a to z€¦ · fund 6 - see state highway fund. gas tax – current rate (set in 1991) is $0.20 per...

February 2017

www.transportationadvocatesoftexas.orgChairman: Dennis Kearns, (512) 415-5607 • Chairman-Elect: Michael Reeves, (806)-775-2338 • Secretary: Drew Campbell, (214) 850-9395

Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Jennifer Newton, (512) 478-4691; Andrea French, (832) 459-5116; Gary Bushell, (512) 478-6661Transportation Advocates of Texas, Inc. (TAoT), 13526 George Road, Suite 107, San Antonio, Texas 78230

100 Most Congested – TxDOT maintains a list of the most congested roadways in the state on their website.2060 Permit - Permit issued by TxDMV that allows the operation of a vehicle that exceeds the maximum allowable axle weight by 10 percent or the maximum allowable gross vehicle weight by five percent. Vehicles with “2060” permits cannot exceed legal weight limits on interstate highways or the Defense Highway Network. They can travel on most state and county roads but may not exceed load-zone road or bridge postings.CDA - A Comprehensive Development Agreement is an agreement with a private entity that typically provides for the design and construction of certain transportation projects but may also provide for the financing, ROW acquisition, maintenance, and operation of transportation projects. (Also see PPP)Design-Build - A project delivery method that combines two, usually separate, services into a single contract. With design-build procurements, TxDOT executes a single, fixed-fee contract for both architectural/engineering services and construc-tion. Design-Build also allows for simultaneous activities which speed up project completion.Fund 6 - See State Highway Fund.Gas Tax – Current rate (set in 1991) is $0.20 per gallon with $0.15 going to the Highway Fund and $0.05 going to public education. The federal gas tax is an additional $0.18 per gallon. Highway Trust Fund (HTF) - Created by the Highway Revenue Act of 1956 as a mechanism to finance an accelerated highway program, including the Interstate Highway System. Each year highway users pay billions of dollars in federal fuel taxes which end up in the Federal Highway Trust Fund.Local Toll Authorities - Examples NTTA, HCTRA, CTRMAManaged Lane - A type of highway lane that is operated with a real-time management scheme, such as lane use restrictions or variable tolling, to optimize traffic flow, vehicle throughput, or both.MPO - A metropolitan planning organization (MPO) is a local decision-making body that is responsible for overseeing the metropolitan transportation planning process. An MPO is required for each urban area with a population of more than 50,000 people.Multimodal, Intermodal - An integrated transportation chain combining at least two means of transportation. Prop 1 – Constitutional amendment passed by voters in 2014 that allows for collections from the oil and gas severance tax to be transferred to the Highway Fund once a sufficient balance (determined by a legislative committee) has been reached in the Economic Stabilization Fund. Prop 12 Bonds – Voter Approved General Obligation bonds in the amount of $5 billion to provide funding to address congested highways, rehabilitate bridges and improve connectivity between the state’s metropolitan areas.Prop 14 Bonds – Voter approved bonds payable from deposits to the State Highway Fund in the amount of $6 billion to provide funding for highway projects.Prop 7 – Constitutional amendment passed by voters in 2015 that allocates the first $2.5 billion in motor vehicle sales tax revenues above $28 billion in a fiscal year to the Highway Fund and 35% of the excess above the next $5 billion to the Highway Fund beginning in 2020.

Public-Private Partnerships (P3s or PPPs) - Contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in financing, delivering, operating and maintaining transportation projects on behalf of the state agency. (See CDAs)Regional Mobility Authority (RMA)- An independent local government agency authorized by state statute (Chapter 370, Transportation Code) with the main function of transportation project development, finance, and implementation.Request for Proposal (RFP) - A bid solicitation in which TxDOT announces that funding is available for a particular project and companies can place bids for the project’s completion. The RFP outlines the bidding process and contract terms,

and provides guidance on how the bid should be formatted and presented.State Highway Fund – Constitutionally dedicated fund for the construction, maintenance, and policing of public roads. Major revenue sources are the state gas tax, federal reimbursements from the federal gas tax, and motor vehicle registration fees. Also known as “Fund 6.”Texas Clear Lanes – Texas Transportation Commission initiative to reduce congestion on our most congested roads.Texas Department of Motor Vehicles - (TxDMV) - The agency was created in 2009 to oversee the registration of motor vehicles and assist motor vehicle-related businesses. This responsibility was under TxDOT before 2009.

