Arkansas Gov. Committed to Diesel Tax Hike; Truckers Oppose

LITTLE ROCK (AP) — Gov. Mike Huckabee said Friday that he would propose a d`iesel tax increase to repair roads even though that tax is opposed by truckers who support him. The truckers and Huckabee are on the same side when it comes to opposing toll booths on Arkansas interstate routes.

Lane Kidd, president of the Arkansas Motor Carriers Association, said he stands by his early criticism of a 3-cent-per-gallon diesel tax increase that is part of a $2.3 billion road program proposed by the Governor's Citizens Council on Highways and Transportation.

Mr. Huckabee appointed the council to come up with ways to finance highway construction.

"I anticipate that my package is essentially going to be the proposal that we saw the governor's council present," Mr. Huckabee said, "which means that I've got to push for that 3-cent diesel tax as the only increase in taxation to fund the program. This is a responsible approach."

After a 15-month study, the council recommended a financing package that includes a $1.8 billion bond issue to be repaid by future federal highway dollars earmarked for the state and the diesel tax hike.

"Nothing in the study ... led me to believe that the trucking industry isn't paying enough in highway taxes to maintain those highways that the industry travels," Mr. Kidd said.

However, Mr. Kidd said the association's board will reserve judgment until it sees proposals by Mr. Huckabee and the state Highway Commission.

"The commission continues to want to improve the state's highways on the backs of the trucking industry. We may see three or four tax proposals that could directly affect trucking," Mr. Kidd said. "We'll have to look at where we'll come down on each of them. (The council's plan) could eventually be the lesser of several evils."