Highways GOVT 2306, Module 12 NOTE: To change images on this slide, select a picture and delete it. Then click the Insert Picture icon in the placeholder to insert your own image. Highways GOVT 2306, Module 12

Good Roads Amendment The Dedicated Highway Fund is a constitutionally earmarked account containing money set aside for building, maintaining, and policing state highways. The amendment specifies that three-fourths of the motor fuels and lubricants tax be set aside for the construction, policing, and maintenance of state highways.

Inadequate funding Although gasoline tax revenues have been rising because the number of cars on the road has been increasing steadily, gasoline tax revenues have not kept up with the cost of highway construction, especially the cost of building freeways in urban centers. The gasoline tax rate of 20 cents per gallon is now only worth 12 cents per gallon on an inflation adjusted basis.

Pay as You Go No More For many years, Texas funded highways on a pay-as-you go basis. That approach became inadequate as the cost of road construction and repair increased, the number of miles of state highways grew, and the money generated by the gasoline tax stagnated. The legislature addressed the issue in 2003 by proposing a constitutional amendment to allow TXDOT to sell bonds to be repaid from the state highway fund. The voters approved an amendment to allow TXDOT to borrow $6 billion. That borrowing authority is now exhausted.

Toll Roads State officials have turned to toll roads to address the state’s transportation needs. The advantage of toll roads is that they provide funding without raising taxes.

Opposition Nonetheless, public opposition to toll roads has been building, especially to toll roads built by private companies that may not be accountable to the public interest. Texas residents also complain about proposals to convert formerly free roads into toll roads.

Not Enough Money TXDOT now has only enough money to do minimal maintenance on roads and highways. There is no money for construction. Agency officials say they need an additional $4-5 billion annually. In 2013, the legislature responded with $900 million in additional funding, most of which was earmarked for South Texas where oilfield activity is tearing up the roads. In 2014, voters approved a constitutional amendment to allow the legislature to spend as much as $1.7 billion more annually from the Rainy Day Fund. TXDOT officials plan to return some roads in West and South Texas to gravel because it is cheaper to maintain than asphalt.

What You Have Learned What is the Good Roads Amendment? Why is state highway funding no longer adequate to meet the state’s needs? How has the legislature and TXDOT responded to the funding shortfall?