Pryor Scrapbook Clippings, 1955-1980

One favorite topic that guber– natorial candidates are fond of talking about is the need for more highway funds, and they often discuss ways of raising the funds most efficiently while still keeping taxes within limit. The;;mabod of raisin& the funds is noLa solidly -established one, ·the Arkansas Highway Department admits: Next week, in fact, a con– sulting firm · is expected to be engaged by the state to study the funding situation in'hopes of coming up with the most efficient and equitable method of funding for this state, considering the needs and sources of possible revenue. Although about 99 percent of the Department's budget now com~s from two primary sources, fuel taxes and vehicle registration fees, it is possible that the consultants will name an alternate method when they present their findings to the legislature, which probably will be next Jariuary. The fuel tax, which is currently eight-and-a-half cents per gallon, draws about 70 percent of the Department's funds annually, while vehicle registration, ranging from $12 to $26 eer vehicle annually, brin~s in about 30 percent. . The Highway Department is operating on a bu<:lget of $275 million for fiscal year 1977-78. Besides the two current main sources of revenue, the consulting . firm authorized by state legislature recently will also be looking at the feasibility of a statewide bond issue, which has been implemented in the past in Arkansas, altho\lih that method has not been very popular with state citizens, according to Assistant Section Head of Economics and Finance of the Planning and Research agency of the Highway Department, "Skip– per" Bosley. "Probabiy the main reason it has not been successful is, you're asking the state to go into a large amount of indebtedness (with a bond issue)," according to Bosley. '.'And its kind of llard-peopl ·still remember the old bond issues of many years .ago, which were rather badly handled. It is just a general feeling people have about that method." "A lot of states have bond issues now, but most ·people, it seems, would just rather pay as they go." Bond issues have advantages and disadvantag~. "When you have a bond issue, the state can go out and do a lot of work right then. With the regular system, we have to ac- · cumulate the money, and use it as it comes in," Bosley said. "But there must be a favorable inter.. rate for the bonds. The economy. must be favorable." Whatever route is taken, the results have to be paid for by the people who live in this state. Whether the sources irtclude bond issues, fuel tax, registration fees or· general revenue for the state, the money is appropriated through taxes and fees. · . Therefore, going by the old adage "You get what you pay for," it is a question of what the people want and what they are willing to pay to get it, whether it· means an increase or even a decrease in the efficiency and output of the Highway Department. ''There is a need for an increase in revenue, and we hope that people will realize that the needs are," Bosley commented. "It doesn't matter whether gas is 30 cents or a dollar a gallon, all we get is that eight and a haH ceµts ." . Talking about the need for an increase, he noted that studies show that roads are wearing out 50 per- · cent as fast as they can be built, resulting in an increasing main– tenance problem. Bosley also noted that the past two winters, which have been ab– normally severe, ha:ve caused more than the normal amount of damage . to the state's 15,964 miles of high– ways. "It is a hard figure to pin down. The damage is hard to assess, but the estimate for this winter and last is $20 million," he said. Another consideration of the Department's budget must be noted in view of the "tumback funds" policy of the state. Under the current set-up, the state retains only 70 percent of highway. revenue funds, while distributing .15 percent among counties and 15 percent among cities in Arkansas. In ·1977, road user revenues amounted to $154,600,000, according to Bosley. Of that, White County received $427,638 and Searcy was allotted $190,235. Like the Highway Department, cities and counties are required to · use the money from the tumback funds for repair, construction and · ' , reconstruction of streets and roads. In interviewing six area and local residents on the funding system and · related issues last week, various responses were offered. Several of those interviewed indicated that it doesn't seem too important what the sources of highway funds are, since the funds will have to come from the same source anyway-the citizens of Arkansas. · They were unanimous in their responses on at lea1$t one point– however-''No more taxes!'' Their responses follow. • "Anyway we go it's gonna cost us," commented DONA_LD • •