1. Texas Transportation Funding State Senator Robert Nichols

2. Reduced Emphasis on Transportation In 1960, one third of the state budget went for transportation. FY 2016-17 is about 11%. ‘149% ’6033%

3. The Cost of Inflation ($ Millions)

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

5. $ Time Preservation

6. $ Time Preservation Traditional Funding

7. $ Time Preservation Traditional Funding New Capacity

9. One Time Funding Streams 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) Also, $1.9 Billion in outstanding pass through debtAlso, $1.9 Billion in outstanding pass through debt Grand Total of $23 Billion in debtGrand Total of $23 Billion in debt Reduction of ~ $1 billion / year in FY 16-17Reduction of ~ $1 billion / year in FY 16-17

10. Proposition 1, approved by the voters in November 2014 was a great step in the right direction.Proposition 1, approved by the voters in November 2014 was a great step in the right direction. $1.7 Billion to the state highway fund in the first year.$1.7 Billion to the state highway fund in the first year. Supported by 80% of the voters.Supported by 80% of the voters. Even with oil prices down, Comptroller still estimates ~ $1.2 billion / year in FY 2016-17Even with oil prices down, Comptroller still estimates ~ $1.2 billion / year in FY 2016-17

11. Transportation Funding Sources Should Be: 1. Predictable 2. Constitutionally Dedicated 3. Transportation Related 4. Independent of Fuel Source 5. Adjusts for Inflation

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

13. What Prop 7 Does: Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund.Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund.

14. What Prop 7 Does: Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund.Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund. Use of the sales tax will be limited to the construction and maintenance of non-tolled roads and bridges, and to pay off general revenue transportation related debt.Use of the sales tax will be limited to the construction and maintenance of non-tolled roads and bridges, and to pay off general revenue transportation related debt.

15. What Prop 7 Does: Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund.Proposes a constitutional amendment to annually dedicate a portion of the existing general sales tax and motor vehicle sales tax to the state highway fund. Use of the sales tax will be limited to the construction and maintenance of non-tolled roads and bridges, and to pay off general revenue transportation related debt.Use of the sales tax will be limited to the construction and maintenance of non-tolled roads and bridges, and to pay off general revenue transportation related debt. $2.5 billion in general sales tax that exceeds $28 billion would start in FY 2018. 35% of Motor Vehicle Sales Tax that exceeds $5 billion would start in FY 2020.$2.5 billion in general sales tax that exceeds $28 billion would start in FY 2018. 35% of Motor Vehicle Sales Tax that exceeds $5 billion would start in FY 2020.

16. Prop 7 Funding ($ Billions)

17. Transportation Funding Increases 2015 – 2029 ($ Billions)

18. Texas Transportation Funding State Senator Robert Nichols