Asa's folly: Highway plan robs Peter to pay Paul

Maylon Rice
Maylon Rice

If the Governor wasn't going to listen to his Highway Task Force, why appoint them in the first place?

That's a good question to ask this week as Governor Asa Hutchinson trotted out his own plan for Arkansas' highways, roads and bridges.

It was not something the much praised Highway Task Force dreamed up. It was not what many had predicted the governor would do.

But ah, that Asa Hutchinson, Arkansas' current inhabitant in the Governor's office, he is one slick dude.

Hutchinson is leveraging a shuffling of state revenues, hoping for a surplus, while at the same time cutting taxes for the wealthy and even trimming mighty heavily the vaunted GIF (General Improvement Funds) accounts for all legislators.

General Improvement Funds are a state surplus, left over after the budget needs and demands are met. The amount of GIF fluctuates from year to year, budget to budget. But the funds have been "a life saver" for not only Legislators' "pet projects" back home but also the Governor's office.

And GIF has been abused by legislators and governors. Make no doubt about that.

There are few announcements like those when the sitting governor is able to extend $5,000 or $10,000 or $25,000 or more to a community seeking a new manufacturing plant and jobs. There is joy all around when the unexpected money for a rail spur, an additional water tank or the engineering study for such work is doled out by the governor's office.

That practice could soon come to an end.

So could the long practice of awarding rural volunteer fire departments a few thousand dollars here or there for new equipment. Or that of a legislator stepping up and making up for budget cuts to a library, senior citizen center or even Meals On Wheels.

While Hutchinson was making his pitch for using much of these GIF funds and even some very hefty taxes which are funneled into general revenues that will now be diverted to the Highway Department, he mentioned Medicaid.

And he mentioned the need to keep the federal dollars for Obamacare, now the Arkansas Private Option and hopefully his newly futuristic Health Care Task Force's recommendations for "Arkansas Works" as on-going.

In other words: Obamacare, the Private Option or Arkansas Works MUST BE CARRIED ON if the highways are to be fixed in Arkansas.

Killing the Medicaid funding from the federal government is a nonstarter.

Killing the Medicaid funding would derail the entire shuffling of the money towards Arkansas highways, roads and bridges.

And to all of those legislators who are Hell-bent on killing Obamacare, the Private Option or even Hutchinson's "Arkansas Works" proposal, do they have the votes to kill it?

Well Hutchinson, as our Governor, he just won't have it.

Hutchinson has tied the two issues together so the Conservatives will almost have to vote for actually both issues to make it work.

Hutchinson, his staff and others in the know, down in Little Rock, say a tax fuel increase is a non-starter.

A possible state fuel Tex increase was the main suggestion from the Highway Task Force group who at the Governor's urging met to discuss how to raise the needed funds.

A no tax pledge trumps shuffling around state revenues.

A no tax pledge trumps apparently, in many cases, killing Obamacare, the Private Option or the new "Arkansas Works" proposals.

A no tax pledge also trumps bringing back home a couple of hundred thousand dollars' worth of good will from rural fire house, libraries, senior citizen centers, county fairs, and festivals.

No tax pledges also trumps the governor's once fat "rainy day fund" for municipal and industrial projects at the drop of a hat.

We had all better hope the state revenues continue to grow.

If not, it might be leaner and meaner days ahead for state agencies who have already taken a big tax bite so a handful of super-rich Arkansans won't feel a state tax bite.

Robbing Peter to Pay Paul.

That is what it is -- if the votes are there to accomplish this in a special session.

Stay tuned.

-- Maylon Rice is a former journalist who worked for several northwest Arkansas publications. He can be reached via email at [email protected]. The opinions expressed are those of the author.

Editorial on 01/27/2016