Below is the HillCo client report from the October 28 House Select Committee on Transportation Funding, Expenditures and Finance.
The committee met to decide on committee recommendations to increase transportation funding. The following were discussion points:
- Bonds can be issued based on the amount of money in the Texas Mobility Fund; estimates show that current revenue streams will allow for additional bonding capacity from that fund; the committee will recommend an end to borrowing form the Mobility Fund
- The committee will recommend ending the gas tax administration allowance that goes to the Comptroller; this is more of a transparency issue; should let the Comptroller ask for those funds from GR in the normal appropriation process; this would mean an increase in education funding as well because a portion of gas tax money goes to the school fund
- The committee will recommend reducing the timely filer allowance for businesses that collect gas tax; would get some push back from the industry but it isn’t a hard sell; this would also mean an increase in money sent to the school fund
- The committee discussed motor vehicle sales tax; will recommend doing some runs to see what the diversions would look like starting with a small percentage and graduating it over the years
- The committee will recommend decreasing the floor from $50 million for projects that are allowable for design/build procurement; no need to increase the number of allowable projects because that provision will Sunset in 2015
- The committee will recommend ending diversions of title fee revenues from Fund 6 to the TERP fund as well as using some TERP money to pay off TxDOT debt
- General recommendation: Identify a priority process for the Unified Transportation Plan
Pickett: These recommendations represent the low hanging fruit; will not get to the $4 billion needed but in order to get to that amount it would take a lot more hard sells.
The following ideas were mentioned but left out of potential recommendations for various reasons:
- Gas tax increase or change in structure; this recommendation needs to come from the top
- Diverting auto part sales tax and diverting revenue from vanity license plates were also discussed but not moved forward
- Increasing registration fees and driver license fees were also tabled
- Changing the gas tax exemption for federal government agencies was also tabled
Larson: Would like some kind of definition for how Prop 1 funds will be used
Pickett: TxDOT will request the ability to use the funds; the money will be put through the formulas; the only thing that needs to be decided is how much money will go through what parts of the formula
Larson: Transportation Commission is showing a lot of arrogance toward the legislature; would like to limit their discretion until the next TxDOT Sunset in 2017