Download - Texas Transportation Funding

Texas Transportation Funding

State Senator Robert Nichols

• What is the problem with transportation funding?

• What do we need to focus on between now and November 2014?

• What do we need to do next session?

Senator Robert Nichols

Traditional Revenue Sources

State Motor Fuel Tax

Federal Motor Fuel Tax

Vehicle Registration Fees


'90 '93 '96 '99 '02 '05 '08 '11 '14 '17 '20 '23 '26 '290

10

20

30

40

50

60

Texas Fleet Fuel EfficiencyHistory and Future

MPG

Personal vehicles

Commercial vehicles

Forecast


The Cost of Inflation

Purchasing Power

Fuel Tax Receipts

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

Gross State MFT Deposits to St Hwy FundPurchasing Power of State MFT Deposits

Fiscal Year


Transportation Funding

Maintenance Construction




Rehab( Overhaul existing

system )

New capacity




Rehab( Overhaul existing

system )

New capacity Preservation


$

Time

Preservation


$

Time

Preservation

Traditional Funding


$

Time

Preservation

Traditional Funding

New Capacity


1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5St

ate

Fuel

and

Reg

istr

atio

n Fe

e R

even

ue(in

bill

ions

)

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.

'21

'25

'29

'33

'37

'41

'45

'49

'53

'57

'61

'65

'69

'73

'77

'81

'85

'89

'93

'97

'01

'05

'09

'130

5

10

15

20

25

30

35

40

45

50

Perc

ent

‘149%

’6033%


One Time Funding Sources• 2001 Texas Mobility Fund ($6.9 Billion debt)

• 2003 Proposition 14 ($6 Billion debt)

• 2007 Proposition 12 ($5 Billion debt)

• 2008 NTTA Payment on SH 121 ($3.2 Billion debt)

• 2009 Federal Stimulus Dollars ($2.6 Billion)

• Also, $1.9 Billion in outstanding pass through debt

• Grand Total of $25.6 Billion in one time funding and over $23 Billion in debt


Solutions?Senator Robert Nichols

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


DefinitionsSeverance 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 1988. Commonly referred to as the “Rainy Day Fund”, the ESF is funded with the oil and gas severance tax through an annual deposit.


1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

2012

2015

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

$4,500.0

$5,000.0

Oil and Gas Severance Tax RevenueB

illio

nsSenator Robert Nichols

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

$4,500.0

$5,000.0 Oil and Gas Severance Tax RevenueBi

llion

s

General Revenue


$0.0

$500,000,000.0

$1,000,000,000.0

$1,500,000,000.0

$2,000,000,000.0

$2,500,000,000.0

$3,000,000,000.0 Transfers to Rainy Day Fund

1990 2000 20101995 2005


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


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)


Bill

ions

Rainy Day Fund

General Revenue

School Fund

25 Percent75 Percent


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)


Bill

ions

Rainy Day Fund

General Revenue

School Fund

25 Percent

Transportation Fund

75 Percent


• 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 Registrationby biennium

Rev

enue

(in

billi

ons)

Vehicle Sales Tax Registration Fees

90-91 92-93 94-95 96-97 98-99 00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-150

1

2

3

4

5

6

7

8


QUESTIONS?


Texas Transportation Funding

State Senator Robert Nichols

Download - Texas Transportation Funding

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