Guest writer

One clear winner

Issue 1 will improve state’s roads

— During my time as a highway commissioner, it became very apparent that Arkansas’ system of funding highways is, by modern standards, inadequate. To put it simply, our ever-growing highway needs are outstripping our ability to fund those needs, improve economic development and create and sustain jobs.

It’s important to remember that Arkansas has the 12th-largest state highway system in the country, but ranks 43rd in our ability to fund it. Our primary source of revenue is a per-gallon fuel tax, a revenue which is flat and going down due to better gas mileage for cars and trucks, more hybrids and electrics, and truck fleets converting to natural gas. Fuel conservation is happening for all the right reasons, but this type of progress doesn’t help fund our highway construction and maintenance requirements.

Arkansas must continue to find innovative ways to maintain its existing highways and fund and build the future highways we need, particularly when it comes to financing a four-lane highway network. One of those innovative ways is to seek consistent streams of revenue to finance bond issues that will build better roads now, rather than the added cost and lengthy time associated with “pay-as-you-go” funding.

That’s why I introduced and helped pass in the Legislature a proposed constitutional amendment which will be on the November 6 general-election ballot. For these same reasons, I oppose the Severance Tax Initiated Act that is attempting to make the ballot through a petition drive. Let me point out the differences.

The proposed amendment will be on the November ballot as Issue 1. If passed, the amendment will authorize a $1.3 billion bond issue dedicated to the construction and improvement of a four-lane highway network designed to connect all parts of the state. The amendment will also provide nearly $700 million over the next 10 years to be shared by every city and county in Arkansas to help repair county roads and fix city streets.

Because this is a constitutional amendment, and because it provides for a consistent stream of revenue to the state, cities and counties from a temporary half-percent sales tax for the next 10 years, the state Highway and Transportation Department will be able to issue bonds for four-lane work now, and will be able to ensure that cities and counties receive a consistent flow of revenue they can use to plan much-needed local construction and maintenance programs. The severance-tax issue can do none of those things.

While the natural gas industry in Arkansas is responsible for over 16,000 new jobs in the Fayetteville Shale area this year alone, severance taxes produced by the industry are not a wise source of funds for highway construction and maintenance. The price of natural gas fluctuates on a daily basis, so the severance tax cannot be counted on for consistent revenue to plan highway programs, nor can the stream of revenue be bonded to build roads now. It is simply unreliable.

Plus, if the proposed severance tax issue were to make it to the ballot and pass, it would severely affect the Arkansas economy by eliminating an estimated 8,000 jobs and $2.7 billion in total spending in our state. Issue 1, however, would support over 40,000 jobs statewide through construction,maintenance and related work programs.

Issue 1 also would provide for local revenue to every city and county through turn back funds. In Washington and Benton counties alone, the turn back revenue over the next 10 years would amount to more than $86 million, all without raising taxes on groceries, medicine or gasoline.

Arkansas needs to be competitive with our surrounding states. Raising the severance tax to a flat 7 percent would put Arkansas at a competitive disadvantage with Texas, Oklahoma and Louisiana. Issue 1 would allow Arkansas to become more competitive with surrounding states by improving four-lane highways, which will support state and local economic development efforts, making Arkansas more desirable for companies to locate, expand and do business here. Plus, Issue 1 will allow the Highway Commission to direct more existing funds to secondary roads throughout the state, benefiting all Arkansans where they live and where they drive.

Issue 1 is already on the general election ballot. The increase in the state’s severance tax is not. If asked to sign a petition to put the harmful severance tax on the ballot, just say, “No thanks.”

We already have the issue on the ballot that will do Arkansas the most good. That’s Issue 1. It’s the clear winner, and it deserves your support.

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State Rep. Jonathan Barnett, R-Siloam Springs, is currently serving his second term in the House of Representatives, and is a former Arkansas highway commissioner, appointed by former Gov. Mike Huckabee.

Editorial, Pages 13 on 07/02/2012

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