|
"The Landscape Has Changed; Revenue is in Freefall"
Summary of Comments of Delvin Dennis, TxDOT Houston District Engineer, to
the West Houston Association's March 2, 2010 Issues Forum
October 28,
2009 marked the first anniversary of the ribbon cutting of Interstate 10
West, a unique urban freeway reconstruction project: 21 urban miles,
$2.6 billion total cost and a record-breaking 6 years of construction.
It has positively affected commute times and development in West Houston.
However, the
financial landscape for TxDOT has changed for the worse and revenue is in
freefall. The independent panel assembled by the Transportation
Commission assessed annual statewide
needs at $14 billion per year while only $2 to $3 billion is available for
construction and design lettings. (The Executive Summary & Full Report of the 2030 Committee is available at
this link to the committee's website. (pdf))
The summary of needs is on a nearby chart. In 2010, TxDOT is
planning a construction letting of about $2.1 billion statewide (2010
obligation limit). Houston's share is $266.9 million plus $145.3
million in stimulus funds and $31.4 million in Proposition 14 funds.
Report Shows Reduced Funding for
Houston
A recent report from the Houston
Transportation Policy Council focuses on the projected decrease in Houston
lettings that will result from lower taxes and fees. This report is
the precursor of formal action by the TPC to be submitted to TxDOT in June
2010. The bottom line is that we will need to pull $7 billion of
highway projects out of the 2011-2020 period to reflect the lower state
and federal funding.
Read the
report at this link. The following chart illustrates historical
and forecasted lettings for the Houston region.
Dennis pointed out that Dallas Fort
Worth, unlike Houston, has and will
continue to have a massive roadway construction program partly because of
their aggressive use of tolls and public/private partnerships.
This level of activity is not imminent in Houston.
US 290 Corridor
US 290 Corridor environmental impact
statement record of decision is expected in May of this year. At
that time work could commence if funds were available. $350 million
of Proposition 12 funds (supported by general revenue of the State of
Texas) were allocated to design and build approximately one half of the US
290 Interstate 610 interchange. Bids will be taken in May 2011.
This is a "down payment" on the total estimated cost of $2.4 billion for
US 290 from I-610 to FM 2920. An additional $2.2 billion is the
estimated cost of the Corridor's Hempstead Managed Use Lanes from I-610 to
the Grand Parkway. The total cost of the Corridor is double that
spent on Interstate 10 West.
The outlook for overcoming the revenue
decline is uncertain as the Texas Legislature will face a general budget
deficit when it meets in January 2011.
Startling Results from the Texas 2030
Committee
"Texas eliminates private
sector participation at our peril."--Transportation Commissioner Ned
Holmes
Never have
the demands on the roadway system in Texas been greater than they are
today. Continued growth in demand and continued erosion of the
fundamental user fee based motor fuel tax have combined to heighten the
frustrations of the citizens of Texas. This transportation funding
crisis threatens to turn TxDOT in to "maintenance only" and the motor
fuels tax into a "maintenance fee."
If the citizen's of Texas
wish to have an expanded system to meet the needs of this growing state,
they must provide the revenue to make it happen.
Basic
funding requirements of maintenance--system preservation--represent a
significant challenge. In addition, the demands of growth and
expansion of the statewide system are going unmet. This current
crisis is set against a backdrop of growing fiscal demands on Texas
citizens and the current national economic crisis.
The independent 2030
Committee recently release a report stating that total project needs
between 2009 and 2030 are $315 billion, or $14.3 billion annually.
Only $2 to $3 billion is available annually leaving a gap of $11 billion
per year.
In this
context, Ned Holmes, a member of the Texas Transportation Commission,
addressed the West Houston Association Issues Forum in March. Ned
Holmes calls for utilizes all resources available to address this
challenge. In particular, he champions the use of leveraging
available resources through the use of private sector investments.
Ned Holmes full
presentation is available at this link (pdf).
The Executive Summary & Full Report of the 2030 Committee is available at
this link to the committee's website. (pdf) |