Arkansas governor announces $300M highway funding plan

Interstate 49 is shown in this file photo.
Interstate 49 is shown in this file photo.

LITTLE ROCK — Arkansas' governor is proposing raising an additional $300 million in highway funding a year through a plan that depends on increasing taxes and tapping into expected casino revenue.

Republican Gov. Asa Hutchinson on Monday unveiled his highway funding plan after his income tax cut proposal faced resistance from some GOP lawmakers who have vented frustration about inaction on finding new money for roads.

Hutchinson's proposal includes asking voters next year to extend a half-cent sales tax that was approved in 2012 for highways. It also calls for imposing a new fuel tax that will increase gas prices 3 cents a gallon and diesel 6 cents a gallon.

It would also dedicate at least $35 million in tax revenue from casinos that were legalized by voters last year.

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