On November 14, the House Select Committee discussed the distribution of state proposition funding as it relates to the enabling legislation in HB 1, 83rd Legislature, 3rd Special Session.
Chairman Pickett began opening remarks
- Reviewed the process on how TxDOT can access the funds from the Prop 1 constitutional amendment that passed during the Nov. 2014 General Elections
- TxDOT will need to request the funds from the LBB
- Pickett thinks LBB may put specifications on those funds
- Sarah Keton with LBB in regard to questions from members said the LBB will put together some information in regard to how those funds and debt service on Prop. 14 and Prop. 12 will be impacted
- This is not a one-time withdrawal but a process each year and the funding amount has doubled since the legislatures last met
- The amount could be $1.75 billion to go towards the highway fund
- Would like to see a move toward recommending that a larger percentage (50% of the current $1.75b) of the funding go into the MPO category – local funding (category 2)
- 35% towards category 11
- 15% towards energy sector (In light of recent $200 million released and $224.5 million provided during last session)
John Barton, Mark Williams TxDOT
- In allocating $200 million in the energy sector took a variation of approach they used when allocating the $224.5 million but for this amount the areas with active production were a focus
- All 254 counties were eligible the first time but in the recent allotment, only counties with active production
- Pickett said 70% of the funds would be controlled by TxDOT according to the recommendations the Blue Ribbon committee established by the agency whereas his recommendation is putting the funds mostly in the hands of the local/regional areas
- Pickett mentioned he would not like to see trolley projects, bike lanes allocated the funds but, instead would prefer the funds go to areas that people were thinking of when they voted for the proposition
- Pickett said could still allocate to category 1 maintenance and category 12 discretionary but within categories it could get confusing but thinks members will need runs on how that impacts the communities
- Pickett asked for method on Category 2 – the one he is recommending 50% of funding go to
- Barton said it is generally divided 2 ways – 85% to larger MPOs (10) and 15% by formula for smaller MPOs
- In regards to questions about international bridges, Barton said under Cat. 2 the formula volume is captured in total but not necessarily a specific focus
- Rep. Armando Martinez asked about larger MPOs; Hidalgo and Cameron Co.’s combine to be the 4th or 5th largest metropolitan area in Texas with a population over 1.2 million
- Barton noted the areas have become contiguous with one another and there have been conversations regarding whether they should combine
- It is important to determine whether combining them would increase or decrease funding to the RGV
- Pickett asked if a district can receive funding under category 2 and category 11
- Yes; under state law each district gets money every year under category 11; 70% based on vehicle miles travelled in that district; 20% based on how many miles the district has; 6% based on truck traffic; all 25 districts would receive money if prop 1 funding was put into category 11
- Rep. Ron Simmons asked about every district getting $2.5 million from category 11
- That happens every year regardless; any money above the $2.5 million per district per year must be distributed based on the formula
- Simmons asked if there is any way that once the money gets down to the district that a district could put the money toward a toll project that may be farther down their list
- In the appropriations process the intent for that not to be done was clearly expressed
- Pickett noted that moving money around to put into tolls would kill currently planned projects because every appropriated dollar has been spoken for
- Simmons noted he has heard concern about shifting funds to be able to pay for toll projects
- Pickett asked about rural communities without an MPO; will they get category 11 funding
- Barton replied that each district has around 8 counties or more; even the most rural districts have highways that carry a lot of truck volume and include a lot of lane miles because of their size
- Pickett asked what Commissioner Victor Vandergriff thinks about what has been discussed today
- Vandergriff noted he appreciates the direction from the committee
- Pickett asked if what he laid out would give more control than what the Blue Ribbon Committee was laying out
- Yes; that committee also agrees with the local control philosophy
- Pickett asked about getting runs for how the money would distribute through the formula
- Williams would be happy to put something together
- Picket noted it is important to get a bulk of the money to projects because it is impossible to know how much money will be provided from oil and gas severance taxes in the future
- Rep. Lyle Larson asked about the difference between the two proposals; the blue ribbon proposal was 60% for cat 2 and cat 11, 20% for maintenance and 20% for the energy sector
- Pickett recommends 50% cat 2, 35% cat 11; nothing for maintenance because maintenance dollars have been increased for this biennium and can be increased next biennium in regular budgeting; will also be recommending putting another $260 million towards the energy sector to be distributed very specifically
- Rep. Sergio Munoz asked for something to be distributed that shows what percentage of funding has gone to every district through category 11 in the past
- Pickett asked about prop 1 funds being used for rail
- Barton replied that funds may not be used for rail
- Pickett noted it was not his intent to create a recommendation from the committee; just wanted to have the discussion and see if everyone was amenable to having more local control over the dollars
- Simmons would like to know how the commission would prioritize projects if there were no local entities and they had full control; it would be a good exercise as a way to evaluate how local groups are doing with their own prioritization
- Pickett asked when the next blue ribbon committee will meet
- The date hasn’t been set yet
- Martinez asked how international bridges can be added to the funding formula
- Barton noted that can be discussed over the next 12 months as MPOs are brought into discussions
Public Comment
Don Dixon, Texan
- Wants to be sure no money is going to toll roads and all the prop 1 funds are spent the way they are intended
Pickett noted a report will be coming out to the members to ensure everyone agrees on the recommendations. If there is disagreement the committee may meet again to discuss the report. The members can also make additional recommendations that can be added if the committee is agreeable.