Texas Mobility Fund – Revolving fund in the state treasury, established in 2001, that is administered by the Texas Transportation Commission for the design, construction, and expansion of state highways. Texas Transportation Commission – Five member Commission appointed by the governor that oversees TxDOT. TNC - Transportation Network Company (Uber, Lyft, etc.).Transportation Funding - State transportation has traditionally been funded by the three-legged stool of motor fuels taxes, vehicle registration fees, and federal funds, and in recent years has added bonds and debt, tolls, an infrastructure bank, and other financial tools. Transportation Reinvestment Zone - The local governing body designates a zone in which it will promote a transportation project. Once the zone is created, a base year is established, and the incremental increase in property tax revenue collected inside the zone is used to finance a project in the zone.Transportation Revenue Estimator and Needs Determination System (TRENDS): http://trends-tti.tamu.edu/UTP - Unified Transportation Program (UTP) used by TxDOT as a 10-year plan to guide transportation project development. The UTP is developed annually in ac-cordance with the Texas Administrative Code and is approved by the Texas Trans-portation Commission annually prior to August 31. The UTP authorizes projects for construction, development and planning activities and includes projects involving highways, aviation, public transportation, and state and coastal waterways.Vehicle Registration Fees – Current rate (set in 1985) is $50.75 for most vehicles.

A to Z

January 2017

www.transportationadvocatesoftexas.org

Chairman: Dennis Kearns, (512) 415-5607 • Chairman-Elect: Michael Reeves, (806)-775-2338 • Secretary: Drew Campbell, (214) 850-9395Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Jennifer Newton, (512) 478-4691; Andrea French, (832) 459-5116; Gary Bushell, (512) 478-6661

Transportation Advocates of Texas, Inc. (TAoT), 13526 George Road, Suite 107, San Antonio, Texas 78230

Legislative Program - 85th SessionTransportation Advocates of Texas supports a forward thinking and flexible approach to planning for our state’s transportation and mobility needs in order to improve connectivity, reduce congestion, and ensure economic growth, including:

Full appropriation of Proposition 1 and Proposition 7 funding and continued efforts to end diversion of transportation funding.

Infrastructure expansion and maintenance of current capacity that is cost effective and equitable to all stakeholders.

Innovative tools for financing transportation projects including tolling, managed lanes, and public private partnerships.

Local governments’ ability to generate revenue to fund construction and maintenance of transportation infrastructure and oppose efforts to restrict that ability.

Technological advances in transportation planning including autonomous vehicles and intelligent infrastructure and innovative delivery systems.

February 2017


Chairman: Dennis Kearns, (512) 415-5607 • Chairman-Elect: Michael Reeves, (806)-775-2338 • Secretary: Drew Campbell, (214) 850-9395Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Jennifer Newton, (512) 478-4691; Andrea French, (832) 459-5116; Gary Bushell, (512) 478-6661


