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Highway program not high on Beebe's agenda Friday, Dec 29, 2006 By Rob Moritz Arkansas News Bureau LITTLE ROCK - Gov.-elect Mike Beebe cast doubt on prospects for a highway construction program during the 2007 legislative session. Beebe also said the more than $250 million needed for public school renovations next year should come for the state's bulging budget surplus and that his plan to phase out the state sales tax on groceries is not negotiable. Beebe, who takes office Jan. 9, discussed his priorities for the upcoming regular session in a wide-ranging interview Wednesday with Roby Brock, a freelance journalist who writes for the Arkansas News Bureau. The governor-to-be said it was premature to know whether a major road program would be introduced during the legislative session that convenes Jan. 8. He said he may not even mention the subject in his state-of-the-state address to a joint session of the House and Senate two days later. Dan Flowers, director of the state Highway and Transportation Department, said recently that the state has about $19 billion in highway needs over the next 10 years and $4 billion in anticipated revenue from fuel taxes. The Arkansas Highway Commission recently approved a measure that asks the Legislature in 2007 to dedicate sales taxes paid on road-user related items to state highways, county roads and city streets. Also, the Arkansas Good Roads Transportation Council recently announced a statewide highway needs awareness campaign in advance of the legislative session. To help fund road improvements, the Good Roads group said it would seek re-introduction of a highway bond program and seek new revenue sources during the legislative session. Two years ago, the group's new director, outgoing state Rep. Johnnie Bolin, D-Crossett, sponsored legislation to divert state sales taxes from the sale of new vehicles to fund a $1 billion highway bond program. The legislation failed to gain widespread support and was abandoned. Beebe said he understands the need for a new highway construction program and that the department's current funding source has been "flat" over the past few years. However, he said he has yet to see a new funding source that would be acceptable to him. Highway Commission Chairman Jonathan Barnett of Siloam Springs said Thursday he was not surprised that a highway program is low on Beebe's to-do list when he becomes governor. "We understand he's got a lot on his plate and he's got a lot to process," Barnett said. Still, he said the commission would push the idea of using general revenue to pay for road construction during the session "Hopefully, when it's all said and done, there will be something there for us," Barnett said. Highway advocates also have raised the prospect of using up to $200 million from the state's budget surplus to help fund highway construction, but Beebe said he wanted the bulk of the surplus - projected to be $843 million by the middle of next year - used for an ongoing overhaul of public school facilities. "The best expenditure of one-time capital money is on one-time capital projects," he said, adding that the initial projected cost for improvements to school buildings around the state was $265.7 million. "School facility needs is going to be a major draw on the surplus," he said. The Commission on Public School Academic Facilities and Transportation in June authorized $265.7 million for new school buildings. The school facility partnership program is to be implemented over three years and pays for more than 1,100 school construction projects that total about $600 million. The state Supreme Court ruled in December 2005 that the Legislature "grossly underfunded" school facilities following a 2004 study that identified $2 billion in construction and improvement needs. The 2005 Legislature appropriated $135 million for three programs: Immediate repair, transition and partnership. During Wednesday's interview, Beebe also reiterated his commitment to pushing a plan to phase out the 6 percent sales tax on groceries but said the proposal would be a tough sell. Incoming House Speaker Benny Petrus, D-Stuttgart, has said he would support income tax breaks for low-income wage earners over eliminating the sales tax, but Beebe said he felt strongly about ending the food tax. "While there are other ideas and other forms of tax relief that people are talking about, in my opinion the reduction and ultimate elimination of the grocery tax is non-negotiable," he said. He said he respected Petrus' views but still hoped to win over the new House speaker. Petrus said the Legislature should get the opportunity to debate the merits of the two approaches to tax relief. "We both want the same thing," he said. "That's what the committee system is for, to see which proposal catches legs. "It's sure not going to be the end of the world if I don't prevail. Maybe a compromise on both can be reached." |
