Newly formed corporation could divert Harris County toll road revenue to non-mobility projects

The three Democratic members of the court who supported the motion—Harris County Judge Lina Hidalgo, and Precinct 1 and 2 commissioners Rodney Ellis and Adrian Garcia—said they saw value in the added flexibility in how that money can now be spent. While money collected by the toll road authority can only be spent on debt and transportation infrastructure, money in the LGC can be spent on a wider variety of projects, including flood control projects and health care needs.

"I favor some flexibility on the issues that we deal with in this county," Ellis said. "I think in the midst of the worst health challenge in 100 years and probably the worst economic challenges since the Great Depression, we can’t solve all our problems, but I think we should not handcuff ourselves."

Meanwhile, Garcia called on commissioners to begin the process of determining what infrastructure needs exist within the county to determine how the money should be allocated.

The motion was opposed by the two Republican members of the court, Precinct 3 Commissioner Steve Radack and Precinct 4 Commissioner Jack Cagle. Cagle said he did not see a need to rush the decision on what officials believe is the largest financial transaction in the history of the county, instead calling for a second opinion and for more public input.

Any funds not sent over to the county in franchise fees would remain with the authority. The portion of toll road revenue that goes to each county precinct for mobility projects each year will also not be decreased, Berry said.

The county will refinance between $2.7 billion-$2.8 billion in toll road debt, Berry said. He said the move to establish the LGC will not likely trigger a downgrade in the toll road authority's bond rating, though he cautioned that a downgrade still could eventually come as a result of fewer people using toll roads during the pandemic.

"All toll roads right now are under some negative pressure," Berry said at the Sept. 15 meeting. "If commissioners court goes down that path, it is unlikely that would trigger a downgrade, but I can’t promise no downgrade because we’re in middle of pandemic where folks are driving less."

Hidalgo, who cast the deciding vote on the measure, said she thought the move would help the county "maximize every dollar" while also taking advantage of the low interest rates.

"We have time to develop priorities," she said. "Right now, the proposal is that we bring this additional resource to the community. As far as I am concerned, if there is an additional resource that we're not maximizing ... then we should do it."