State highway chief pushes bond program

story by Aric Mitchell
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Scott Bennett says the Washington County Tea Party has a “disconnect” in understanding a highway bond program on the Nov. 8 general election ballot.

Bennett, the newly appointed director of the Arkansas State Highway and Transportation Department, spoke to representatives from across the River Valley and Northwest Arkansas Wednesday at the Holiday Inn in Downtown Fort Smith. The topic of discussion was future infrastructure projects within a framework of funding shortages.

The event was hosted by the Western Arkansas Regional Intermodal Transportation Authority (RITA).

Bennett noted that Arkansas has a pool of approximately $267 million with which to take on new infrastructure projects and improve existing ones versus around $23.7 billion in needs. The state boasts 16,416 miles of highway, the 12th largest in the country, ahead of states such as Illinois, California, New York and Tennessee. Still, Arkansas is 43rd in total highway revenue per mile, which, according to Bennett, means, “We have a lot of highways to take care of and not nearly enough money to do it.”

With a Nov. 8, 2011, ballot item calling for the renewal of the Grant Anticipation Revenue Vehicles (GARVEE) Bond program that was originally enacted in 1999, a significant portion of that money could be in jeopardy.

“I know the Tea Party in Washington County came out against it the other day and said they would not support it because they said the program that was enacted in 1999 was not a good program. They had no basis for saying that because we went from having some of the worst Interstates in the country to having some of the best Interstates in the country. That sounds like it did exactly what it was supposed to do. They said, ‘We think you need to take care of what we have and not build new highways. Well, that’s exactly what we’re doing. So it sounds like they were against it for reasons we were saying we were going to do it. So I’m not sure where the disconnect is,” Bennett said.

The GARVEE Bond reissue, like the first, would cover another 10-12-year installment plan. Federal funding would provide an upfront payment that would allow Arkansas to address its infrastructure maintenance needs. From that point, Arkansas would repay the bond amount over the installment term from the federal allotment received each year, which is around $505 million annually. GARVEE funds are used along with the 4 cent existing state diesel tax for Interstate Rehabilitation. No new taxes are raised for the program.

“If the GARVEE Bond Issue has any danger (to the public) at all, I don’t know what it is, because it’s nothing more than federally provided funds for the construction, or the reconstruction rather, of our Interstates,” Bennett said during an interview following his address. “But then again, about 20% of voters were against it last time. That could be because they didn’t understand how it worked, but that’s why meetings like this one are good. We can get the idea across that this is what it is, and this is what it’s not.”

One ballot measure coming in November 2012, which may have a more difficult time at the polls, was also a topic of discussion Wednesday. According to Arkansas Highway Commissioner Dick Trammel, an early survey regarding a constitutional amendment calling for a half-cent sales tax increase for off-Interstate construction, has yet to find its feet.

Trammel addressed spectators during a Q&A at the end of Bennett’s presentation: “We did some early surveys — I don’t have the numbers with me — but there wasn’t a lot of support at first. But the more specific we were with the use, we noticed support started to gain.”

Trammel is confident that when voters get a clear picture of how the funds will be used, they will vote to pass.

“And let me tell you, if you approve the half-cent sales tax, you’ll know exactly where the money is going to,” Trammel said.