The Texas Department of Transportation approved 12 previously unfunded transportation projects in the Greater Houston area—three of which are in Fort Bend County—that will be funded this year as a result of the passing of Proposition 1 last November.

The Houston-Galveston Area Council—through collaboration with local governments, metro planning organizations and TxDOT's Houston and Beaumont districts—presented at a Feb. 3 public meeting the 12 priority projects it had identified to receive Prop. 1 funding in 2015. The projects span across Fort Bend, Harris, Montgomery, Galveston and Brazoria counties. H-GAC officials took public comments into consideration before making a formal recommendation to TxDOT on Feb. 26, specifying that these projects be funded with Prop. 1 money in 2015, H-GAC Director of Transportation Alan Clark said.

"[The H-GAC] did not have a detailed selection criteria for these projects, but we were guided by legislative direction and direction from [TxDOT] to advance projects that could be ready for construction to begin in 2015," Clark said. "We looked to develop a list that fit within the funding available, but also provided the best benefit to the Houston region."

Texas voters passed Prop. 1 with 80 percent approval, which amended the state constitution to authorize the redirection of half of the revenue generated from severance taxes levied on oil and gas extraction—ordinarily deposited into the Economic Stabilization Fund, or Rainy Day Fund—to the State Highway Fund. A total of $1.7 billion was deposited into the SHF for use in 2015. A little more than $278 million of that $1.7 billion has been allocated to TxDOT's Houston district.

"Some of the priority projects identified were advanced by two or three years, and one of the projects was sped up by 20 years," Clark said. "In every case, the Prop. 1 funds are enabling us to do these projects sooner and in some cases, at all."

However, even with the passage of Prop. 1 adding $1.7 billion to the SHF in 2015, transportation experts said state transportation funding still falls short of the projected $5 billion needed annually to keep up with a rapidly escalating population and aging infrastructure. As a result, alternative funding sources continue to be explored by the state Legislature to make up for the shortfall.

"The focus for most of us in the Legislature this session is on transportation and making sure we get that funded," state Rep. Rick Miller, R–Sugar Land, said. "We are so far behind in taking care of our transportation infrastructure, and it is very important to places like Fort Bend County, so we are very focused on that issue. We have the resources to help fund transportation, and I fully expect that to happen in this session."

Prop. 1 projects

The priority projects that will receive Prop. 1 funds in 2015 were broken down into three categories.

Major highway reconstruction projects are the most expensive. The projects in this category include the $93 million widening of Hwy. 59 in Fort Bend County from west of Spur 10 to Darst Road and the $98 million widening of Hwy. 290 in Harris County from west of Bauer Road to FM 2920.

Seven projects—two each in Harris, Montgomery and Fort Bend counties as well as one in Galveston County—fall into the second category of interchanges and other highway reconstruction. Included in this category are two projects in Fort Bend County. The first is the $8.3 million widening of Hwy. 90 from Hwy. 6 to the Grand Parkway. The other project is funding the additional $7.5 million needed to widen FM 2234 from the Fort Bend Parkway to FM 521.

The final three projects fall under the last category of highway rehabilitation. This includes the base repair and overlay on FM 523 in Brazoria County and surface treatment on I-45 in Galveston County.

The 12 projects that were selected have all been on H-GAC's radar for a considerable amount of time and are viewed as some of the most critical when it comes to addressing connectivity or congestion issues, H-GAC Program Manager David Wurdlow said. Each project is already on H-GAC's long-range transportation plan but few have had any funding sources identified.

"These are projects that are ready to go," Wurdlow said. "The designs are ready, the environmental reviews are mostly completed or nearing completion and they meet all the requirements for any project receiving Prop. 1 funding."

A related bill—House Bill 1—outlined how Prop. 1 funds can be used. It specifies that funds can only be used for the construction, maintenance, rehabilitation and acquisition of right of way for public roads. Funds cannot be used for toll roads.

Of the 12 projects, only two have funding support from other sources, such as from state or federal funds that were previously awarded. About $20.7 million has been secured for the $28.2 million project to widen FM 2234 in Fort Bend County. In Montgomery County, $1 million has been raised for a $3.9 million project to do base repair and overlay on FM 3083.

