The Arkansas Trucking Association today commended Arkansas Gov. Asa Hutchinson and other legislative leaders for introducing a long-term, sustainable infrastructure plan to fund roads and bridges across the state.
Under the proposal, $300 million in new highway spending is predicted to generate hundreds of millions in economic activity and thousands of new jobs.
The highway plan would allow the cities, counties and the Arkansas Department of Transportation to invest in infrastructure that will connect communities and businesses. Ninety percent of Arkansans recognize the need for repair and believe improving the state’s infrastructure is key to driving economic activity.
ATA President Shannon Newton noted the commitment of the Governor and legislators in formulating the proposal. “For too many years and legislative sessions, we’ve seen the can kicked down the road. ATA members are pleased to see decisive action on the part of the General Assembly and the Executive Branch in bringing long-term confidence to funding the highways where we do business.”
The funding package will generate revenue from multiple sources which include asking voters on the 2020 ballot to make permanent a half-cent sales tax currently set to expire in 2023. In voter surveys, citizens have indicated support for this extension, which has or is currently funding 36 different highway improvements in 19 corridors throughout the state.
Other components of the plan include new revenue generated through increases to wholesale diesel and gasoline taxes. These increases, the first in more than 20 years, are calculated at approximately 3 cents per gallon of gasoline and 6 cents per gallon of diesel.
Newton commented, “The trucking industry currently pays 46% of all taxes owed by Arkansas motorists and we are willing to pay more. We believe doing so will create a safer workplace for our drivers, better maintained infrastructure for our equipment and improve our ability to meet the demands of our customers.”
State legislators will also be asked to vote on new registration fees for electric and hybrid vehicles and to dedicate to roads future revenue received from casino taxes.
Arkansas has the 12th largest highway system in the nation, but ranks 43rd in spending on roads and bridges. Newton stated, “We fully support the highway plan outlined today as it is meaningful in addressing funding needs now and in the future. We are grateful for the work that has been done by so many in creating it. And we look forward to working with the General Assembly to ensure its implementation.”
