State lawmakers looking forward to a busy spring

State lawmakers looking forward to a busy spring

Not only do we have our fiscal session scheduled to begin April 13, but we are likely heading into two separate special sessions this spring. One session will address highway funding and another will address the future of health care in the state.

Just this week, the Governor announced his proposal for highway funding.

The issue is now an urgent one after Congress passed a federal highway bill that could provide at least $200 million a year for road funding in Arkansas if we provide a partial match.

The state needs $46.1 million in additional matching funds by Sept. 30and an average of about $50 million a year thereafter.

If Arkansas does not provide a partial match, then $2 billion in federal highway funding over the next ten years will be diverted to other states.

The Governorʼs proposal would divert $40 million in surplus funds for the first year.

In subsequent years, the sales tax from new and used cars will be diverted from General Revenue to the highway program. This will be phased in over a period of 5 years.

His plan also calls for $4 million a year from the diesel tax to be directed to highways and 25 percent of surplus going forward will be transferred to the Highway Department.

The recommendations are just that, recommendations. Ultimately, it is up to the legislature to decide what funds and how much will be diverted.

The plan does not call for any new taxes but if passed, it would be the first time in Arkansas history that General Revenue funds would be directed to highways. It will be up to us to ensure that the funds that are being diverted do not impact any services now being provided by the state.

I and my colleagues will be reviewing this plan and others recommended by the Governorʼs Working Group on Highway Funding over the next several weeks. As always, I will continue to update you on our progress.

From State Representative Deborah Ferguson