"Some of these projects are designed to eliminate bottlenecks on major thoroughfares and others needed additional funding to let a larger project move forward," Clark said. "The latter is true for the FM 2234 project in particular. It is a $20 million project, but it needed another $7.5 million to be able to get it started this year."

The remaining projects, including widening Hwy. 290 from Bauer Road to FM 2920, are unfunded at this point. The effort to widen Hwy. 290 has already been launched, but funding has only been secured for the portion from Loop 610 to the Grand Parkway, officials said.

TxDOT will soon begin to finalize the work to get these projects ready to be bid on by contractors so work can begin on them this year, Clark said. Construction on some of these projects will start within the next few months and some will be started on later in the year, such as the Hwy. 59 project.

"There is no mandate that these projects have to be started this year," Clark said. "The money for them is there and does not disappear even if they do not get started this year, but it will be disappointing if they do not."

Funding a shortfall

TxDOT estimates its unmet annual transportation needs are about $5 billion, which includes $1 billion for recurring maintenance, $3 billion for mobility projects and $1 billion for repairs related to increased energy sector activity.

The Texas comptroller has estimated that about $1.2 billion statewide will be available through Prop. 1 funds in fiscal year 2016 and slightly more than that in fiscal year 2017, which represents about $500 million less than what was allocated in 2015, Clark said. Even if funds from Prop. 1 stayed at $1.7 billion a year, it would only amount to about one-third of the money TxDOT needs each year to keep up with routine road maintenance.

In an effort to make up for the approximately $3.5 billion needed—in addition to Prop. 1 funds—to fund transportation annually in the state, newly elected Gov. Greg Abbott and Lt. Gov. Dan Patrick have called on the state Legislature to find ways to increase transportation funding by $4 billion annually.

One solution being explored by the Texas House and Senate is to end the diversion of funds from the SHF, which will provide about $1.6 billion over the next biennium to transportation, Miller said.

"In the past when the state was not as wealthy, money that was dedicated to come into the SHF was being syphoned off to pay for things like public safety or other areas where money was needed," Miller said. "Those diversions are still in place, so what we want to do is end those diversions so that we can dedicate those intended collections of money and fees to the right place."

Another funding option being explored is Senate Bill 5 and Senate Joint Resolution 5, which were authored by state Sen. Robert Nichols, R–Jacksonville, who heads the Senate Transportation Committee.

The proposed legislation—which was approved by the Senate Transportation Committee on Feb. 25 in an 8–1 vote—would allocate the first $2.5 billion collected by the motor vehicle sales and rental tax to the general revenue fund as it does under current law and the next $2.5 billion each year would be dedicated to the SHF. Additional revenue in excess of $5 billion would be split evenly between the two accounts. Funds allocated to the SHF from motor vehicle sales and rental tax revenue could only be used for the acquisition of right of way, construction and maintenance of non-tolled roads and bridges, and to pay off general revenue transportation-related debt.

"With the things we are planning for this session to help fund transportation, we will be able to add about $4.1 billion to the [SHF] annually," said state Sen. Lois Kolkhorst, R–Brenham, who also sits on the Senate Transportation Committee.

Kolkhorst said the proposed legislation is expected to generate about $2 billion a year for the SHF, and as the state's population continues to grow and more people purchase vehicles, that amount will increase.

State Sen. Rodney Ellis, D–Houston, a member of the Senate Transportation Committee, was the sole vote against SB5 and SJR5. Ellis said that even though transportation is an important issue that needs to be addressed, the proposed legislation would take funding away from other issues that also need addressing.

"I could not in good conscience support legislation that will restrict the ability of future legislatures to meet our state's needs," he said. "By constitutionally dedicating this funding, we are creating a new multibillion dollar hole that is going to be difficult to fill during years the budget is tight. I want to be certain we are moving forward with a sustainable plan to address all our state's needs, including transportation."

SB5 and SJR5 were passed by the Senate on March 4 in a 28-2 vote. The proposed legislation will now move to the House to be voted on. Should the legislation be passed by the House, it would be placed on the November ballot for voter approval. If approved by voters, the dedication of funds as stipulated by the proposed legislation would begin in the 2018–19 biennium.

"I think the Legislature will get the $4 billion annually to fund transportation," Miller said. "It is going to be an interesting debate from the House side to the Senate side on trying to come together on the budget, but from a transportation perspective I think most of us are on board."