The committee met to receive updates from Texas Department of Transportation and the Department of Motor Vehicles relating to recent legislation and issues surrounding transportation planning and funding.
 
Victor Vandergriff, Commissioner, Texas Department of Transportation

  • From HB 20 (84R) have been working on performance metrics, project prioritization and selection and funding formulas and allocation
  • The goal for Prop 7 is to follow a process similar to what the legislature handed down with Prop 1
  • It has been since 2008 since funding formulas and all the money that goes into the UTP has been looked at; currently in the process of studying that in order to balance the needs of the state (congestions, connectivity, border trade, etc.)
  • Expect to be bringing things to the legislature in December; trying to push it out as quickly as possible
  • Chairman Joe Pickett noted that last time in 2008 the discussion did not include how much goes into each of those categories
    • If there is a need and desire to shift that around that would be appropriate; the best way to do that is to work hand in hand with MPOs and RMAs to make sure everyone gets a fair shake
  • Pickett mentioned that some areas have discussed being able to holdover their yearly allocations in order to build it up and save it for a larger project
    • From a hopeful perspective, many are hopeful that they will have the ability to do that
    • Want MPOs to be able to make project selections but there has to be a state priority as well
    • James Bass, CFO, TxDOT, responded that the agency would like to see money between regions combined to get projects going; do not want every region waiting for a bulk of money to begin work
    • Mark Williams, Interim Deputy ED, TxDOT, responded MPOs are currently working together to try and figure out some of those potential issues
  • Pickett asked when the agency needs to have information from the MPOs about how they are working together, performance measures, etc. in this manner so work can be done when the money becomes available
    • Vandergriff noted the agency is hoping to get reports in by March; MPOs need the lead time before the money is able to be deployed
  • Discussion ensued regarding prioritization of projects; all projects will be prioritized based on their region and then projects will be prioritized statewide; projects will also be judged based on performance metrics once they are completed to help make better decisions down the road
  • Rep. Larry Phillips noted Prop 7 money will be coming down the line in a while and other money from Prop 1 is coming in, but that doesn’t mean that all the money needed will be available to address all of the state’s problems; hoping through the process, projects can be made cheaper and more cost effective methods for delivering projects are found
  • Rep. Lyle Larson noted that the advertising that pushed people to support Prop 7 was regarding alleviating congestion; need to keep our eye on the ball
  • Rep. Armando Walle asked how much money is needed to fund transportation needs; also, is Prop 7 enough to meet those needs
    • Bass noted there has been previous testimony that there is a need of $5 billion per year to keep up with transportation needs; Prop 1 and Prop 7 are going to make significant progress toward that goal; it is a hard number to arrive at; have to consider that a lot of assumptions are made in arriving at that number such as what will be the role of tolling and private financing in the system moving forward; the $5 billion number was based on the 2030 report done by the Texas Transportation Institute plus impacts in the energy sector that have added to those needs since the report was done

 
Jeff Austin, Commissioner, Texas Department of Transportation

  • State Infrastructure Bank (SIB) was made to help cities, counties, municipalities access money in short run to avoid delaying projects
    • Allows cities and municipalities to avoid raising taxes for a one time purchase that they can pay off over a couple of years
  • This has been short term gap financing and has been a big help to small towns
  • The money is used primarily for roadways, but we may need to look at overall infrastructure needs in the future
  • SIB has been flexible lender, but not a lender of last resort; there is a rigorous process to access money
  • Pickett asked where the money is coming from in the SIB
    • $60 million was moved out of the highway fund in 2011
    • There is $338 million currently available to be lent; this money can be eaten up quickly
  • Pickett asks if TxDOT can lend money outside of the SIB
    • Only if money is for a toll road
  • Commission can currently fund SIB with money from the highway fund, but not the mobility fund
  • Some counties have been late on payment, but there have been no loan defaults out of the SIB
  • Simmons believes late payments should be considered when counties ask to borrow in the future
    • We see if counties can pay outstanding loans more quickly before loaning more money
  • Pickett notes that TxDOT has used money from the mobility fund for prop 12 and prop 14 without paying back a portion of the debt; tax payers are shouldering the burden
  • TxDOT is looking at putting in limits for counties and cities because there are no written limits on where the money could be loaned
  • We want to make SIB available for economically disadvantaged areas
  • Simmons says that Water Development Board has a SIB, and they looked at limiting the types of loans they made, so that the cash flow would not totally dry up and suggests TxDOT look at this possibility
  • Committee should consider allowing state to use non-appropriated dollars to create something like an infrastructure fund to help airports, ports, economic development corporations, toll roads
    • Allows SIB to focus on relieving congestion while still addressing other issues
    • Keeping Texas’ economic miracle alive requires capital investment
  • Pickett asks how much of SIB is utility relocation because it is a large help for communities
    • 5.7% of SIB because they are usually small loans
  • Larson wants TxDOT to compile list of projects funded by prop 7 for accountability
    • Pickett wants to go back to ARA in 2009 as starting point
  • We want more coordinated partnership between TxDOT and NPOs to prioritize projects
    • This should avoid money being spent to plan and then not having money to execute the plan
  • Pickett wants to know if they will be asking for more FTEs
    • Looking to reconfigure what they have, but could be looking for more FTE capacity
  • Pickett comments that legislature needs to know the answer to this question, otherwise could get caught with too many or too little resources
    • We hire FTEs closer to award dates of contracts

 
Linda Flores, Texas Department of Motor Vehicles

  • DMV puts money in State highway fund, Texas DMV fund and, GR fund
  • State Highway Fund is the only fund that goes into transportation
  • For FY 16, DMV will be financed through GR, but starting in FY 17 DMV will be funded by Texas DMV fund
  • Overweight permit fees are expected to dip over the next biennium, but the total number of registrations should increase 3% over the next biennium
    • Decline in oil and gas industry is reason for expected dip in overweight permit fees
  • Pickett asks how Two Steps, One Sticker is working so far
    • Phase one of single sticker is still in effect which attempts to sync up dates of registration
    • Phase two beginning in March will institute 90 day window for renewal beginning 90 days before expiration
  • Phillips asks about two steps one sticker relating to trailers; trailers did not previously need inspection before getting registered; how much revenue is coming in as a result of this enforcement?
    • No answer on revenue
    • Trailers always needed inspection, but it was not enforced prior to two steps one sticker
  • Pickett says some trailers should be exempt because people will simply not get the trailers inspected and take the chance of getting caught

 
Meeting adjourned