The first chapter of the Cost of Doing Nothing resource book summarizes the basics of transportation funding issues, as well as a list of quick facts regarding their effect on Texas and the average Texan consumer. Here are some major highlights from the Chapter:
Solution: Texas needs a minimum of
$6 billion a year for construction and maintenance to stay competitive.
Problem: Texas maintains adequate funding levels until 2014, then estimates fall to $2.8 billion and continue to fall. This funding level will devastate your road quality and travel times.
Reasons: This is more complicated than balancing a checkbook. The major elements are enumerated below.
- Gas taxes were last raised 20 years ago. It’s not sufficient, and is becoming less sufficient every day. Considering inflation, we have about half the buying power as we did 20 years ago, with about nine million more Texans.
- Debt and Long-Term Obligations cost $1.3 billion annually. With insufficient revenue and no political will to raise it, the legislature turned to the bond market to find new money. Every bonding option is now exhausted, leaving a debt service balance of $15.2 billion.
- Diversions cost another $700 million annually: Again, with no political will to raise revenue, the legislature transfers gas tax revenues out of the Highway Trust Fund to pay for other state services, with a total price tag of $10B and counting.
Bottom Line: Failing to pay for infrastructure needs will cost the state an extraordinary amount of money. The longer it takes to raise funding, the more it will cost each Texas household in wasted time, increased vehicle maintenance needs, wasted gas, and accelerated tire wear.