By
2015, Texas may be all out of money to keep highway construction abreast of
population and job growth, according to Texas Department of Transportation CFO James
Bess, who describes the perilous fiscal status of his agency as “entering into
an era of uncertainty.” El Paso State Representative Joe Pickett echoes the
concerns of Bess. “People don’t believe there’s a crisis because there are
plenty of orange barrels. … How long before the borrowed money dissipates and
we don’t have any more money to build?”
Apparently,
the answer is the end of 2014. The Texas legislature has authorized TDOT to
borrow $17.3 billion for transportation projects, but repayment will cost as
much as $31.1 billion over 25 to 30 years. Nevertheless, TDOT will spend morrow
than it is authorized to borrow in the next two years: $10.5 billion this year,
and $9.3 billion next year. Of that total $19.8 billion, $6.7 billion is from
one time sources that won’t be available in the future.
Texas
motor fuel tax revenue – the state’s major funding source for road building – generates
$2.6 billion annually, but the state needs $14 billion per year to keep up with
population growth. Part of the problem has been the penchant of legislators
over the years to raid highway funds for fire and police salaries and operating
expenses, and now that big chicken is coming home to roost. One proposal is to
raise auto and truck license plate fees by $50 per year, but that would hardly
fill the budget gap. Even in Texas there aren’t half a billion cars and trucks.
If
you plan to drive through Texas in the future, make sure you have a good spare
tire. You will probably run into lots of potholes.
