AUSTIN, Texas — Gov. Rick Perry has given lawmakers a new task in the ongoing special session: fund transportation. And the legislators are ready with ideas.
Earlier this year transportation officials clamored that Texas will soon need an additional $4 billion per year to keep up with the cost of preventing highway congestion and the needs for road maintenance.
Lawmakers have advanced ideas about how to get that money to the state, which is growing by more than 1,000 people per day.
“Texas’ growing economy and population demand that we take action to address the growing pressure on the transportation network across the state,” Perry said in a news release Monday night. “As we enjoy the benefits of a booming economy, we have to build and maintain the roads to ensure we sustain both our economic success and our quality of life.”
State senators and representatives have a number of ideas on the table.
The House has proposed a swap. House Bill 41 from Rep. Joe Pickett, D-El Paso, would take oil and gas taxes going to general revenue, the pot of money that lawmakers have the most control over, and give that to education. Meanwhile, lawmakers would take the 25 percent of the motor fuel tax already going to education and give that to transportation.
Because the motor fuel tax is a more stable income source than the oil and gas severance taxes, the plan would give transportation officials a source of income they can count on, possibly as much as $800 million per year.
“By all means, this is not a fix for transportation, but this is an opportunity to at least help in that regard during the next two years and beyond,” said Rep. Drew Darby, R-San Angelo, a joint author of the bill.
As to whether public education would be getting a more volatile source of funding, Darby said the state is obligated to fund schools at certain level.
Lawmakers would need to make room in the budget to meet that obligation in the event that oil and gas severance taxes fall below benchmarks.
Darby said he liked the proposal because it would mean that the 20 cents in gas tax paid at the pump would go to roads and wouldn’t be diverted to education, even though that diversion is specified in the state constitution.
“It carries on the spirit of truth and budgeting and truth in taxation,” Darby said.
The plan requires passage of House Joint Resolution 16, which resolves that Texans vote in a general election to approve a constitutional amendment and allow for the change.
Meanwhile, in a high-profile move from Senate Transportation Committee Chairman Sen. Robert Nichols, R-Jacksonville, and Sen. Tommy Williams, R-The Woodlands, a constitutional amendment from Senate Joint Resolution 2 would divert future money headed to the Rainy Day Fund and give it to transportation funding. If approved, Texans would also vote on that amendment in a general election.
The Rainy Day Fund, properly called the Economic Stabilization Fund, is fueled with oil and gas taxes and was set to have about $11.8 billion by the end of the next two years.
Lawmakers have approved taking $2 billion for water and about another $2 billion for other needs such as ending deferrals to public education and paying for wildfire damages.
“This accomplishes (funding transportation) without taking money out of general revenue, without touching the schools or the school funding mechanisms, accomplishes without raising taxes or fees. It does not take any money out of the Rainy Day Fund,” Nichols has said. “The Rainy Day Fund continues to increase but not at as fast of a rate.”
Williams said the funding plan could bring in about $850 million per year in 2014 and 2015.
Previously, Perry had called the special session only to work on redistricting. Lawmakers have been busy with hearings around the state to hear about possible improvements to temporary maps already in place. The maps have been caught up in federal court on grounds that they disenfranchise minorities.
Perry added transportation infrastructure to the call about 6 p.m. Monday.
Williams said transportation funding was one of the disappointments of the regular session, which ended on Memorial Day.
Overall, transportation received an additional $850 million, and $450 million of that money is for roads damaged in areas that produce oil and gas from shale.
The Texas Department of Transportation budget for 2012-13 was $19.8 billion.
Darby had proposed a bill in the regular session to raise registration fees by about $30 per year to bring in around $700 million per year for transportation, but too many members and Perry stood against it. Darby said he may not bring that bill back.
“I don’t think there is enough time to build consensus for that proposal,” Darby said.
Lawmakers have two weeks left before the special session ends.
The Senate meets back at 1 p.m. today, and the Senate Finance Committee has scheduled a hearing for SJR 2 upon adjournment of the Senate. The House is scheduled to return Monday.