A Unified Voice SupportingInvestment in Transportation

Officers and Board MembersDennis Kearns .................................................................................................. TAoT Board Chairman BNSF Railway (retired)Michael Reeves ............................................Chairman-Elect & Panhandle-West Texas Region Ports-to-Plains AllianceDrew Campbell ...........................................................................................................Board Secretary Dallas Regional Mobility CoalitionVic Boyer ....................................................................................... Vice Chair - Legislative Relations San Antonio Mobility CoalitionVic Suhm .................................................................................. Vice Chair - Financial Management Tarrant Regional Transportation CoalitionJennifer McEwan......................................................................Vice Chair - Research & Education Gulf Coast Regional Mobility PartnersJennifer Newton ...............................................................................Vice Chair - Communications AGC of TexasAndrea French .....................................Vice Chair - Membership and Regional Coordination Transportation Advocacy Group - HoustonGary Bushell................................................................................................ Vice Chair - Nominations Alliance for I-69 Texas / I-14 Gulf Coast CoalitionBrandon Janes ............................................... Austin Region Director & Immediate Past Chair Jackson Walker LLPJames Carlow, Bowie County Judge ................................................... Northeast Texas RegionJackie Butler, Greater El Paso Chamber of Commerce ................................... El Paso RegionJim Jeffers, Nacogdoches City Manager ....................................................... East Texas RegionPete Saenz, Mayor of Laredo .................................................................................... Laredo RegionNancy Berry, Brazos County Commissioner ............................................ Brazos Valley RegionElizabeth Grindstaff, San Angelo .................................................... West Texas Central RegionAlex Meade ..............................................................................................South Texas/Valley Region Mission Economic Development Corp.Clayton Henderson, Port of Beaumont ....................................................... Beaumont RegionNelda Olivo, Port of Corpus Christi Authority ......................................Corpus Christi RegionLindsay Mullins, BNSF Railway ........................................................................Corporate MemberDoug Pitcock, Williams Brothers Construction Co. ..................................Corporate MemberDon Durden, Civil Engineering Consultants ..............................................Corporate MemberSteve Stagner ........................................................................................................Corporate Member American Council of Engineering Companies, TexasPatrick Rhode, Cintra US ..................................................................................Corporate Member

TAoT Member Organizations

Transportation Advocates of Texas is a non-profit group made up of local governments, mobility coalitions, port authorities, economic development organizations, regional alliances, state associations and employers dedicated to helping find solutions to the mobility challenges facing Texas. We are committed to providing leadership in the pursuit and maintenance of sustainable financing solutions to fund the infrastructure investments needed to serve a fast growing state.

What We DoWhen Transportation Advocates of Texas (TAoT) was organized in 2010, it had a mission – finding a way to bring together many advocates to more effectively engage all members of the Texas Legislature and state leaders in support of additional resources to address a growing highway funding gap. State leaders answered the call with Proposition 1 in 2013 and Proposition 7 in 2015. Texas voters gave them overwhelming support.

Legislative Advocacy - Keep the PromisesTAoT works with members of the Legislature and state officials to build support for transportation funding. We have assisted in development of significant additional funding sources in the past two legislative sessions. Even more funding will be needed in the years ahead to address growing congestion, safety, air quality and efficiency challenges. TAoT is urging lawmakers to keep the promises made to voters by fully appropriating highway funding as provided in Prop 1 and Prop 7 and by resisting any future effort to resume revenue diversions from the State Highway Fund to agencies other than the Department of Transportation.

Building Public AwarenessTexas’ highway network is the backbone of its economy. To improve mobility and adequately fund major transportation system upgrades it is important to have the support of citizens, business leaders and property owners. TAoT members continue working to build a grassroots network to help the public understand that delays in addressing mobility problems will inevitably result in more traffic congestion, greater economic losses, missed job opportunities and higher safety risks. Along with public awareness and advocacy, TAoT proudly works to recognize the efforts of those who champion transportation and the vital role it plays in commerce, family life and public safety.

ADVOCACY ON ONE PAGE

www.TransportationAdvocatesOfTexas.orgContact Leslie Harlan at 210.688.4407

Thank YouFor Being Part of Transportation Funding 101

More than 100 people participated in the Transportation Advocates of Texas’ transportation funding seminar on February 7th. Transportation funding options outlined in the House Transportation Committee’s Interim Report were explained and assessed. You can download a copy of the Committee Report in the LIBRARY section of the TAoT website: www.TransportationAdvocatesofTexas.orgIt is up to the Legislature to decide what alternatives are best to address the $3 billion to $4 billion annual shortfall in transportation funding. The solution should be funding that is predictable, sustainable, transportation related and grows with the needs of the state.

Dr. Jennifer McEwan, TAoT board member, and Jim Reed, TAoT chairman, provided a funding overview and addressed questions.

2013 2014 2015 2016 2017

$7BillionProjected

$4.0BillionProjected




$2.0BillionProjectedShortfall




Total Highway Contract Awards

THE TEXAS HIGHWAY FUNDING CLIFF - Funding for new highway construction projects is set to plunge after 2013. Awards in the current year are based on borrowing and one-time funding sources.

