Statewide, Federal Funding Shortfalls
Contributing Factors, Implications

Progress North Texas 2010

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Recent Success, Remaining
Challenges >>>


Planning Transportation for 12 Counties >>>


Statewide, Federal Funding Shortfalls


Air Quality Improving, More Work Needed >>>


Partnerships Keep Projects Moving
Forward >>>

The majority of transportation improvements are funded with local funds, specifically sales tax, toll fees and property tax revenues. About 30 percent of transportation improvements are funded by federal and state fuel taxes drivers pay when they fill up their tanks.

The state charges a 20-cent-per-gallon gas tax (with 5 cents going to education), while the federal government charges 18.4 cents per gallon. Diesel fuel is taxed at 20 cents per gallon by the state and 24.4 cents per gallon by the federal government. The rates have remained the same since the early 1990s.

Since then, the region’s population has soared, requiring more transportation projects to be built to meet demand. And cars and trucks are also becoming more efficient, requiring less fuel than just a few years ago. There are air quality benefits to improved fuel efficiency, but funding diminishes when people are buying less fuel.

The state and region face multibillion-dollar shortfalls over the next 20 to 25 years, yet transportation needs must still be met. The state and region continue to grow rapidly, despite the recession. Dallas-Fort Worth is still growing by 1 million people per decade.

North Texas leaders face many challenges to ensure the quality of life that drew people here is enhanced. Transportation is a significant factor influencing how satisfied people are with their lives.

But the more people who move to the region, the greater the stress is on the existing transportation infrastructure.

 

Methods to Fund D-FW Transportation Needs   North Texas leaders, with significant input from the public, must determine how to meet the transportation needs of the area in a time of scarce resources.

In recent years, the decline in revenue has meant more involvement by the North Texas Tollway Authority and more Texas Department of Transportation public-private partnerships.

Partnerships involving NTTA, TxDOT and NCTCOG have helped advance projects that have been planned for years.

North Texas is one of the few regions with the money to build projects, thanks in part to the $3.2 billion it received from NTTA for the right to build and operate State Highway 121 in Collin and Denton counties.

But to provide cities and counties in North Texas with the necessary long-term benefits, the region needs steady income streams as it looks to complete its multibillion-dollar plans.
 

Preserving Quality of Life for North Texas >>>

Transit Increasing Accessibility,
Reliability >>>

Economic Recovery Funds Building Transportation
Legacy >>>


Continue the
Conversation — Your Opinion Counts >>>


The increased efficiency of vehicles is requiring a different approach to funding the region's infrastructure. As this chart shows, over time, drivers will pay less in gas taxes as gas mileage improves. Assuming the price of fuel remains the same, drivers will still pay less overall for fuel even if the gas tax is indexed to inflation.

traffic
  Indexing Gas Tax to Fuel Efficiency
     
Russell Laughlin First Person: Russell Laughlin
Senior Vice President, Hillwood Properties

How does transportation impact your business and employees?
Russell Laughlin says
more coordination is
necessary to address
transportation needs.

Every facet of our business is related to the quality of our transportation infrastructure; transportation and economic growth are inextricably linked.


An effective multimodal transportation system, encompassing air, rail and roads, is the foundation for the efficient delivery of goods, services and people, as well as job creation and overall economic growth and vitality.

However, as investments in transportation maintenance decline, roads and bridges will fail and plans for new roads and transit to expand capacity will have to be abandoned, which will have significant repercussions on our region’s economic growth. Expanding or relocating companies will look outside the state where there is less congestion and a higher level of dependability for the delivery of goods, services and people. We cannot afford to lose companies, or talented employees, to congestion. At AllianceTexas, this will jeopardize the $33.8 billion economic impact generated by the more than 200 companies and 28,000 employees that move in and out of our region.


How can these challenges be addressed?

These challenges cannot be addressed by maintaining the status quo. We must be smarter in facing the transportation crisis. We need greater coordination at the state and local levels to develop a transportation plan, along with next-generation transportation funding, that will address all of our state, regional and local needs. Without a plan and new sources of revenue, the transportation problem will not be solved. We need to evaluate funding levels in all areas of government and find existing revenue to invest in transportation, which generates multiple returns to the state and local governments.

There are only two options left: 1. maintain our current funding level and accept declining business enterprise investment, or (2) identify new and increasing funding to meet our needs. Transportation investments are not a “one-time-and-done” proposition; investments must be aligned with growing needs, just as with any business.


What's Next: Mobility 2035


Regional planners are working with the public to determine what North Texas will look like in 25 years.

Mobility 2035 will outline transportation options necessary to ensure the region maintains its edge economically and continues to offer residents a desirable quality of life.

The plan will continue the region’s commitment to finding multimodal solutions to the mobility challenges faced every day. NCTCOG must also balance the desires of residents for improvements with the reality that funding will be limited.

Mobility 2035 is required to be financially constrained, which means the projects and programs it includes can be afforded based on current revenue projections. Roadway and rail expansions will figure prominently in the plan. But environmental awareness and other air quality concerns will also thrust sustainable development into the limelight. With the help of the public, transportation planners will continue working toward recommendations for Mobility 2035 through the end of the year.

Public comments will be accepted throughout the process, ensuring the region’s next long-range transportation plan accurately reflects the wishes of people using the system the most. The Regional Transportation Council is expected to take action in 2011.

Innovative Finance at Work


Innovative financing at work - allocation of funds from SH 121 $3.2 billion upfront payment

With the $3.2 billion upfront payment the region received from the North Texas Tollway Authority for the right to build and operate State Highway 121 in Collin and Denton counties, regional
policymakers are able to allocate more money
for construction and maintenance of non-tolled projects throughout the area.

  List of projects begun in 2009


North Texas has been able to use innovative financing to advance projects. Above is a list of projects begun in 2009.

The contents of this report reflect the views of the authors who are responsible for the opinions, findings, and conclusions presented herein. The contents do not necessarily reflect the views or policies of the Federal Highway Administration, the Federal Transit Administration or the Texas Department of Transportation. This document was prepared in cooperation with the Texas Department of Transportation and the U.S. Department of Trasnportation, Federal Highway Administration and Federal Transit Administration.