West Houston Association Issues

"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)