Total Highway Contract Awards

If you were unable to attend, the presentation materials and additional information can be found at our website.

TAoT produces one page advocacy documents to call attention to specific transportation funding proposals and to help lawmakers and staff understand the potential impact of legislation under consideration.

$6

5

4

3

2

1

0

Un�lled Balance

of$5 BillionFunding

Gap

$650MILLION

$2.5BILLION

$2.5BILLION

$2.5BILLION

$2.5BILLION

$650MILLION

$650MILLION

$650MILLION

$650MILLION

$650MILLION

$1.2BILLION

$1.2BILLION

$1.4BILLION

$1.3BILLION

$1.6BILLION

$1.5BILLION

$430MILLION

$430MILLION

FY 2020FY 2019FY 2018FY 2017FY 2016

Highway Fund Diversions Ended by Statute in 2015

Biennium

BILL

ION

S

BienniumFY 2021

Biennium

% of Vehicle Sales Tax Revenue (Proposed Prop 7)(LBB Projected Estimate)

Dedicated General Sales Tax (Proposed Prop 7)

Dedicated Oil & Gas Production Tax(Prop 1 Passed in 2014)(Projected Estimate)

The Texas Department of Transportation has made the point that approximately $5 billion a year in new and sustained annual funding is needed to keep congestion levels and pavement conditions in our state from deteriorating further. The Texas Legislature took major steps this year to address this minimum funding need.

Lawmakers heard the message sent in 2014 when 80% of the voters passed Proposition 1 to increase highway funding. Legislators responded with two more measures this year that will add new predictable funding streams. At the end of the 2015 legislative session they decisively passed SJR 5, a two-part proposed amendment to the Texas Constitution that would direct billions each year to the State Highway Fund. The Texas Senate voted 31-0 and the Texas House voted 141-1 to send the package to voters. It will appear as Proposition 7 on the November 3rd ballot along with six other proposed amendments.

Constitutionally Dedicated FundingThe Proposition 7 highway funding proposal would dedicate up to $2.5 billion a year in state general sales tax revenues to the State Highway Fund for construction and maintenance of non-tolled highways and bridges. This revenue would start flowing to the Highway Fund in FY 18.

No sales tax would go to the Highway Fund in a specific year if a major recession caused sales tax revenues to drop below $28 billion for that year. Additionally, lawmakers by a two-thirds vote could cut the $2.5 billion by up to 50% in any given year.

The second part of Proposition 7 provides an opportunity to capture some of the future growth in motor vehicle sales tax revenues and dedicate it to highway projects. Voters would instruct the state to transfer 35% of the growth in this revenue stream above $5 billion annually beginning in FY 20. This is estimated to produce about $430 million for the Highway Fund in the first year and will increase as vehicle prices increase and more vehicles are purchased. Neither component of Prop 7 represents a tax increase to consumers.

June 22, 2015


Chairman: Brandon Janes, (512) 236-2095 • Chairman-Elect: Dennis Kearns, (512) 415-5607Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Gary Bushell, (512) 478-6661


The amendment would have the $2.5 million provision expire in 2032 and the vehicle sales tax provision expire in 2029. However, the Legislature can by simple majority vote extend both in 10 year increments.

Ending Diversions From the Highway FundEliminating a long-standing source of frustration, legislators also passed a budget that stopped the diversion of about $650 million a year in revenues from the motor fuel tax and vehicle registration fees going to non-highway spending – primarily for the Department of Public Safety. They also passed HB 20 that prohibits future diversions. The result is more sustainable and long-term funding for transportation projects.

Last year’s Proposition 1 constitutionally dedicates a portion of each year’s oil and natural gas production taxes to the State Highway Fund. That amounted to $1.7 billion in 2014 but with lower oil prices is projected to be about $1.2 billion in each of the next two years. This funding stream could be higher or lower in future years.

Texans Get A Chance to Say “Yes” to Sustained FundingIn combination, the proposed Proposition 7 sales tax dedication, Proposition 1 revenues and the end of Highway Fund diversions will eventually add up to the $5 billion a year minimum highway funding need identified by TxDOT.

The leadership of Senator Robert Nichols and Rep. Joe Pickett, chairmen of the transportation committees in each house, was a central factor in this achievement, as was the strong support of Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Joe Straus.

