Asa Hutchinson Talks Highway Funding, Europe Trip

Gov. Asa Hutchinson talks to reporters about his trip to Europe.

Gov. Asa Hutchinson said Thursday that “everything is on the table” for the Highway Funding Working Group he created and charged with finding new ways to fund state highways by Dec. 15.

Addressing the nonprofit Arkansas Good Roads Foundation, Hutchinson said the group will hold its first meeting on June 24.

The governor said he wants the group to consider all options, including consideration of what 23 other states have done to find alternate highway funding. He suggested considering a vehicle-to-miles-traveled model as a means for calculating highway taxes.

Hutchinson said he is interested in more reliable funding streams for highways that don’t siphon money from other areas such as higher education. Arkansas’ highways are funded through gas and diesel taxes. 

“Everything is on the table,” he said. “But I’d like us to look at a new funding model that starts modestly. The reality is, there’s an anti-tax sentiment out there. We’ve got to take a long-term view of highway funding.”

His parting words to the group included a suggestion to keep expectations modest. “Then we can surprise some folks,” he said.

Europe Trip

At the Governor’s Mansion later that morning, Hutchinson talked to reporters about his upcoming trip to Europe, which he called a “marketing” opportunity for Arkansas.

The governor’s entourage will depart on Saturday and return to Arkansas on Friday, June 19. 

Hutchinson will meet formally with 17 companies at high-profile trade shows in France and Germany: the Paris Air Show and the METEC International Metallurgical Trade Fair in Dusseldorf.

Joining Hutchinson on the trip will be Arkansas Economic Development Commission officials and representatives from the Arkansas World Trade Center in Rogers, the Northwest Arkansas Regional Airport in Highfill, Clinton National Airport in Little Rock, the Arkansas Aeroplex in Blytheville, NanoMech of Springdale, Galley Support Innovations of Sherwood, the Northwest Arkansas Council and the Metro Little Rock Alliance.

Hutchinson credited former Gov. Mike Beebe for laying a foundation of economic development trips to Europe to help spread the word that Arkansas is “open for business.”

Previously: Last year, Beebe talked to Arkansas Business about his trade trip to the Farnborough International Airshow near London.

Hutchinson said he doesn’t expect to return with immediate announcements, but wants to plant seeds that could bear fruit several years from now. He plans more Europe trips while he’s in office and did reveal that there were “some opportunities close at hand that this trip could bear upon.”

Hutchinson said he’ll also meet with companies that already do business in Arkansas, including Dassault Falcon Jet and Lockheed Martin. Recently, state lawmakers approved an $87 million incentive package to help lure a major defense project to Lockheed’s plant in Camden.

“We have a great story to tell,” Hutchinson said. “This is a great opportunity for me to introduce myself as governor and show what a great opportunity Arkansas is for expansion and new companies. This trip is about great connections and great investment in Arkansas.”

Hutchinson noted that aerospace is the state’s top exporting industry, totaling more than $1.6 billion in 2014. He said that once the Big River steel mill project is complete, Mississippi County will be the country’s top steel-producing county.

The $1 billion steel mill, now under construction, is expected to employ more than 500 people.

New Appointments

Also Thursday, Hutchinson announced Duncan Baird as the new budget administrator for the state Department of Finance & Administration and Elizabeth Smith as Medicaid inspector general for the state.

Baird will begin his new position with DFA “probably next week,” Hutchinson said. His current role as budget director for the governor’s office will not be filled. Hutchinson said those duties will be parsed out among existing employees with continued assistance from Baird, who will continue to chair the highway funding task force.

Hutchinson also shared a letter he is sending to General Assembly members concerning his efforts to improve state contract practices and provide oversight for certain high-risk contracts with the Department of Human Services.