Texas voters sent a message to legislators last November on the need for transportation funding when Proposition 1 was passed with 80 percent approval, redirecting $1.7 billion from the Rainy Day Fund to the State Highway Fund. However, transportation officials were quick to remind lawmakers that Prop. 1 only addressed a fraction of the funding shortfall, and new measures are being considered this session to fill the gap.
The Texas Department of Transportation 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. To make up for the additional money still needed after Prop. 1, Lt. Gov. Dan Patrick called on the state Legislature to find ways to increase transportation funding.
The solutions with the best chances of passing through the Legislature this session are Senate Bill 5 and Senate Joint Resolution 5, which were authored by state Sen. Robert Nichols, R-Jacksonville, who heads the Senate Transportation Committee. Both bills were passed by the Texas Senate on March 4 and are now being debated in the House.
The proposed legislation would allocate the first $2.5 billion collected each year by the motor vehicle sales and rental tax to the general revenue fund, as it does under existing law, and the next $2.5 billion to the SHF. Additional revenue in excess of $5 billion would be split evenly between the two accounts.
If SB5 and SJR5 make it through both chambers, a measure would be placed on the November ballot. If approved by voters, the dedication of funds would begin in the 2018-19 biennium.
The funding plan is expected to generate about $2 billion a year for the SHF. Additional bills being considered include House Joint Resolution 13, which puts $3 billion in vehicle tax revenue directly into the SHF annually for 10 years.
State Sen. Rodney Ellis, D-Houston, voted against SB 5 and SJR 5. Ellis said even though transportation is an important issue that needs to be addressed, the proposed legislation would take funding away from other vital issues.
"I could not in good conscience support legislation that will restrict the ability of future Legislatures to meet our needs," he said. "We are creating a new multibillion dollar hole that is going to be difficult to fill during years the budget is tight."
The legislation has received support from Transportation Advocacy Group in Houston, an organization that supports funding for transportation infrastructure.
"Prop. 1 was a good start, but we knew at the time that it alone was not going to get the job done," said Jeff Collins, TAG Houston board member and co-chair on the Cy-Fair Houston Chamber of Commerce Transportation Committee. "These proposed bills this session provide a more sustainable solution for a problem we've already waited too long to address."