By approving Proposition 7 on November 3rd, Texans will address a critical state need and reduce the severity of our a transportation funding shortfall. They can join lawmakers in approving dedicated funding that will keep Texas from falling further behind on congestion, safety, interregional connectivity and deteriorating roadways.

Texas Makes Major Headway on Filling Highway Funding Gap

Legislature Incrementally Providing More Predictable Funding

Texas faces a highway funding cliff with the amount available for new construction set to plunge after this year.

HB 3664 will start Texas moving in the direction necessary to fill the $4 billion per year gap in critically needed transportation project funding. HB 3664 increases vehicle registration fees by $30 annually and provides a growing income stream projected to reach $730 million a year by FY 2018.

Transportation Advocates of Texas also recommends bringing a portion of the vehicle sales tax into the Highway Fund through a floor amendment to HB 3664. The amendment would set a base amount of $2.8 billion per year from vehicle sales taxes that would continue to go to General Revenue. Of the amount collected each year in excess

May 7, 2013


Chairman: Jim Reed, (210) 614-3724 • Vice Chairman: Vic Suhm, (817) 262-7230Treasurer: Jennifer McEwan, (512) 786-9096 • Secretary: Brandon Janes, (512) 236-2095


of $2.8 billion, one-third would go to the Highway Fund and two-thirds would go to General Revenue starting in FY 2016. This will add approximately $297 million to highway funding in the first year and will grow with Texas.

The SB 1 Appropriation Bill includes an Article XI Rider that would eliminate $200 million per year in diversions from the Highway Fund to Department of Public Safety operations.

The net result of these proposals is illustrated in the chart above with additional funding available for highway contracting of approximately $800 million a year in FY 2014 and FY 2015. The annual total will increase in future years with growth in the number of vehicles sold and registered in Texas.

BILL

ION

S

$30 Increase in Vehicle Registration Fees (HB 3664 - Estimates from Fiscal Note: LBB)One-Third of Growth in Vehicle Sales Tax Revenues Over $2.8 Billion Per Year Base Moves to Highway Funding in FY 2016 (amount shown re�ects a projected 3.5% annual growth in total vehicle sales tax revenues)$200 Million Per Year in Reduced Diversions from Highway Fund to DPS (an Article XI Rider in adopted SB1 Appropriations Bill for FY 2014-15) Projected Contract Lettings Under Current Law (TxDOT Finance Division 2012 Cash Forecast)

Minimum Amount Needed to Maintain System and Add New Capacity

(2030 Committee Report - Worst Acceptable Conditions)

$2.4BILLION

$3.2BILLION

$4.0BILLION

$7.0BILLION

$609MILLION

$200 MILLION

($6 Billion/Year Highway Funding Target Adjusted to Re�ect 20 Year Average CPI In�ation Rate)

0.0

1.0

2.0

3.0

5.0

6.0

7.0

8.0

(2013 contract lettings represent an exceptional year using bond funds and one-time funding sources)

2013 2014 2015 2016 2017 2018 2019

4.0

HB 3664 by Representative Darby, providing for a $30 increase in motor vehicle registration fees, has been reported by the full House Appropriations Committee.

Most motor vehicle registration fees have not been raised since 1985, some 28 years ago. Since then inflation has cut the purchasing power of

registration fee income by almost 50%. Texas is facing a transportation funding cliff that must be addressed with additional revenue if we are to continue to maintain and build an acceptable highway system.

Please vote FOR HB 3664 on 2nd Reading.

The Last and Best Chance to Address the Texas Transportation Funding Cliff

Funds Available for TxDOTContract Lettings

When the Transportation Advocates of Texas (TAoT) was organized in 2010 it had a mission - finding a way to bring many advocates together to more effectively engage all 181 members of the Texas Legislature in support of additional funding to address a rapidly growing highway funding gap.

The mission was, in part, the outgrowth of advice from Rep. Todd Hunter, chairman of the House Calendars Committee and part of the leadership team that must decide what and when legislation should be debated and put to a vote.

