Arkansas Blue Ribbon Committee on Highway Finance – August 19, 2009
Posted on August 19th, 2009
Date & Time: Wednesday, August 19, 2009 at 10:00 AM
Location: Room 171 , State Capitol
Agenda: http://www.arkleg.state.ar.us/assembly/2009/Lists/Meetings/Attachments/12054/I7741.pdf
Attachments: none
10:11 am – It looks like this may be my last live blog. I don’t know the details and will have to get back with you later.
10:12 am – Congressman Vic Snyder, 2nd District Congressman is speaking to the committee about Federal Higway Finance.
10:13 am – The federal gas tax has not been increased since 1983.
10:15 am – The Congressman is talking about how the initiative to lower fuel consumption is impacting tax revenues.
10:16 am – President Obama is seeking an 18 month extension, but Highway Commissioner is seeking longer term funding due to planning needs.
10:20 am – There is some discussion of bonding federal highway funding. Also a per barrel fee on crude oil, and a speculative tax on crude oil features.
10:23 am – The ideas mentioned are apparently from Mr. Oberstar. (spelling?) It didn’t sound like Congressman Snyder thought all of them were good ideas.
10:25 am – Rep. Glidewell asked the Congressman Snyder is a change from a per gallon tax to a percent of fuel cost. Congressman Snyder did not think that the public would be receptive currently, but may understand the situation more as time goes on.
10:28 am – I was just thinking, a tax/fee on the crude would be a particularly insidious tax because it would hide the tax somewhat from the end consumer.
10:30 am -Rep. Gary Smith expressed concern about taxing locally produced crude.
10:32 am – Mr. Bill Fletcher is asking Cong. Snyder asking what the probabilty of some of the things mentioned to raise federal highway funds and how much it will mean for Arkansas. Cong. Snyder feels like there is so much going on that there may be delays in addressing it. He said he would look into it and get information to the committee.
10:35 am – Mr. Lambert is concerned that Congress with implement a tax and it impact the the ability of Arkansas to raise taxes for highways. Congressman Snyder says he does not see that happening in the short term.
10:37 am – Rep. Glidewell is asking about the Stimulus funding that was supposed to go to shove ready projects. Congress Snyder said he didn’t think that their was a problem with release of the funds. One of the panelist mentioned that the problem is only 3% was put for highways and infrastruction, then there are also problems with recisions and obligations.
10:39 am – Mr. Mark Sullivan, Senior Advisor at the Office of Innovative Program Delivery at the Federal Highway Adminstration, is currently speaking to the committee.
10:45 am – Late last month congress voted to transfer $7 billion into the Federal Highway Trust Fund. Last year $8 billion was transfer. These transfers were only for keep existing obligations solvent. He says that would lead you to assume that the funding system currently in use by the federal system is exhausted.
10:47 am – The Oberstar bill proposed spending $500 billion over the next six years. The existing level of spending is about $320 billion and the trust fund cannot sustain that, as mentioned above. There will be a need for transfer of about $20 billion from federal general revenue over the next 18 months.
10:51 am – There are apparently two “Blue Ribbon” Commissions at the federal level that have issued two different reports. I can’t seem to find them on the internet right now.
10:58 am – I think that federal bureaucrats should be prescribed for people suffering from insomnia. I wonder how much that would add to the cost of healthcare?
11:03 am – Too much coming too fast. Not much that is not already being discussed on FOX and CNN. Mostly platitudes without taking a firm stand on anything.
11:08 am – Mr. Murphy is expressing concerns about the distribution and has asked Mr. Flowers to come to the microphone to address those concerns.
11:09 am – Mr. Flowers is taking about the funding mechanism available to rural states. He says that we are concerned that decision making is tending to migrate the larger MPO in the larger urban states. He is expressing concerns that mechanisms that have been mentioned do not help rural states like tolling and public private partnerships.
11:12 am – Mr. Sullivan mentioned that 70% for the interstate system exists in rural areas. He seem to reject Mr. Flowers assertion that tolls and public private partnerships would not work in Arkansas. He pointed to sucessful projects of that type in Mississippi and Alaska.
11:15 am – Rep. John Lowery is asking rather than states being required to make up the difference in the funding programs mentioned above that why doesn’t the federal do that instead. He pointed out that Arkansas is required to have a balanced budget, but the federal government has access to the funds. Mr. Sullivan’s answer is not very responsive to the question, he started talking about federal loan programs.
11:19 am – Mr. Flowers mentioned that some of those mechanism are being used for the Bella Vista By-Pass.
11:21 am – Rep. Maxwell is asking about the reasons for considering the various gas taxes. Mr. Sullivan says that most Americans don’t really “see” the taxes associated with the current gas tax, but the per mile tax makes the customer be aware of the direct correlation of “use” to the amount you pay. He is saying that it is probably not feasible in the next 10 years.
11:24 am – Rep. Maxwell is discussing concerns people have about some the issues that may come from a per mile tax. He is asking what they are going to do to educate the public about it.
11:27 am – Rep. Maxwell has requested a couple of copies of the reports mentioned above for the committees evaluation.
11:28 am – Mr. Lynch mentions that all highway miles are not equal and inquires if the weigh of the vehicle would calculate into the amount paid per mile. Mr. Sullivan said that he had seen that in one study. He stated that the trucking industry feels that it pays its fair share with various taxes and fees.
11:31 am – The subcommittee appointments were made. These subcommittee are where the action will really start, you will probably see the establishment of a monetary “goal” of how much money to raise.
11:36 am – I do not have the attachments to the agenda. I will see if I can get the committee assignments to you later.
11:38 am – Senator Capps that they will soon for a “Public Information and Promotion Committee.” Hoooo boy! Don’t get me started. I am probably already in enough “trouble.”
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