Arkansas Plans Bond for Roads

The Arkansas Legislature last week began considering a proposed $575 million bond for an Interstate repair program that would be partially financed by a three-cents-per-gallon increase in the state diesel fuel tax.

The proposal was announced last week by Gov. Mike Huckabee and the state Highway Commission. If approved, it would pay for repairs to 322 miles of Interstate roadway in Arkansas.

Most of the bonds would be financed by the federal government. State officials said raising the diesel tax — from the current 18.6 cents to 21.6 cents a gallon over a three-year period — would bring in $13 million a year when the tax increase is completed. Cities and counties would receive $3 million annually in new diesel tax income to repair their roads, while the remainder would be used to help finance the bonds.

Also last week, legislation prohibiting the Highway Commission from tolling Interstates without the approval of the legislature was defeated in the House Transportation Committee. The commission says it plans to submit a proposal to the Federal Highway Administration to place tolls along Interstates 30, 40 and 55.