Hunter counseled that transportation supporters from various regions and organizations were very effective in communicating with the members of the House and Senate transportation committees but that they failed to engage the other 160 or so members to help them understand why they should support additional and sustainable funding for transportation. That meant that the votes were simply not there to pass anything but short-term, patchwork measures that allowed highway construction to continue but did not create the reliable, dedicated transportation funding that avoids the pitfalls of unpredictable spikes and slumps in highway money.

In the 2011 legislative session the first task was to make sure lawmakers authorized issuance of all of the voter approved Proposition 12 bonds so that TxDOT had the ability to continue building. Another milestone of the 2011 session was legislation that greatly increased the power of Transportation Reinvestment Zones to be used by local governments in partnership with TxDOT. That session also successfully passed a substantive TxDOT Sunset Bill. But there was no progress on approving additional highway funding.

TAoT spent 2012 targeting lawmakers with the message that a major funding shortfall was looming in 2014 and beyond as borrowing authority was depleted.

2013 LEGISLATIVE SESSIONBy the time the 2013 legislative session rolled around TAoT had expanded the number cities, counties, mobility coalitions, port authorities, economic development organizations, chambers of commerce, regional alliances, state associations, major employers and concerned business interests ready to pitch in to press lawmakers for action on transportation funding.

January 12, 2016


Chairman: Dennis Kearns, (512) 415-5607 • Chairman-Elect: Michael Reeves, (806)-775-2338 • Secretary: Drew Campbell, (214) 850-9395Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Jennifer Newton, (512) 478-4691; Andrea French, (832) 459-5116


enough votes to get any new funding bill passed. That led a determined Gov. Rick Perry to call three special sessions. By that time TAoT had developed a large and diverse legislative advocacy team and was using hand delivered messaging to give legislators a concise, trustworthy analysis of each proposal.

In the end, lawmakers agreed to an outside the box proposal by Senator Robert Nichols, chairman of the Senate Transportation Committee and a former highway commission member. Legislators sent voters Proposition 1 which dedicates a portion of annual oil and gas production taxes to the State Highway Fund. Our coalition encouraged voters to support Prop 1 and they sent a clear message to lawmakers with 80% approval. The result was that redirected funds immediately started flowing to the State Highway Fund – $1.7 billion in FY 2015 and $1.1 billion in FY 2016.

TAoT started the session with a Capitol event called Transportation 101. More than 100 attended, mostly the legislative staff members who help lawmakers deal with constituents and keep up with policy discussions and pending legislation. It was a watershed event that put a bright spotlight on the details of the House Transportation Committee’s Interim Report recommending an end to diversions from the State Highway Fund and urging passage of new funding to address declining revenue from the state fuels tax. There was a sense that the climate surrounding transportation funding had finally changed for the better. That session, however, was a study in frustration. While state leaders pressed for legislative action, there were not

SUCCESS IN 2015Along with Prop 1 passage, the 2014 General Election resulted in the election of state leaders who were campaigning on the need for additional permanent and sustainable transportation funding.

As the 2015 legislative session got underway, TAoT continued to focus on educating lawmakers in one-on-one contacts. We staged a second standing room only Transportation 101 seminar which included hopeful remarks by Rep. Joe Pickett, chairman of the House Transportation Committee.

It was obvious that momentum was flowing in the right direction when lawmakers signaled they would eliminate diversions of about $650 million a year. That erased a major roadblock to new highway funding proposals.

At the end of the 2015 session lawmakers decisively passed SJR 5, a two-part proposed constitutional amendment to direct billions each year in general sales taxes to transportation. Proposition 7 dedicates up to $2.5 billion a year in state general sales tax revenues to the State Highway Fund for work on non-tolled highways and bridges starting in FY 2018. It also dedicates a portion of future growth in motor vehicle sales tax revenues starting in FY 2020, estimated at $430 million in the first year.

