PROPOSITION 1 AND SELECTED

TRANSPORTATION PROJECTS IN TARRANT COUNTY

SOUTHEAST TARRANT TRANSPORTATION PARTNERSHIPOCTOBER 8, 2014

WHERE DOES FUNDING COME FROM?THE HIGHWAY TRUST FUND

Established in 1956

Functions as an accounting mechanism • Cash in: excise tax on motor fuels, trucks, tires• Cash out: spending on highway and transit programs

Made of two accounts• Highways• Mass Transit

The future status of the HTF is uncertain• Changes in oil prices, the economy, and fuel efficiency

all have major impacts on the HTF• Since September 2008, Congress infused the HTF with

tens of billions to keep the account solvent

TRANSPORTATION SYSTEM FUNDING BASICS

TxDOT BudgetPlan, Maintain & Build

Transportation Projects

Point of Collection*

Federal Highway Trust Fund

Highway Account Mass Transit Account

1/10 cent per gallon to EPA L.U.S.T. Trust Fund

• 1% General Fund• Refunds for non-road use• $7.3 million to County & Road District Fund • 25% Education

Diversions: Round 1

Diversions: Round 2

Other State Agencies

Portion Returned to Texas

Portion Sent to Other States

REFUNDED Less Than Put In

Federal Motor Fuel Tax Rates (Cents per Gallon)Gas/gasohol: 18.4Diesel: 24.4

State Motor Fuel Tax Rates (Cents per Gallon)Gas/gasohol: 20.0

Diesel: 20.0

*The Federal Government also imposes taxes on large trucks/trailers, truck tires, and usage fees for large trucks.

Fund 006

DPS

FUNDING SHORTFALLS

• Transportation funding shortfalls exist across all levels of government (federal, state, regional, local)

• Innovation and collaboration have become very important

• Traditional funding sources are unreliable Shortfalls create project delays Priorities are forced to change

• Highlights need to pursue alternative, innovative funding options

Toll roads Public-private partnerships Managed (Express) Lanes

PROPOSITION 1

Prop 1 will appear on the November 4, 2014, ballot for voter approval

Proposed language:“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.”

ELIGIBILITY FOR PROP 1 FUNDING

Eligible projects include: constructing, maintaining, and acquiring rights-of-way for public roadways other than toll roads

Not eligible:• Toll roads or managed toll lanes • Programs (e.g., ITS, safety, signals, bicycle/pedestrian)• Transit projects

GENERAL PRINCIPLES OF PROP 1

• Focus on large projects• Focus on projects on the interstate highway system,

then other on-system projects• Few, if any, off-system projects• Seeking very traditional, roadway projects• Projects should be ready for construction “soon,”

though not necessarily “shovel-ready”• Projects must be in the current mobility plan• While maintenance projects are eligible, they should

not be a focus (except for in energy-producing areas)

PROP 1 – ANTICIPATED FUNDING AMOUNTS

• Anticipate $1.4 - $1.7 billion available statewide in first year

• Dallas-Fort Worth region’s share would be approximately $200-300 million (in first year)

• Annual allocations in the future, subject to legislative committee review of Rainy Day fund

1 2 3 4 5 6 7 8$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

Annual Severance Tax Allocation(Prior to 1988)

Total Oil and Gas Severance Tax Collected Per Year

Billion

s

General Revenue School Fund

25 Percent75 Percent

Source: Senator Robert Nichols, Chairman, Senate Transportation Committee

1 2 3 4 5 6 7 8$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

Annual Severance Tax Allocation(Current Law)

Total Oil and Gas Severance Tax Collected Per Year

Billi

ons

Rainy Day Fund

General Revenue

School Fund

25 Percent75 Percent

Source: Senator Robert Nichols, Chairman, Senate Transportation Committee

1 2 3 4 5 6 7 8$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

Annual Severance Tax Allocation(Proposed Amendment)

Total Oil and Gas Severance Tax Collected Per Year

Billi

ons

Rainy Day Fund

General Revenue

School Fund

25 Percent

Transportation Fund

75 Percent

Source: Senator Robert Nichols, Chairman, Senate Transportation Committee

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MAJOR ROADWAY IMPROVEMENTSIN SE TARRANT COUNTY

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4

15

16

17

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QUESTIONS?

Christie J. GottiSenior Program Manager

NCTCOG817/608-2338

cgotti@nctcog.org