Jeremy Gillam
LITTLE ROCK – Arkansas’ House speaker on Monday wouldn’t rule out supporting a tax hike to raise money for highways, while the leader of the state Senate said any increase would have to be offset by a tax cut elsewhere.
The legislative leaders said they’re gauging how much support there is for Gov. Asa Hutchinson’s highway funding plan as well as proposals being floated for longer term ways to raise money for the state’s roads. The Legislature formally adjourned this year’s session on Monday, but Hutchinson has said he’ll call lawmakers back May 19 to take up his highway plan.
Hutchinson has proposed tapping into one-time money and general revenue to raise money for roads, but lawmakers have floated other proposals that include an increase in the state’s gas and diesel tax. Hutchinson has said he doesn’t want to raise taxes for roads, and any hike is likely to face opposition from Republicans who control both chambers of the Legislature.
House Speaker Jeremy Gillam wouldn’t rule out supporting a tax increase as a long-term solution for highways, but said there needs to be consensus behind any plan.
“It’s not my option A to raise taxes on the citizens, but I’m going to be open minded enough to at least hear the members out, see why they feel like their ideas are viable and then where we go from there,” Gillam, a Republican from Judsonia, told reporters.
But Senate President Jonathan Dismang said he was doubtful that a tax increase on its own would win support in the Legislature.
“I think in order for us to have a tax increase like that, it would have to be fully offset by a tax decrease,” Dismang, a Republican from Beebe, said. Dismang, however, cautioned that an approach like that would mean less general revenue for other parts of the budget.
Hutchinson has proposed diverting some tax revenue from vehicles sales to roads, but the proposal faces resistance from Democrats who say the move would come at the expense of other needs such as public schools and higher education. Hutchinson has said the loss in general revenue will be made by returns on state investments that are expected to generate $20 million a year.
Aside from increasing the motor fuel tax, lawmakers have also floated partially repealing the state’s sales tax on motor fuels to raise more money for roads. Hutchinson has not said whether he’d write the proclamation for the session in a way that would prevent lawmakers from bringing up other highway proposals.
Americans for Prosperity, a conservative group that had previously clashed with Hutchinson over his support for the state’s hybrid Medicaid expansion, endorsed his highway plan Monday. The group urged lawmaker to oppose any tax increases.
“We hope the Legislature will follow Governor Hutchinson’s encouragement to prioritize existing resources instead of milking the Arkansas taxpayers for more of their hard-earned money,” David Ray, the groups’ state director, said in a statement.
(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Sign up for Daily E-news
