Guest writer

That's our job

Highways are business we’re in

Marketing 101 asks the question, "What business are you in?" Many if not most corporate and government leaders respond with what they do, instead of the results or benefits from what they do.

You no doubt have heard the timeworn example of the company that made buggy whips. When the automobile came along, the buggy-whip maker went out of business because he thought he made buggy whips, when what he actually made was starting mechanisms. Transform the whip into the ignition and you get the idea.

All too often highway contractors and the Arkansas Highway and Transportation Department believe they are in the road-building and maintenance business. When what they actually do is create and sustain jobs: they're in the job-building business.

And Arkansans believe that to be true. In fact, in a recent statewide poll conducted by the Arkansas Good Roads Foundation, likely voters were asked, "How important are Arkansas' highways to economic development and job growth?" The great majority, 79 percent, said "Very important," while 19 percent said "Somewhat important." The rest, not so much. What's more, the jobs generated by our highway department and the contractors they hire are private-sector jobs. Highway construction and maintenance doesn't grow government, it targets government spending more effectively by creating and sustaining private-sector jobs, increasing economic activity and enhancing competitive economic development.

Congress has now passed, and the president has signed, a five-year, $305 billion federal highway bill. The bill, which includes the longest period of time for a continuous federal highway program in 17 years, will ensure federal aid for Arkansas' highways, roads, streets and bridges. But only if we can come up with an increase in state funding to meet the 20 percent state match to receive the much-needed federal funds.

Right now, because of declining revenue going to the Arkansas highway department, and revenue created by road users being diverted to other state funds, we don't have the cash to match the federal aid. If we can't match it, we don't get it. Without action, and action soon, other states will get Arkansas' portion of the new federal dollars.

Arkansans want action. The same Good Roads Foundation poll discovered that 56 percent of Arkansas voters believe roads and bridges are an essential government service. And 68 percent said they would be more likely to re-elect their state legislator if he or she voted to increase highway funding. Of course, support for specific funding options varies.

What is clear from the survey is that Arkansas voters believe by 74 percent that some part of current general revenue should be dedicated to highways. To be more specific, 63 percent agree that the portion of general revenue generated by the existing sales tax on new and used vehicles should go to the highway fund rather than being diverted to general revenue, as it is now.

But transferring existing road-user revenue to the highway fund will take time. Arkansas needs additional highway revenue now to match federal aid, and to restore the previously canceled annual overlay paving program. The overlay program is a strategic use of highway funds which extends the life of existing roadways while helping prevent the serial appearance of potholes, particularly after heavy rains, snow and ice. Additional highway revenue will restore that maintenance program while also giving us the means to match federal aid for new construction. With federal money used for construction, the highway department can direct existing funds for increased maintenance on the roads and bridges we have, making them smoother, safer, sooner.

December 15 is the deadline for the Governor's Working Group on Highway Funding to provide Gov. Asa Hutchinson with funding options--both short-term fixes and long-term solutions. The focus for now is on the short term, because the needs are immediate.

With the advent of the new federal highway program, those needs are not only immediate, they are urgent.

If Governor Hutchinson and the Legislature want to move Arkansas forward by creating more private-sector jobs, increasing economic activity and enhancing competitive economic development, investing state resources in highways is a proven way to achieve success. And that's the business we're in.

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Craig Douglass is a Little Rock-based marketing communications consultant, and serves as executive director of the Arkansas Good Roads Foundation.

Editorial on 12/12/2015

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