During the February 1, 2010 Joint House Committee on Transportation and Senate Committee on Transportation and Homeland Security, Texas Department of Transportation (TxDOT) officials presented current transportation finance challenges.
Deirdre Delisi, Chair of the Texas Transportation Commission, presented a report which included a needs assessment and financing challenges. The 2030 Committee was charged with independently determining the fiscal requirements for the state’s future transportation needs. According to the 2030 Committee, TxDOT needs to invest $315 billion in today’s dollars between now and 2030. The needs estimate focuses on the investment that will be necessary to maintain the pavements and bridges on Texas roadways, to prevent worsening traffic congestion in urban areas, and to ensure rural mobility and safety. The Committee based its estimates on several assumptions, including increased population growth and freight traffic between 2009 and 2030.
While the need for funding was established in Delisi’s report, she also pointed out current financing challenges. In FY 2009, state motor fuel tax revenue declined by 2.17 percent. Collections, so far, in FY 2010 through January are down 1.25 percent when compared to the same five-month period in 2009. Meanwhile, the amount of State Highway Funds appropriated in 2010 and 2011 correlates with a Comptroller’s revenue estimate that projected state motor fuel tax revenue would be 2.65 percent higher in 2010 (over 2009) and 1.98 percent higher in 2011 (over 2010). Additionally, during the 2008-2009 biennium, diversions totaled $1.57 billion and equaled 28.2 percent of TxDOT’s State Highway Fund Appropriation (calculation excludes bond proceeds and federal funding.)
Federal funding is also increasingly unreliable. SAFETEA-LU is the federal surface transportation authorization act covering certain transportation programs but recissions and uncertainty surround the program. The FY 2008 rescission resulted in a $13.5 million reduction in obligation authority and the SAFETEA-LU rescission resulted in a $103 million reduction in obligation authority. The future of federal funding remains uncertain with SAFETEA-LU’s continuing resolution set to expire February 28, 2010.
During the hearing members and witnesses discussed various methods of finance for future transportation needs which included: a motor fuels tax (indexed to inflation), public/private partnerships and the continuation of Comprehensive Development Agreements (CDAs), a vehicle registration fee, vehicle sales tax (putting those funds back into transportation), and local options. Although some tried to choose which financing option would be best, others said all “tools in the toolbox are needed”.
Michael Morris, director of transportation in the Transportation Department of the North Central Texas Council of Governments (NCTCOG), argued that Texas “is in so much trouble” lawmakers should utilize EVERY tool in the tool box.
Some legislative members explained their hesitancy to pass a bill that would increase the motor fuels tax because it would be vetoed by leadership. They encouraged the witnesses to get grassroots efforts and citizen support behind transportation projects and funding needs that would accompany those projects.
During the hearing there were also quarterly updates from the Department of Public Safety (DPS), the Department of Motor Vehicles (DMV), and public testimony. For a complete agenda, an archive of the hearing and all presented handouts/testimony, please visit: http://www.senate.state.tx.us/75r/Senate/commit/c640/c640.htm
