1. Proposition 1 Formula Distribution Proposal for FY 2015 PRELIMINARY CONCEPT PROPOSITION 1 FORMULA DISTRIBUTION PROPOSAL FOR FY 2015 TxDOT/Stakeholder Working Group

2. Proposition 1 Formula Distribution Proposal for FY 2015 Proposed Proposition 1 Funding Distribution Assumptions:  $1.4 billion total funding in FY 2015  All funds must be formula allocated  All districts and MPOs will receive some funding 2 Basic Tenants of Distribution Approach:  Funds should be used to address state’s four goals: – Safety – Maintenance – Congestion – Connectivity  Funds should be distributed in proportion to state’s $5 billion in additional annual funding needs – $3 billion for Congestion/Connectivity – $1 billion for Maintenance – $1 billion for Energy Impacts  Target initial projects that can proceed in FY 2015 DRAFT Preliminary Concept

3. Proposition 1 Formula Distribution Proposal for FY 2015 Preliminary Proposal  60% (3/5ths) of the funds to be distributed for Congestion/Connectivity – Portion to MPOs using Category 2 Formula – Portion to Regional Corridors using Category 11 Formula and aggregated by TxDOT Regions  20% (1/5th) of the funds to be distributed to TxDOT Districts for Maintenance Needs using Category 1 Formula  20% (1/5th) of the funds to be distributed for TxDOT Districts for Energy Impacts using an Energy Sector formula established in HB 1025/SB 1747 3 DRAFT Preliminary Concept

4. Proposition 1 Formula Distribution Proposal for FY 2015 60% (3/5ths) of the funds to be distributed for Congestion/Connectivity Portion to MPOs using Category 2 Formula  Distributed to Metropolitan Planning Organizations (MPOs) using the Category 2 Formula published in the 2015 Unified Transportation Program (UTP) that considers factors such as: ―Total amount of travel by cars and trucks (vehicle miles of travel) ―Population (total and % below poverty level) ―Mileage of state highway system ―Congestion ―Crashes  Category Allocates 87% to Large MPOs (TMAs) and 13% to Small MPOs (non-TMAs)  Projects selected and ranked by MPOs in consultation with local TxDOT districts, who may recommend project priorities 4 DRAFT Preliminary Concept

5. Proposition 1 Formula Distribution Proposal for FY 2015 60% (3/5ths) of the funds to be distributed for Congestion/Connectivity Portion distributed for Regional Corridors  Based on Category 11 District Discretionary formula published in the 2015 Unified Transportation Program with funds being aggregated by TxDOT Region.  Distribution in Category 4 of the UTP by region based on total amount of travel by cars and trucks and highway system mileage  Projects to be ranked and selected by Commission with goal of improving regional connectivity along strategic corridors in rural areas of the state 5 RegionDistricts South Austin, Corpus Christi, Laredo, Pharr, San Antonio, Yoakum North Atlanta, Brownwood, Dallas, Fort Worth, Paris, Tyler, Waco, Wichita Falls East Beaumont, Bryan, Houston, Lufkin West Abilene, Childress, El Paso, Lubbock, Odessa, San Angelo DRAFT Preliminary Concept

6. Proposition 1 Formula Distribution Proposal for FY 2015 20% (1/5th) of the funds for Maintenance Needs  $280 million to be distributed to TxDOT Districts for Maintenance Needs using Category 1 formula published in the 2015 Unified Transportation Program (UTP) that considers factors such as: ―Total amount of travel by cars and trucks (vehicle miles of travel) ―Pavement condition scores ―Mileage of state highway system ―Bridges  Commission will distribute funds within Category 1 of the UTP  Projects to be ranked and selected by TxDOT Maintenance Division and Districts 6 DRAFT Preliminary Concept

7. Proposition 1 Formula Distribution Proposal for FY 2015 20% (1/5th) of the funds for Energy Impacts  $280 million to be distributed to Energy Sector regions to address impacts of increased oil and gas production following the formula established in HB 1025/SB 1747 that considers the following factors: ―Safety ―Roadway Conditions ―Roadway Characteristics ―Traffic/Trucks/Oversize Permits  Commission will distribute funds within Category 12 of the UTP  Projects to be ranked and selected by TxDOT Districts in consultation with TxDOT Maintenance and Bridge Divisions.  Goals include: ―Enhancing bridge and roadway safety in energy impacted areas ―Improving congestion due to energy related activities 7 DRAFT Preliminary Concept

8. Proposition 1 Formula Distribution Proposal for FY 2015 8 Questions?