Arkansas' tire recycling program is struggling due to chronic underfunding, with scrap tires piling up across the state. The program relies on a state-mandated fee, but rising costs have outpaced revenues, leaving a funding gap. Efforts to increase tire fees have faced resistance, including a 2023 proposal that passed the Senate but stalled in the House, partly due to concerns over higher taxes.

Local officials and industry representatives testified before a legislative panel, emphasizing the need for sustainable funding. Suggestions included maintaining the $3 tire removal fee, implementing a new $30 fee for extra-large tires, and improving collection and tracking at volunteer-run tire collection centers. These measures aim to bridge the gap between the current $2.31 reimbursement per tire and the actual processing costs, which range from $2.80 to $2.90.

Privatization of the program has also been debated but faces opposition from local businesses concerned about increased costs and limited access to tire disposal options. Lawmakers are exploring solutions, including restructuring the fee system and enhancing enforcement to recover unpaid fees from delinquent retailers.

The legislative discussion, spurred by concerns from officials and industry players, could lead to new legislation in 2025 to stabilize the program and address environmental risks associated with illegal tire dumping and landfills.

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