Get Out the Vote 2015 Campaign in support of Transportation Funding Bill - Texas Proposition 7 on the November 3, 2015 Ballot

Transportation – A Crisis Highway investment required to maintain the 2010 level is $10.8 billion annually. TXDOT estimated that there is a projected average annual gap between expected and needed revenue of $4 billion. (Not including an additional $1 billion annually to address increase in the heavy truck traffic needed for energy development.) “Transportation Funding, Understanding Transportation Funding in Texas, 2014 – 2015 Edition”, Texas Department of Transportation

History In 1960, one third of the State budget went for transportation. Today, it is closer to nine percent. TexASCE.org/TXprops % 20149%

History Since 2004, costs for maintenance and rehab have exceeded all of TXDOT’s traditional funding. TexASCE.org/TXprops Preservation (Maintenance + Rehab) New Capacity By 2004, the cost of preservation consumed all traditional funding available to TxDOT Traditional Funding 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

One-Time Funding to Fill Shortfalls The Legislature realized there was not enough funding for needed new capacity improvements. They responded with one-time injections of funding into the State Highway Fund. TexASCE.org/TXprops  2001 Texas Mobility Fund ($6.9 Billion debt)  2003 Proposition 14 ($6 Billion debt)  2007 Proposition 12 ($5 Billion debt)  2008 NTTA Payment on SH 121 ($3.2 Billion debt)  2009 Federal Stimulus Dollars ($2.6 Billion)  Also, $1.9 Billion in outstanding pass through debt  Grand Total of $25.6 Billion in one-time funding  Over $23 Billion in debt

TxDOT Highway Contract Awards – June 2014 Source: Future Funding Presentation, James M. Bass, TxDOT presented June 22, 2015

Step 1 = Proposition 1 TexASCE.org/TXprops "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.“ Takes half of what would go to the Rainy Day Fund above the $1.13 Billion floor and puts it into the Highway Fund. Relevant Bills:SJR 1 and HB 1

TxDOT Highway Contract Awards – June 2015 Source: Future Funding Presentation, James M. Bass, TxDOT presented June 22, 2015

Step 2 = Proposition 7 Constitutional amendment drafted by legislators in the 84th legislative session and authorized by SJR 5, will appear on the November 2015 statewide ballot. Authorizes a new, stable source of funding for transportation in Texas, dedicated to the construction and maintenance of roads Upon passage, Prop 7 dedicates a portion of the general sales and use tax and the motor vehicle sales tax to the Highway Fund TexASCE.org/TXprops

TxDOT Highway Contract Awards -Future Source: Future Funding Presentation, James M. Bass, TxDOT presented June 22, 2015

Proposition 7 Language TexASCE.org/TXprops "The constitutional amendment dedicating certain sales and use tax revenue and motor vehicle sales, use, and rental tax revenue to the state highway fund to provide funding for nontolled roads and the reduction of certain transportation-related debt.” Vote YES or NO on the above statement

Frequently Asked Questions What can the money be used for?  Construction, maintenance, and acquiring right of ways for public roads; or  To repay the principal and interest on general obligation bonds issued by TxDOT  Prop 7 cannot be used to pay for toll roads It is  Not a new tax  Not raising fees  Not additional debt or bond capacity TexASCE.org/TXprops Where does the money come from?  $2.5 billion would be deposited into the state Highway Fund from state sales tax revenues above the first $28 billion dollars each year.  35% of the net revenue derived from the motor vehicle sales and rental tax above the first $5 billion dollars each year would be deposited into the state Highway Fund. Where does the money come from?  $2.5 billion would be deposited into the state Highway Fund from state sales tax revenues above the first $28 billion dollars each year.  35% of the net revenue derived from the motor vehicle sales and rental tax above the first $5 billion dollars each year would be deposited into the state Highway Fund.

Proposition 7 Campaign Strategy Get Out The Vote (GOTV) Information Graphics & Social Media Outreach Earned Media (Press Releases, Opinion Editorials & Media Days) Person-to-Person Contact Partnerships and Alliances TO SUCCEED, WE’LL NEED EACH BRANCH’S PARTICIPATION Get Out The Vote (GOTV) Information Graphics & Social Media Outreach Earned Media (Press Releases, Opinion Editorials & Media Days) Person-to-Person Contact Partnerships and Alliances TO SUCCEED, WE’LL NEED EACH BRANCH’S PARTICIPATION TexASCE.org/TXprops

Campaign Partners  Move Texas Forward MoveTexasForward.com  Move Texas Forward MoveTexasForward.com

Information Resources  Texas Section website TexASCE.org/txprops   Opinion-Editorial to your local newspapers  Infrastructure Report Card Infrastructure Report Card  Informational Graphic Poster Informational Graphic Poster  Texas Section website TexASCE.org/txprops   Opinion-Editorial to your local newspapers  Infrastructure Report Card Infrastructure Report Card  Informational Graphic Poster Informational Graphic Poster

Please support Proposition 7. Would you like to get involved? Contact: Roman D. Grijalva PE Committee on Public Relations and Professional Image (VP-Professional) Phone: J. MacDonald (Mac) Ruffeno PE Government Affairs Committee Phone: (713) TexASCE.org/TXprops