08-064 - R1. .. "
j�,�5soL1,c; ,oA-t 08-00004
RESOLUTION SUPPORTING THE DISCONTINUATION OF THE DIVERSION OF
TRANSPORTATION USER REVENUES TO NON -TRANSPORTATION USES
AND THE APPROPRIATION OF ALL REVENUE GENERATED FROM HIGHWAY
USER FEES AND TAXES TO FUND TRANSPORTATION PROJECTS.
WHEREAS, The Texas Transportation Institute estimates that Americans spend 38 additional hours in
travel time annually due to inadequate and undersized infrastructure; and
WHEREAS, The additional congestions wasted 2.9 billion gallons of fuel and cost over $78 billion in
time and fuel; and
WHEREAS, The additional 38 hours in congestion equates to almost five vacation days that would be
better spent with friends and family, an increase from 14 hours wasted in 1982; and
WHEREAS, maintaining aging highway infrastructure throughout Texas and expanding the highway
system for statewide connectivity and maintaining urban mobility requires far greater
investment in transportation infrastructure than is possible with current transportation
revenues; and
WHEREAS, It is estimated that over $14 Billion dollars has been diverted from State Highway Fund
006 revenues since 1986; funds that are badly needed for infrastructure improvements to
address infrastructure needs throughout the State of Texas; and
WHEREAS, Because the quality of life for Texans today and in the future will not be measured by an
increase number of hours in congestion, it is no longer sound public policy to divert
existing transportation revenues to non -transportation uses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF P jZoS PF— ` —
THAT The City of t��P� Texas supports the discontinuation of the diversion of
transportation revenues to non -transportation - sources and the appropriation of all
revenues from highway user fees and taxes to fund transportation.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
TEXAS, ON THIS �4DAY OF s "l 2008.
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THE HONORABLE DAVID E. DORMAN
July 10, 2008
TO: TEXAS MAYORS AND COUNTY JUDGES
As a fellow Texas Mayor, I have become increasingly concerned about the shortage of TXDOT
funding.
In February of this year, the news media bombarded us all with news that TXDOT might be
facing an audit concerning possible accounting errors as discussions were peaking concerning
funding for Texas Highways. TXDOT officials have initiated budget cuts and a freeze on some
current and future road projects because of dwindling revenues.
Just a few months ago, the Pew Research Center, issued a report acclaiming Texas as the fourth
best -run state in the nation and acknowledging the benefits of State Legislature's performance
budgeting system which resulted in spending less money per resident than any other state in the
country. The Pew study praised TXDOT, but noted that the agency "is strapped for cash"
resulting in putting off projects in order to maintain existing assets. On the surface, this appeared
positive for the State until bores much deeper in the reality of the State budget.
Over the years, cities and counties have been involved in a healthy competition for
transportation resources... with the most needed projects typically securing funds. In the process,
we have all learned more about statewide needs and how to justify our requests more thoroughly
in order to win the "favor" of TXDOT and secure needed highway projects. In the process I
believe we made our entire system better by sharing expertise and enhancing justification.
Unfortunately, that system has disappeared for one simple reason! There are virtually no Funds
to compete for; TXDOT has empty pockets. Many reasons can be identified including higher
priced construction, increased maintenance requirements, accounting issues, a static gas
tax .... and on and on. But there is an even more significant culprit to blame. The purpose of this
discussion is to heighten your awareness of the most significant reason we are without highway
funds and to serve as a "call to action" for all Cities and Counties and ultimately the public to
join together to restore highway funding back.
City of Melissa - P.O. Box 409 - Melissa, Texas 75454 - 972.838.1080
mayordorman@cityofinelissa.com
Not paid for at taxpayer expeare.
