Texas Transportation Funding State Senator Robert Nichols

What is the problem with transportation funding?What is the problem with transportation funding? What do we need to focus on between now and November 2014?What do we need to focus on between now and November 2014? What do we need to do next session?What do we need to do next session?

Traditional Revenue Sources State Motor Fuel Tax Federal Motor Fuel Tax Vehicle Registration Fees

Texas Fleet Fuel Efficiency History and Future MPG Personal vehicles Commercial vehicles Forecast

The Cost of Inflation Purchasing Power Fuel Tax Receipts

Transportation Funding Maintenance Construction

Transportation Funding Maintenance Construction Rehab ( Overhaul existing system ) New capacity

Transportation Funding Maintenance Construction Rehab ( Overhaul existing system ) New capacity Preservation

$ Time Preservation

$ Time Preservation Traditional Funding

$ Time Preservation Traditional Funding New Capacity

Preservation New Capacity

Reduced Emphasis on Transportation In 1960, one third of the state budget went for transportation. Today, it is closer to nine percent. ‘149% ’6033%

One Time Funding Sources 2001 Texas Mobility Fund ($6.9 Billion debt)2001 Texas Mobility Fund ($6.9 Billion debt) 2003 Proposition 14 ($6 Billion debt)2003 Proposition 14 ($6 Billion debt) 2007 Proposition 12 ($5 Billion debt)2007 Proposition 12 ($5 Billion debt) 2008 NTTA Payment on SH 121 ($3.2 Billion debt)2008 NTTA Payment on SH 121 ($3.2 Billion debt) 2009 Federal Stimulus Dollars ($2.6 Billion)2009 Federal Stimulus Dollars ($2.6 Billion) Also, $1.9 Billion in outstanding pass through debtAlso, $1.9 Billion in outstanding pass through debt Grand Total of $25.6 Billion in one time funding and over $23 Billion in debtGrand Total of $25.6 Billion in one time funding and over $23 Billion in debt

Solutions?

Definitions Severance Tax- tax paid on the production value of oil and gas extracted from the ground

Definitions Severance Tax- tax paid on the production value of oil and gas extracted from the ground Economic Stabilization Fund (ESF)- state savings account created by the voters in Commonly referred to as the “Rainy Day Fund”, the ESF is funded with the oil and gas severance tax through an annual deposit.

On ballot November 2014 Immediate effect Does not take money out of the rainy day fund. Does not solve the entire transportation funding problem but is a big step in the right direction.

Sales Tax and Registration by biennium Revenue (in billions) Vehicle Sales Tax Registration Fees

QUESTIONS?

Texas Transportation Funding State Senator Robert Nichols