Bond daddy alert | Arkansas Blog

Wednesday, March 26, 2008

Bond daddy alert

Posted on Wed, Mar 26, 2008 at 6:54 PM

    Will Mike Beebe's little severance tax on natural gas really produce enough highway construction to make it worthwhile, as a few of the Republican critics ask? Beebe said today he probably will propose a $575 million bond issue at the 2010 general election, possibly backed by the severance tax revenues, presuming that the legislature enacts the tax next week.
    The proposition would mirror the 1999 Interstate bond issue, the so-called GARVEE bonds, which pledged the state's allotment of federal highway matching funds and motor-fuel taxes. Since his proposal, unlike the Huckabee proposal that voters rejected in 2005, would limit the Highway Commission's bonding authority to the $575 million, Beebe was confident voters would go along. It would not entail higher taxes.
    But he was not sure that the severance tax revenues, since they would be linked to the volatile market price of gas, would make the bonds salable. Investors want certainty. But there should be no problem. Just pledge other highway revenues and the state's school funds, if need be. It was not widely circulated but the last bonds had a little caveat: general revenues would be used if highway-user monies were short.

From the ArkTimes store

Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

Readers also liked…

  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016
  • Tom Cotton's influence on Trump's new security chief

    U.S. Sen. Tom Cotton is getting credit for pushing President Donald Trump to select Lt. Gen. H.R. McMaster as his national security adviser, Politico reports.
    • Feb 21, 2017
  • Auditor Lea caught not telling the truth

    State Auditor Andrea Lea, who began her tenure in statewide office with a degree of competence unseen in some other Republican counterparts (think Treasurer Dennis Milligan particularly), is becoming more deeply mired in a political scandal.
    • Mar 4, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation