Arkansas House approves highway funding bill

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

Speaker of the House Robert Moore (D-Arkansas City) succeeded with room to spare.

HB 1902, which would add 5 cents to the diesel tax in Arkansas to pay for interstate repairs and projects, passed the full House on a 67-24 vote. It only needed 51 votes for passage to be sent for a popular vote in a statewide election. The bill must also still clear the State Senate and be signed by the Governor in order to be presented in a statewide referendum.

The bill allows Gov. Mike Beebe to call for a special election on the tax increase or it could be added to the general election ballot of November 2012.

HB 1902 is only an act of the legislature, so its referral qualifies as a Referred Question, not a proposed constitutional amendment. The General Assembly can refer up to 3 proposed constitutional amendments to voters in every odd-year session, but it can offer as many referred questions as it chooses. It is a rarely used tactic.

Had the Speaker called for a straight up or down vote on the diesel fuel tax increase, it would have required a three-fourths vote of the House chamber.

Moore is also advocating a proposed constitutional amendment for a half-cent sales tax increase that would allow for four-lane highway construction throughout the state. That measure is contained in HJR 1001 by Rep. Jonathan Barnett (R-Siloam Springs), a former highway commissioner and current chair of the House Public Transportation Committee. It would also be referred to voters for approval in the November 2012 general election.

If eventually approved, HB 1902 allows for the nickel increase in diesel taxes to work in conjunction with an existing interstate highway bond program. It would allow for up to $1.1 billion in repairs and construction on the state’s interstate system.

Moore has said that the two measures – HB 1902 and HJR 1001 – would work in conjunction with one another to expand and support the state’s road needs, which are estimated to be as high as $19 billion. The two measures combined would provide about $2.8 billion for highway projects.