Texas Transportation Funding

State Senator Robert Nichols

Traditional Revenue Sources

State M

oto

r Fu

el Tax

Fed

eral Mo

tor F

uel Tax

Veh

icle Reg

istration

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

MP

G

Personal vehicles

Commercial vehicles

Forecast

The Cost of Inflation

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11900,000,000

1,200,000,000

1,500,000,000

1,800,000,000

2,100,000,000

2,400,000,000

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

Fiscal Year

Purchasing Power

Fuel Tax Receipts

Transportation Funding

maintenance construction

rehab( Overhaul existing

system ) new capacity

$

Time

Maintenance

and Rehab

$

Time

Maintenance

and Rehab

Traditional Funding

$

Time

Maintenance

and Rehab

Traditional Funding

New Capacity

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5S

tate

Fu

el a

nd

Reg

istr

atio

n F

ee R

even

ue

(in

bil

lio

ns)

Maintenance, Rehabilitation and Reconstruction

New Capacity

One Time Funding Streams• 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

Reduced Emphasis on Transportation '2

1

'25

'29

'33

'37

'41

'45

'49

'53

'57

'61

'65

'69

'73

'77

'81

'85

'89

'93

'97

'01

'05

'09

0

5

10

15

20

25

30

35

40

45

50Percent

In 1960, one third of the state budget went for transportation. Today, it is closer to seven percent.

’6033%

‘127%

‘12

Transportation Funding Sources for Texas Need to Be:

1. Predictable

2. Constitutionally Dedicated

3. Transportation Related

4. Independent of Fuel Source

5. Adjusts for Inflation

Sales Tax and Registrationby Biennium

Rev

enu

e (B

illi

on

s $)

90-91 92-93 94-95 96-97 98-99 00-01 02-03 04-05 06-07 08-09 10-11 12-130

1

2

3

4

5

6

7

8

Vehicle Sales Tax

Registration Fees

What This Proposal Does:

• Proposes a constitutional amendment which would dedicate the existing sales tax on new and used automobiles to the state highway fund.

What This Proposal Does:

• Proposes a constitutional amendment which would dedicate the existing sales tax on new and used automobiles to the state highway fund.

• Use of the sales tax will be limited to the uses of the state highway fund, and to pay off general revenue transportation related debt.

What This Proposal Does:

• Proposes a constitutional amendment which would dedicate the existing sales tax on new and used automobiles to the state highway fund.

• Use of the sales tax will be limited to the uses of the state highway fund, and to pay off general revenue transportation related debt.

• The enabling legislation for this amendment would incrementally dedicate the sales tax by 10% a year. The implementation would not begin until next biennium.

'14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '250

500

1,000

1,500

2,000

2,500

3,000

3,500

$0 $0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

Revenue from Vehicle Sales Tax and Prop 12 Debt Service

Debt Service Prop 12

MVST Revenue

Fiscal Year

Mil

lio

n $

0

500

1,000

1,500

2,000

2,500

$0 $0

-$11

$289

$589

$889

$1,189

$1,489

$1,789

$2,089

$2,389

$2,689

Revenue from Vehicles Sales Tax After Prop 12

MVST after Prop 12

Fiscal Year

Mil

lio

n $

‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘22 ‘14 ‘23 ‘24 ‘25‘14

-$11

Texas Transportation Funding

State Senator Robert Nichols