Nevada County Picayune and Gurdon Times Newspaper Archive

Highway Bond Issue Vital

A special election has been set for June 15 to approve a bond issue so Arkansas' interstates and highways can be improved.

Arkansas Gov. Mike Huckabee was in the area Tuesday, June 1, to push this project.

Huckabee pointed out this is a bond issue and not a tax issue. No new taxes will be created should this measure be approved by the voters.

Overall, $575 million will be raised to create a $785 million construction program utilizing money state residents are currently required to pay in the form of federal fuel taxes.

Last year the U.S. Congress passed a new highway bill allowing states to utilize an innovative funding concept known as GARVEE bonds.

Transportation Secretary Rodney Slater urges Arkansans to take advantage of this measure, so the state can pledge future federal funds to fix the roads now instead of later.

Should the bond pass, the repairs could be completed in about five years. Otherwise, by doing it the way the state must currently work construction projects, it will take 15 to 20 years to complete and the roads will almost constantly be under repair.

The bond, Huckabee said, will allow the state to repair more than 300 miles of interstate, and could see work started as soon as this fall. At this time, Arkansas' interstate system is rated as one of the worst in the nation.

Currently, he said, 50 percent of Arkansas' highways are in poor condition and the state can't keep up with the rate of deterioration with its repair projects.

"Bond rates are lower right now, with rates at near 8 percent," he said. "This makes it a good time for bonds."

Should the bond pass, he said, the Arkansas Highway Commission plans to let contracts during the next two years, with all work to be finished within five years.

The bond market has never been more favorable for such an issue as it is now.

The only monies to be committed to the bond issue is the $58 million a year already allocated by the federal government to the interstate maintenance fund and the four-cent diesel fuel tax increase to be paid by the trucking industry, along with state matching funds Arkansas is already required to use for matching federal turnback funds.

The interstate maintenance fund money can only be used for working on interstate highways.

Under Huckabee's plan, the state could dedicate money from the three-cent gasoline tax increase to work on rural highways in the state.

Cities and counties will receive 15 percent each of the diesel and gasoline tax increases. This will amount to about $10 million a year.

Huckabee said the longer the state waits, the harder and more expensive it will be to make the needed repairs.

Bad roads are dangerous, slow commerce and increase user costs, he added.

In addition, he said, the cost of the bond issue will be more than offset by economic gains made from the use of roads and the savings on the inflation on a pay-as-you-go method of financing.

Arkansas' interstate highway system accounts for only 3 percent of the state's overall highway system, but carries about 27 percent of the traffic. Interstates are the gateway to Arkansas and the key part of the transportation infrastructure.

Repairing these roads, he said is vital to the continued economic development and increased tourism.

Making use of bonds, instead of the pay-as-you-go method, will have the interstates under construction for less time, so residents will be able to make use of the roads sooner.

One of the best parts, Huckabee said, is the bonded indebtedness won't outlive the improvements made. The bonds will be completely paid off before these roads need repairing again.

The election, again, is scheduled for Tuesday, June 15.