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Legislator says highway bond measure being readied for 2008 vote Tuesday, Jan 23, 2007 By Doug Thompson Arkansas News Bureau LITTLE ROCK - A new highway bond program proposed for the 2008 general election ballot would restrict highway officials' ability to keep extending state debt, a state senator told a legislative committee Monday. Sen. Bobby Glover, D-Carlisle, said he was part of a group crafting legislation that would largely mirror a failed 2005 proposal to renew a $575 million highway bond program that voters first approved in a 1999 special election. The major differences, Glover said, would be to refer the proposal to the next general election and to require public approval for issuing new bonds. The senator blamed the defeat of a 2005 bond program on two factors: It was decided in a December special election and would have given the state Highway Commission unfettered authority to issue new bonds as the old ones were paid off. "We're working on a bond issue ballot measure now, and I'll be a co-sponsor of it, to place it on the next general election ballot," Glover told the Senate Transportation, Technology and Legislative Affairs Committee. "To pass, there would have to be a new type of proposal with a cap or a sunset provision on it that would periodically come back to the voters to be renewed," state Highway Director Dan Flowers told the committee. Flowers spoke during a presentation on Arkansas' future highway needs. He said highway officials expect to receive $4 billion in funding over the next decade to address about $19 billion in road needs. Two years ago, highway officials made a run at tapping state revenues to pay for highway improvements, but a bill to divert tax proceeds from the sale of vehicles, batteries and other user fees fizzled in the 2005 General Assembly. Later in the year, voters soundly defeated the ballot issue to renew the 1999 bond issue that financed nearly $1 billion in improvements on more than 300 miles of interstate highways in Arkansas. The proposed new bond program would be financed by money from future payments to the state from federal highway bills, much like the 1999 bond program. Currently, the Highway Commission's main source of revenue is a fuel tax, which Flowers said has grown about 1 percent annually compared to the 4 percent to 5 percent growth in state revenues. Also, highway construction costs are rising, he said. Asked what state tax he would prefer to tap, Flowers said the commission believes "road users should pay for roads" and offered several suggestions, including existing sales tax collections on new and used cars. However, the commission expects lawmakers to take the lead on the issue, the highway director said, declining to give a figure on how much tax revenue the highway department would need. "If I gave you a number, it would be a big one you probably wouldn't want to hear," he said. Sens. Jerry Taylor, D-Pine Bluff, and Kim Hendren, R-Gravette, both said that the Legislature should consider taking the money from Gov. Mike Beebe's proposed cut of sales taxes on groceries and transferring that money to highways instead. Beebe has proposed cutting the 6 percent sales tax on groceries by 3 percent this session, which officials say would lop about $90 million annually from state general revenue. The governor has said he is opposed to using general revenue for road-building. |
