Road funding proposal to go before voters in 2014

Link to article here.

Lt. Gov. David Dewhurst has lost his mind if he thinks his committee will come up with a 'conservative' approach to transportation funding. This same Senator, Tommy Williams, insisted they raid emergency funds to pay for a core function of government - roads - when the legislature had an $8 billion surplus going into the session!

State road funding method goes to voters in 2014
By Howard Roden
The Villager - Your Houston News
Wednesday, September 25, 2013

It wasn’t state lawmakers’ first method at infusing more money into the Texas transportation system, but by the end of a third special session, they had settled on the “politically acceptable” choice, state Sen. Robert Nichols, R-Jacksonville, said.

In August, both sides of the 83rd Legislature passed House Joint Resolution 1, a constitutional amendment that diverts a portion of the state’s oil and natural gas severance tax to roads and transportation infrastructure.

Texans will vote on the amendment in the 2014 November general election.

Gov. Rick Perry called a third special session in Austin specifically to resolve transportation funding. Increasing the state fuel tax, vehicle registration fees and car sales tax were rejected by lawmakers last session.

“They were not politically acceptable. The support wasn’t there,” said Nichols, who was in Conroe last week to meet with the media and some of his Montgomery County constituents. The Lake Conroe area is part of his Senate district.

The plan to capture some of the severance tax – estimated to be almost $850 million annually – was rejected at the end of the second special session.

However, experts said Texas needs an additional $4 billion in the state budget to maintain the current road networks statewide.

Since 1997, transportation funds have declined, due, in part, to the improved efficiency of motor vehicles, Nichols said.

“No longer is there money to to develop new projects and maintain the existing roads,” he said.

A decade ago, the state started borrowing money for transportation. Now, it is $20 billion in debt, Nichols said.

In approving the proposed constitutional amendment, the Legislature agreed to a plan that requires a baseline amount which sends 25 percent to education and the remaining 75 percent to general revenue.

Once oil and gas severance tax surpasses that baseline figure, the additional funds are divided between education (25 percent) and the Rainy Day fund and transportation (37.5 percent apiece), Nichols said.

The senator stressed that the constitutional amendment does not take money from the Rainy Day fund — it will continue to put money into it.

Should the fund slip below the baseline amount, the amendment requires all future transportation funds to be diverted back into the Rainy Day fund, Nichols said.

“I think it’s going to pass,” Nichols said of the amendment.

Nichols and state Sen. Tommy Williams, R-The Woodlands are not through with transportation. Williams was appointed chairman of the Senate Select Commission on Transportation Funding last week by Lt. Gov. David Dewhurst.

Nichols was appointed vice chairman to the committee.

The select committee is tasked with overseeing highway infrastructure improvements.

“Texans deserve the best roadways for their dollar, and I’m confident this team will bring a deliberate, innovative approach to the transportation challenges facing our state,” Dewhurst stated in a release. “With Sen. Williams leading the charge, I’m confident they’ll find an effective, conservative approach.”