LITTLE ROCK — Gov. Mike Beebe has set a Nov. 8 date for a special election to fund highway bonds to pay for extensive Interstate improvements.
Beebe on Monday signed a proclamation setting the date for voters to authorize the Arkansas Highway Commission to issue up to $575 million in GARVEE bonds for a new Interstate Rehabilitation Program. The bonds would be financed by future federal money and the state's existing 4 cent tax on diesel fuel.
Beebe, flanked by the chairmen of the state Democratic and Republican parties, emphasized to a crowd of legislators, highway officials and other supporters that the bonds use the existing tax, not a new one.
"The passage or failure of this program doesn't increase or decrease anybody's taxes," he said. "This is separate and apart from any tax change. If this is not passed by the voters, the taxes remain the same. If this is passed by the voters, the taxes remain the same."
The bond money would be supplemented by money from the highway department to fund a construction program totaling nearly $1 billion, according to a statement issued by Move Arkansas Forward, a group advocating the passage of the bond. About 300 miles of interstate would be reconstructed and more than 27,000 jobs would be created, according to the statement.
A 1999 Interstate Rehabilitation Program using GARVEE bonds financed by federal funds and the diesel tax money reconstructed more than 350 highway miles.
Arkansas House speaker Robert Moore, D-Arkansas City, called improving the highway system "critically important" to the state's growth, though he noted it is only the beginning of efforts to fully fund road projects across Arkansas. Moore said more money needs to be identified as the state grapples with rising maintenance costs and declining highway revenues.
"But until we get to that point, this is a huge measure to fill in the gap in funding," he said, noting the bonds would also free up money for some secondary road improvements.
Madison Murphy, chairman of the highway commission, said, if voters approve the measure, the bonds would have to be issued before 2016 and that the vast majority of the construction work would occur within the first five years of the program.
Read tomorrow's Arkansas Democrat-Gazette for full details.
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