In an historic show of support for transportation, the Texas Senate voted 31-0 and the Texas House voted 141-1 to send the package to voters. Proposition 7 was approved by 83% of Texas voters, another clear message to lawmakers that Texans believe transportation is a core function of government and must be funded adequately and in a sustainable way that allows multi-year project planning, design and construction.LOOKING AHEADThere is more work to be done. The buying power of the fixed gasoline tax shrinks each year while vehicle fuel efficiency gains and fewer miles driven per vehicle apply more downward pressure on traditional revenue. Oil and gas production tax revenues dedicated by Prop 1 track energy prices, down more than 60% in two years. Fewer toll viable projects are on the horizon and sentiment in favor of toll projects has declined. The Texas highway funding gap is still a long way from being filled. Transportation advocates must continue to champion sustainable transportation funding and work with state and federal lawmakers to approve additional incremental funding sources. Our goal is for Texas to have a suite of robust, predictable, long-term financing sources and tools that will meet all of the state’s varied transportation needs.

After a Productive Five Years Advocates Still Have Much To Do

TAoT Transportation 101 Orientation at Capitol

Transportation Advocates of Texaswww.transportationadvocatesoftexas.org

By the 1960s the Texas highway system was among the best in the world. Drivers noticed that travel got smoother and faster when they crossed the state line. That system is now aging badly at the same time that Texas is experiencing eye-popping growth in population, daily vehicle miles traveled and the percentage of trucks on our highways. All are signs of a state where traffic provides a daily snapshot of vibrant commerce and busy lives.

The newly drafted Texas Transportation Plan 2040 projects the state’s population will increase by 17 million over the next 25 years, about 60% more than the current 28 million. As people continue to move to Texas, and the economy continues to grow, the transportation system must expand to accommodate this growth. Since 1990 our population has increased by 55%, daily vehicle miles traveled have increased 70% while roadway centerline miles have increased only 7%.

$5 Billion Needed to Stay EvenThe Texas Department of Transportation has maintained that approximately $5 billion a year in additional contract lettings are needed – above existing revenues – to maintain current conditions on the state’s highways. Additional funds are needed to adequately address damage and critical safety improvements

February 16, 2015


Chairman: Brandon Janes, (512) 236-2095 • Chairman-Elect: Dennis Kearns, (512) 415-5607Vice Chairs: Vic Boyer, (210) 688-4407; Vic Suhm, (817) 262-7230; Jennifer McEwan, (512) 786-9096; Gary Bushell, (512) 478-6661


related to intense truck activity in areas impacted by energy industry development.

Keeping congestion levels and pavement conditions from deteriorating further by meeting minimum transportation funding is important for the safety, economic livelihood and quality of life of current and future Texans.

Prop 1 Was A StartBy an 80% majority Texas voters sent the overwhelming message in passage of Proposition 1 that they believe highway funding is a top priority. Prop 1 addressed part of the state’s shortfall but Prop 1 revenue is -tied to oil and natural gas prices and will fluctuate from year to year. Texas needs additional transportation funding sources that are predictable, able to adjust to inflation, independent of fuel source, transportation related, and constitutionally dedicated. Prop 1 was a start – but only a start.

The Transportation Advocates of Texas encourage members of the Texas Legislature to develop and implement reliable funding mechanisms to incrementally fill the $5 billion shortfall needed to keep our state from falling further behind on congestion, interregional connectivity, safety and highway pavement scores.

0

2

4

6

8

10

$11

Annual Contract Lettings Required to Keep Congestion and Pavement Conditions From Deteriorating Further

Estimated Annual Contract Lettings Based on Funds Available From Vehicle Registrations and State/Federal Fuel Taxes*

$5.5 Billion

Billions in Constant

2014 Dollars

** The Biennial Revenue Estimate for FY16 & FY17 predicts Proposition 1 revenue of $1.2 billion per year. Proposition 1 funds are linked directly to oil and natural gas prices making future annual revenue levels uncertain.

* Source: Texas Transportation Plan 2040

$1.2 Billion$650 Million

$2.5 Billion

$1.85 Billion

Prop 1 Revenue to State Highway Fund**End Non-Constitutional Diversions

SJR 5 - Dedicated Vehicle Sales Tax Revenues Starting in FY18 With Voter Approval

Funding Needed From Other Incremental Sources

$5 Billion/YrFunding Gap

Incrementally Addressing the Texas Transportation Funding Gap

a to z€¦ · fund 6 - see state highway fund. gas tax – current rate (set in 1991) is $0.20 per...

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