PROPOSITION 1 AND SELECTED
TRANSPORTATION PROJECTS IN
TARRANT COUNTY
SOUTHEAST TARRANT TRANSPORTATION PARTNERSHIP
OCTOBER 8, 2014
WHERE DOES FUNDING COME FROM?
THE HIGHWAY TRUST FUND
Established in 1956
Functions as an accounting mechanism
• Cash in: excise tax on motor fuels, trucks, tires
• Cash out: spending on highway and transit programs
Made of two accounts
• Highways
• Mass Transit
The future status of the HTF is uncertain
• Changes in oil prices, the economy, and fuel efficiency
all have major impacts on the HTF
• Since September 2008, Congress infused the HTF with
tens of billions to keep the account solvent
TRANSPORTATION SYSTEM FUNDING BASICS
Point of Collection*
State Motor Fuel Tax Rates
(Cents per Gallon)
Gas/gasohol: 20.0
Diesel: 20.0
Diversions: Round 1
•
•
•
•
Federal Motor Fuel Tax Rates
(Cents per Gallon)
Gas/gasohol: 18.4
Diesel: 24.4
1/10 cent per gallon to EPA
L.U.S.T. Trust Fund
1% General Fund
Refunds for non-road use
$7.3 million to County & Road District Fund
25% Education
Federal Highway Trust Fund
Fund 006
Highway Account
Mass Transit Account
REFUNDED
Less Than Put In
Diversions: Round 2
DPS
Other State
Agencies
TxDOT Budget
Plan, Maintain & Build
Transportation Projects
Portion Returned
to Texas
*The Federal Government also imposes taxes on large
trucks/trailers, truck tires, and usage fees for large trucks.
Portion Sent to Other
States
FUNDING SHORTFALLS
• Transportation funding shortfalls exist across all levels
of government (federal, state, regional, local)
• Innovation and collaboration have become very
important
• Traditional funding sources are unreliable
 Shortfalls create project delays
 Priorities are forced to change
• Highlights need to pursue alternative, innovative
funding options
 Toll roads
 Public-private partnerships
 Managed (Express) Lanes
PROPOSITION 1
Prop 1 will appear on the November 4, 2014, ballot
for voter approval
Proposed language:
“The constitutional amendment providing for the
use and dedication of certain money transferred to
the state highway fund to assist in the completion of
transportation construction, maintenance and
rehabilitation projects, not to include toll roads.”
ELIGIBILITY FOR PROP 1 FUNDING
Eligible projects include: constructing, maintaining,
and acquiring rights-of-way for public roadways other
than toll roads
Not eligible:
• Toll roads or managed toll lanes
• Programs (e.g., ITS, safety, signals, bicycle/pedestrian)
• Transit projects
GENERAL PRINCIPLES OF PROP 1
• Focus on large projects
• Focus on projects on the interstate highway system,
then other on-system projects
• Few, if any, off-system projects
• Seeking very traditional, roadway projects
• Projects should be ready for construction “soon,”
though not necessarily “shovel-ready”
• Projects must be in the current mobility plan
• While maintenance projects are eligible, they should
not be a focus (except for in energy-producing areas)
PROP 1 – ANTICIPATED FUNDING AMOUNTS
• Anticipate $1.4 - $1.7 billion available statewide in
first year
• Dallas-Fort Worth region’s share would be
approximately $200-300 million (in first year)
• Annual allocations in the future, subject to
legislative committee review of Rainy Day fund
School Fund
General Revenue
1
2
4
75 Percent
3
5
6
Source: Senator Robert Nichols, Chairman, Senate Transportation Committee
257 Percent8
Annual Severance Tax Allocation
(Current Law)
$3.0
$2.5
Billions
$2.0
Rainy Day Fund
$1.5
School Fund
$1.0
General Revenue
$0.5
$0.0
1
2
3
75
Percent4
5
6
Total Oil and Gas Severance Tax Collected Per Year
Source: Senator Robert Nichols, Chairman, Senate Transportation Committee
7
25
Percent8
Annual Severance Tax Allocation
(Proposed Amendment)
$3.0
$2.5
Billions
$2.0
Transportation Fund
Rainy Day Fund
$1.5
School Fund
$1.0
General Revenue
$0.5
$0.0
1
2
3
75
Percent4
5
6
Total Oil and Gas Severance Tax Collected Per Year
Source: Senator Robert Nichols, Chairman, Senate Transportation Committee
7
25
Percent8
MAJOR ROADWAY IMPROVEMENTS
IN SE TARRANT COUNTY
12
13
4
15
16
17
QUESTIONS?
Christie J. Gotti
Senior Program Manager
NCTCOG
817/608-2338
cgotti@nctcog.org
19