CATC Mobility Headlines

The Central Texas Regional Mobility Authority (CTRMA) has chosen JPMorganChase as its financial partner on the outstanding toll road projects. CTRMA expects to develop a combined public/private financing package for under 6%. As construction costs are projected to increase by 10-12%, moving forward expeditiously on these projects should be a net gain financially, as well as as for Central Texas mobility. Financing will be comprised of non-concession, non-privatized lending of public and private funds supported solely by revenue from tolls. Details regarding which roads roads get built and when must still be worked out , but it does portend well for getting things back on track and placing Central Texas on the cutting edge of self-sustaining local transportation funding.

In a letter sent yesterday, Texas legislators urged TXDOT to borrow $1.5 billion by bonding gas tax revenues as a short-term solution to get road construction projects moving again. (The Legislature authorized TxDOT to borrow up to $6 billion against the gas tax and the agency has issued $2.9 billion to date). In return, legislators promise to cut back gas tax diversions on non-roadway expenditures. The letter was signed by Lt. Gov. David Dewhurst, House Speaker Tom Craddick, Senate Finance Chairman Steve Ogden and House Appropriations Chairman Warren Chisum.

TxDOT’s response was to demur to the Governor, whose response was less than enthusiastic. A Perry spokesman said the Governor was looking for long-term, not stop-gap, solutions.

Legislators suggest TxDOT borrow money for projects

Borrow more for roads, legislators urge transportation department Austin American-Statesman

Dewhurst: Go forth and borrow Austin American-Statesman

The Governor’s Business Council released a report last month on how best to fund Texas highway needs.  The Austin American-Statesman’s editorial board weighed in on the Council’s recommendation to raise the gasoline tax by declaring it deserving of serious study by the Legislature.

The Statesman board maintains that even if a higher gasoline tax doesn’t eliminate the need for tolls, it could at least reduce the number of tolled roads or allow lower tolls and recommended the legislators approve an increase to make up for the loss of value to inflation.

The public has indicated support for requiring auto manufacturers to build higher mileage cars and trucks, but the auto industry and its labor union supporters have blocked efforts to do so in both Democratic and Republican administrations.
Raising gasoline tax is a good idea, even if we still need toll roads - Austin American-Statesman
November 2006 study by the Governor’s Business Council

With TXDOT budget cuts trickling down to the local levels, Austin District Engineer Bob Daigh predicts that the district could rely on the Central Texas Regional Mobility Authority (CTRMA) to pick up the slack.

The Austin District’s right-of-way budget has been cut in half and the consultant budget was decreased by 57%. As of February, added capacity projects will be halted through the end of the fiscal year. Worse news: budget reductions could remain in place through 2009.

To help ease the burden, the Austin District is negotiating with the CTRMA to begin design work on projects that the District no longer has the budget for, including five toll projects approved in the CAMPO 2030 Plan and MoPac managed express lanes.

Texas voters approved Proposition 12 by 63%, paving the way reducing the state’s multi-billion dollar transportation shortfalls.   The constitutional amendment allows the state to issue $5 billion in bonds to fund road construction and maintenance.
The Texas Legislature must now approve the authorizing legislation before the bonds can be issued.

SJR 64 

House Research Organization Report on SJR 64

The City of San Marcos will take over pass-through financing agreement from Hays County for improvements and expansion of FM 1626 and FM 110. Hays County Commissioners had approved the pass-through agreement in 2006, but the bond proposal package failed to pass muster with Hays County voters in May 2007.

Estimated cost for both projects is $153 million; under the terms of the agreement the Texas Department of Transportation will reimburse $133 million based on traffic estimates on the new road sections.

Hays County Road improvements move one step closer - Austin Business Journal

A report from the Heritage Foundation Transportation and Smart Growth division reveals that Texas has been the greatest overall loser. On average for the past fifty years, Texas has received on average less than $0.80 per dollar submitted to the highway trust fund.

While recent years have seen a slight improvement over that average, Texas still only received less than $0.84 on the dollar in 2005.

Allocations to the states are based on a formula that attempts to measure need based on qualitative measures, such as miles of road and number of licensed drivers, resulting in the transfer billions of dol­lars from states in the South and the Midwest to the Northeast, the Mountain West, and Alaska.

Ronald Utt, the report’s author, noted that a “perverse consequence of the donor- donee misallocation is that most states on the losing end are experiencing above-average population growth rates and thus have a greater need to build new roads because of the increasing numbers of motorists. By contrast, winner states are generally experiencing below-average population growth and thus need fewer new roads.

Between 2000 and 2006, the U.S. population grew 6.3 percent, while among donor states, Texas’s population increased by 12.9 percent, South Carolina experienced a 7.7 percent increase, and Georgia’s population increased by 14.4 percent.”

Gov. Rick Perry signed SB 792, the only legislation significantly affecting toll road policy passed in the 80th Legislative Session. The bill places a two-year moratorium on comprehensive development agreements (CDAs) with private companies.

The bill’s direct effect on Central Texas is that it prevents TXDOT from being able to sell the Central Texas Turnpike Project tollroads (SH 130, SH 45, and Loop 1N) to a private entity. For additional details on the bill, see the Governor’s press release.

The second Distinguished Transportation Speaker Series (DTSS) will be held May 4 at 11:30 AM at the Hyatt Regency in Austin at 11:30 AM. The Distinguished Transportation Speaker Series’ objective is to provide top notch speakers to educate the regional business, community and political leadership though a series of lunches. Our first luncheon in this series, featuring noted congestion expert Alan Pisarski in October 2006, was well-attended and received.

The second event in this series will focus on public-private investment in transportation infrastructure. The event’s main speaker will be Leonard Gilroy, Senior Policy Analyst at the Reason Foundation and a nationally recognized expert on public-private partnerships.

Gilroy is the managing editor of Privatization Watch, a newsletter on privatization, and is the editor of the Annual Privatization Report, which examines trends and chronicles the experiences of local, state, and federal governments in bringing competition to public services. His articles have been featured in The Wall Street Journal, The Weekly Standard, Washington Times, Houston Chronicle, Atlanta Journal-Constitution, Arizona Republic, San Francisco Examiner, and Rocky Mountain News.

Gilroy’s presentation will be followed by a panel discussion of local and state leaders weighing in on the issue. We have invited Texas State Senators John Carona and Robert Nichols to participate on this panel. We’ll have additional information on the panel’s makeup soon.

The luncheon will be from 11:30 AM – 1:00 PM at the Hyatt Regency in Austin (208 Barton Springs Road) and the cost is $40 per person. Seats are limited so please RSVP by May 1 to catc@catransco.org or 512-587.6625. Cash or checks will be accepted at the door.