By Steve Brawner, © 2018 by Steve Brawner Communications, Inc.
In two years, you’ll probably be asked to vote for higher taxes for Arkansas’ highways, for three reasons.
One reason is that highways are clearly underfunded. The Arkansas Department of Transportation has identified $9.3 billion in needs but only $4.5 billion in expected revenues over the next 10 years – numbers confirmed by a legislative audit. That extra $4.8 billion would maintain and improve the nation’s 12th largest highway system, but it would not fund the long-desired I-49 in western Arkansas and I-69 in south Arkansas.
Why the big shortfall? Highways are funded primarily through fuel taxes, which haven’t changed at the federal level since 1993 and in Arkansas since 1999. Neither were indexed to inflation, so as construction costs have risen, revenues have not. Meanwhile, vehicles have become more fuel efficient. Some – maybe someday many – don’t use fuel at all.
This has been the reality for a long time. Scott Bennett, ARDOT’s director, told me he’s made basically the same speech for 15 years.
What’s changed are the second and third reasons you’ll be asked to vote for higher taxes for highways. Continue reading Higher taxes for highways?