Our View

Our View

There’s the whole story, and there’s the ‘whole story’

Now, it seems the state’s top highway officials is chiming in on Gov. Asa Hutchinson’s highway funding plans, saying discussions of what Arkansas should do about its long-term highway needs ought to involve a fuller presentation of the facts that the public has seen to date.

Gov. Hutchinson was adamant that there would be absolutely no added taxes to either the gas or diesel fuel in coming up with the state’s matching share of federal dollars for upcoming highway needs.

Despite efforts by some lawmakers to introduce legislation during the governor’s recent special session that did call for what could be described as a substantial tax increase on gas and diesel fuel, Hutchinson was able to succeed with his no new tax plan, but not without criticism, particularly from Texarkana Sen. Jimmy Hickey.

Scott Bennett, director of the Arkansas Highway and Transportation Department is saying the fact that Arkansas has higher motor fuel taxes than any surrounding state has been cited often, but it doesn’t tell the whole story.

Okay then, let’s do “tell the whole story” by saying yes, Arkansas’ gasoline tax is 21.5 cents per gallon and its diesel tax is 22.5 cents per gallon. But, that doesn’t include the combined local, state and federal cents per gallon rates that became effective April 1, 2016.

According to the American Petroleum Institute, Arkansas motorists pay 40.20 cents of every dollar in taxes for a single gallon of gasoline.

That compares to 39.80 cents in Tennessee; 35.70 cents per gallon in Missouri; 37.19 cents in Mississippi; 38.41 cents per gallon in Louisiana; 35.40 cents per gallon in Oklahoma and 38.40 cents per gallon in Texas.

One of Sen. Hickey’s failed pieces of legislation called for increasing the state gas tax by five cents per gallon and the diesel tax by a nickel per gallon. Hickey said that would raise about $100 million more for roads in fiscal 2018.

Bear in mind folks, that doesn’t include the local and federal taxes on fuel.

Bennett’s argument is that, “The reason you can’t translate just this … into highway funding is because all these other states get other kinds of funding for highways that Arkansas doesn’t call highway funding. They get sales tax revenue, they get gaming revenue, they get what we term general revenue to spend on highways.”

BINGO!!!!! That’s been our point all along, and most of what Gov. Hutchinson has been considering has been alternative revenue sources, such as revenues generated from the sale of new and used vehicles, revenues derived from taxes applied to automotive parts and service and other areas such as:

• 25 percent of surplus general revenue.

• A part of investment earnings from the treasure’s office: $1.5 million in fiscal 2017; $20 million annually for fiscal 2018-2020; $25 million in fiscal 2021.

• A one-time, $40 million transfer from rainy-day funds.

• Stop diverting money that was intended for highways and is now going elsewhere.

• Cease diverting $8.4 million a year intended for highways that goes to the constitutional officers fund or the state central services fund.

The point to this argument is exactly what Bennett is saying that Arkansas must find alternative existing revenues rather than continuing to depend on gas taxes alone.

Furthermore, any attempt by politicians to raise fuel taxes should be decided by the voters.

BIBLE VERSE

I went by the field of the slothful, and by the vineyard of the man void of understanding; And, lo, it was all grown over with thorns, and nettles had covered the face thereof, and the stone wall thereof was broken down. Then I saw, and considered it well: I looked upon it, and received instruction. Yet a little sleep, a little slumber, a little folding of the hands to sleep: So shall thy poverty come as one that travelleth; and thy want as an armed man.

24:30-34

Proverbs