The Governor’s Working Group on Highway Funding presented its official report to Gov. Asa Hutchinson on the evening of Dec. 15.
The report examines short-, mid- and long-term funding needs and outlines four specific proposals:
- Increase motor fuel taxes; transfer road-user revenue from general revenue
- Implement revenue-neutral strategies
- Phased-in motor fuel & diesel tax increase
- Eliminate the sales tax exemption for motor fuel and diesel
Read the full report here.
Hutchinson will review the recommendations and announce his decision in mid January, he said in a statement.
President Barack Obama signed a five-year, $305 billion highway bill earlier this month.
Passage of the bill means that Arkansas must come up with about $110 million in new revenue to meet federal matching and ensure its share of the funding, said Craig Douglass, executive director of the Arkansas Good Roads Foundation and a member of the working group.
Douglass said it’s likely that the governor will call a special session to address the issue.
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