“We’ve got very little time remaining,” Darby said.
Earlier this year transportation officials clamored that Texas will soon need an additional $4 billion per year to keep up with the cost of preventing highway congestion and the needs for road maintenance.
Lawmakers have advanced ideas about how to get that money to the state, which is growing by more than 1,000 people per day.
“Texas’ growing economy and population demand that we take action to address the growing pressure on the transportation network across the state,” Perry said in a news release Monday night. “As we enjoy the benefits of a booming economy, we have to build and maintain the roads to ensure we sustain both our economic success and our quality of life.”
State senators and representatives have a number of ideas on the table.
The House has proposed a swap. House Bill 41 from Rep. Joe Pickett, D-El Paso, would take oil and gas taxes going to general revenue, the pot of money that lawmakers have the most control over, and give that to education. Meanwhile, lawmakers would take the 25 percent of the motor fuel tax already going to education and give that to transportation.
Because the motor fuel tax is a more stable income source than the oil and gas severance taxes, the plan would give transportation officials a source of income they can count on, possibly as much as $800 million per year.
“By all means, this is not a fix for transportation, but this is an opportunity to at least help in that regard during the next two years and beyond,” said Rep. Drew Darby, R-San Angelo, a joint author of the bill.
As to whether public education would be getting a more volatile source of funding, Darby said the state is obligated to fund schools at certain level.
Lawmakers would need to make room in the budget to meet that obligation in the event that oil and gas severance taxes fall below benchmarks.
Darby said he liked the proposal because it would mean that the 20 cents in gas tax paid at the pump would go to roads and wouldn’t be diverted to education, even though that diversion is specified in the state constitution.
“It carries on the spirit of truth and budgeting and truth in taxation,” Darby said.
The plan requires passage of House Joint Resolution 16, which resolves that Texans vote in a general election to approve a constitutional amendment and allow for the change.
Meanwhile, in a high-profile move from Senate Transportation Committee Chairman Sen. Robert Nichols, R-Jacksonville, and Sen. Tommy Williams, R-The Woodlands, a constitutional amendment from Senate Joint Resolution 2 would divert future money headed to the Rainy Day Fund and give it to transportation funding. If approved, Texans would also vote on that amendment in a general election.
The Rainy Day Fund, properly called the Economic Stabilization Fund, is fueled with oil and gas taxes and was set to have about $11.8 billion by the end of the next two years.
Lawmakers have approved taking $2 billion for water and about another $2 billion for other needs such as ending deferrals to public education and paying for wildfire damages.
“This accomplishes (funding transportation) without taking money out of general revenue, without touching the schools or the school funding mechanisms, accomplishes without raising taxes or fees. It does not take any money out of the Rainy Day Fund,” Nichols has said. “The Rainy Day Fund continues to increase but not at as fast of a rate.”
Williams said the funding plan could bring in about $850 million per year in 2014 and 2015.
Previously, Perry had called the special session only to work on redistricting. Lawmakers have been busy with hearings around the state to hear about possible improvements to temporary maps already in place. The maps have been caught up in federal court on grounds that they disenfranchise minorities.
Perry added transportation infrastructure to the call about 6 p.m. Monday.
Williams said transportation funding was one of the disappointments of the regular session, which ended on Memorial Day.
Overall, transportation received an additional $850 million, and $450 million of that money is for roads damaged in areas that produce oil and gas from shale.
The Texas Department of Transportation budget for 2012-13 was $19.8 billion.
Darby had proposed a bill in the regular session to raise registration fees by about $30 per year to bring in around $700 million per year for transportation, but too many members and Perry stood against it. Darby said he may not bring that bill back.
“I don’t think there is enough time to build consensus for that proposal,” Darby said.
Lawmakers have two weeks left before the special session ends.
The Senate meets back at 1 p.m. today, and the Senate Finance Committee has scheduled a hearing for SJR 2 upon adjournment of the Senate. The House is scheduled to return Monday.
“We’ve got very little time remaining,” Darby said.
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