For many decades, Texas has been blessed with dedicated funds going into the Highway Fund
which allowed TXDOT to build and maintain an enviable highway system for our state. We all
contributed to Fund 6 with each gallon of gas purchased. Unfortunately, the purchasing power
of the highway fund has been eroded. This has occurred partially as the result of inflation and
the fact that the gas tax was not indexed to rise with the cost of gas or general inflation, but is a
fixed amount per gallon. Gallons of fuel consumed have risen, but that rise has been the result of
more people creating increased demand for highway lanes, which has failed to keep pace with
inflation. Also, since the tax on gasoline has been static, the focus should have been on how to
protect those dollars and use them to the fullest extent for the intended purpose.
In fiscal 1986 the Legislature took a fairly inconspicuous action by appropriating $28.1 million
of the Highway Fund (Fund 6) for non -highway related expenses. By the past fiscal year (2007),
the non -highway related appropriations coming out of the Highway Fund had risen to over $1
billion, 3 times as great as the initial year. Thus, while inflation has eaten into the purchasing
power of our dedicated highway dollars, it is even more frustrating to realize that our state
legislature spent our highway money on non -highway expenditures. Just about everyone
associated with government has heard the old saying "a million here and a million there.... pretty
soon you have some real money". Well the real money has now become over $14 BILLION
dollars.....enough that many crucial projects could have been easily funded with money the
public thought was dedicated to roads.
We do have a crisis in highway funding. It is a crisis that cannot possibly be resolved until the
Legislature recognizes the significance of a basic public trust:
Dedicated funds must be spent for the intended purposes.
Many of the appropriations were no doubt "needed projects and services". The difference is that
if the Legislature wanted to make those appropriations, other sources should have been used. In
the early years, there appeared to be a surplus of highway funds, but as the years of dependence
on "borrowed highway dollars" passed, so did the surplus highway dollars reaching the current
level of TXDOT being "strapped" as the Pew report stated. Thus, our State is left without
needed highways and no plan to get them except through toll project which, while needed,
further contributes to the public road funding burden. While the legislature has taken the easy
road by using our highway funds for other purposes in order to maintain lower expenditures and
securing accolades for it performance budgeting system, the driving public suffers. It is apparent
that the time for change has come and that true performance accountability be integrated into the
system.
Our highway fund revenues have steadily grown, but the acceleration of taking dedicated
highway money for non -highway purposes has exploded as a percentage of the Highway Fund
Revenue and as a the percentage of these funds spent for non -revenue purposes as compared to
the growth of Total State Revenues.
This does not mean MOT would have plenty of money for our road needs or that we would
not still have need for some toll roads. It does mean, however, that proper stewardship of the
state Highway Fund would have provided our citizens many more miles of required highways.
The major urban areas of Texas are dependent on quality transportation as is the economic
growth and sustainability of our entire state. We must all work together and encourage the
legislature to eliminate reliance on our highway funds to balance the budget. If projects are
needed, they should be funded, but not from the life blood of our economic development and
transportation system.
Perhaps we were all complacent. A few million in 1986 may not have been a significant amount
of highway projects and perhaps the legislature intended to `pay it back'. After all, Interfund
borrowing is common .... so long as there is a mechanism to re -pay. A few years of complacency
and the result is the painful realization that we desperately need that $14 billion for highways,
but no effort has been made to return it to the Highway Fund. We must insist that the practice of
using dedicated funds for other purposes terminate and we must all work together to hold the
system and one another accountable.
I trust you share my concern and will commit to work to reverse the Highway Fund dilemma by
having your council put forth a resolution advising the Legislature that we, the governing bodies
of the State of Texas, find the diversion of dedicated tax dollars unacceptable to the citizens of
the State of Texas, and not only demand that they abolish the diversion from Fund 6, as well as
use some of the surplus dollars that the Governor and the Controller have stated are available to
pay this fund back.
Every municipality and county in the State of Texas will be receiving this letter and a resolution
for their governing body to consider. The goal will be to have these resolutions sent back to me
so that we may hand carry them to the Senate Sub -Committee on Transportation prior to the
2009/2010 Legislature convening.
Thank you for your time and I look forward to future dialogue with you all. We must all stand
together!
Sincerely,
David E. Dorman
Mayor, City of Melissa
Encl: Resolution
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