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PROPOSITION 1 AND SELECTED TRANSPORTATION PROJECTS IN TARRANT COUNTY SOUTHEAST TARRANT TRANSPORTATION PARTNERSHIP OCTOBER 8, 2014

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WHERE DOES FUNDING COME FROM? THE HIGHWAY TRUST FUND Established in 1956 Functions as an accounting mechanism Cash in: excise tax on motor fuels, trucks, tires Cash out: spending on highway and transit programs Made of two accounts Highways Mass Transit The future status of the HTF is uncertain Changes in oil prices, the economy, and fuel efficiency all have major impacts on the HTF Since September 2008, Congress infused the HTF with tens of billions to keep the account solvent

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TRANSPORTATION SYSTEM FUNDING BASICS TxDOT Budget Plan, Maintain & Build Transportation Projects Point of Collection* Federal Highway Trust Fund Highway AccountMass Transit Account 1/10 cent per gallon to EPA L.U.S.T. Trust Fund 1% General Fund Refunds for non-road use $7.3 million to County & Road District Fund 25% Education Diversions: Round 1 Diversions: Round 2 Other State Agencies Portion Returned to Texas Portion Sent to Other States REFUNDED Less Than Put In Federal Motor Fuel Tax Rates (Cents per Gallon) Gas/gasohol: 18.4 Diesel: 24.4 State Motor Fuel Tax Rates (Cents per Gallon) Gas/gasohol: 20.0 Diesel: 20.0 *The Federal Government also imposes taxes on large trucks/trailers, truck tires, and usage fees for large trucks. Fund 006 DPS

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FUNDING SHORTFALLS Transportation funding shortfalls exist across all levels of government (federal, state, regional, local) Innovation and collaboration have become very important Traditional funding sources are unreliable Shortfalls create project delays Priorities are forced to change Highlights need to pursue alternative, innovative funding options Toll roads Public-private partnerships Managed (Express) Lanes

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PROPOSITION 1 Prop 1 will appear on the November 4, 2014, ballot for voter approval Proposed language: The constitutional amendment providing for the use and dedication of certain money transferred to the state highway fund to assist in the completion of transportation construction, maintenance and rehabilitation projects, not to include toll roads.

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ELIGIBILITY FOR PROP 1 FUNDING Eligible projects include: constructing, maintaining, and acquiring rights-of-way for public roadways other than toll roads Not eligible: Toll roads or managed toll lanes Programs (e.g., ITS, safety, signals, bicycle/pedestrian) Transit projects

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GENERAL PRINCIPLES OF PROP 1 Focus on large projects Focus on projects on the interstate highway system, then other on-system projects Few, if any, off-system projects Seeking very traditional, roadway projects Projects should be ready for construction soon, though not necessarily shovel-ready Projects must be in the current mobility plan While maintenance projects are eligible, they should not be a focus (except for in energy-producing areas)

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PROP 1 ANTICIPATED FUNDING AMOUNTS Anticipate $1.4 - $1.7 billion available statewide in first year Dallas-Fort Worth regions share would be approximately $200-300 million (in first year) Annual allocations in the future, subject to legislative committee review of Rainy Day fund

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Source: Senator Robert Nichols, Chairman, Senate Transportation Committee

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MAJOR ROADWAY IMPROVEMENTS IN SE TARRANT COUNTY 12

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QUESTIONS? 19 Christie J. Gotti Senior Program Manager NCTCOG 817/608-2338 cgotti@nctcog.org