group on Highway Funding (Working Group) to actively involve the public to determine adequate funding for the “present and future needs of the state highways, county roads and city streets.” The group provided the Governor recommendations to create a more reliable, modern and effective system of funding on Dec. 15, 2015. However, recent efforts to adopt state and local road and bridge funding have failed. Efforts for legislation during the third extraordinary session of 2016 and during the regular session of 2017 were unsuccessful. Rep. Dan Douglas filed legislation known as House Bill (HB) 1726, to authorize a vote of the people on a bond issue. The measure died in the House of Representatives with 38 voting For, 35 voting Against, 20 non-voting, and 7 voting present. The companion bill, HB 1727, to levy taxes on motor fuels passed the House Transportation Committee but did not get a vote in the House of Representatives, due in part to failure of HB 1726. 12
The Transportation Investment Advocacy Center recently reported that 96 percent of lawmakers across the country that voted in favor of gas tax increases faced re-election and will advance to the Mark Whitmore November general election. The AAC Chief Counsel numbers reflect that of those 558 lawmakers that voted for a gas tax increase and ran for election, 295 Republican lawmakers (96 percent) and 263 Democratic legislators (97 percent) will advance to the general elections in November. The myth that voting for an increase for road revenues will meet disapproval by the electorate is just that — an unfounded myth.
The Traditional 70-15-15 split
The County Judges’ Association of Arkansas (CJAA) supports measures to increase funding. The CJAA adopted a resolution in support of the Working Group’s recommendations, provided the proposed measures adopt the traditional 70-15-15 split of revenues between the state (70 percent), cities (15 percent) and counties (15 percent). The road and bridge system in the state of Arkansas is interconnected, and it is imperative that the state, cities and counties have adequate funding and properly maintain their respective roadways. The traditional 70-15-15 split of revenues among the state, cities and counties has proven effective. The traditional split commenced in 1965. It has continued to date. In 2012, the voters further expressed their approval of the 70-15-15 split for the allocation of funds under Amendment 95 of the Arkansas Constitution. The traditional 70-15-15 split has a proven track record of support by the citizens. The CJAA has engaged an expert to demonstrate the needs for maintaining and reconstruction of our county roads and bridges statewide. Also, 11 counties have taken additional steps and assessed the condition of paved roads: Benton, Clark, Faulkner, Franklin, Greene, Little River, Lonoke, Pulaski, Saline, Sebastian and Washington. These counties have established a pavement assessment program and pavement preservation program. The information below demonstrates the needs of counties statewide.
Education of the Citizens
Historically, informed citizens support state and local road and bridge revenue programs, provided they are educated as to the dire needs the Governor and independent studies reference. COUNTY LINES, SUMMER 2018
