Frequently Asked Questions
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Questions
General Questions
- Why doesn’t the state just raise the gas tax and let us keep our roads free?
- Who has final authority over route alignment for any new tolled project?
- What does toll road development mean to taxpayers?
- What benefit will toll roads have to the regular citizen?
- If TxDOT uses a private company to build toll roads, will that company be in charge of developing toll costs?
- What kind of access will the state have to the accounting practices of any private operator of the toll road? Will the state have full access to the operator’s full financial records, even if the company is a non-U.S. company?
- Will the state have access for inspection during the construction of toll roads?
- What role will private companies (foreign or domestic) have?
- What kind of access will the state have to the accounting practices of any private operator of the toll road? Will the state have full access to the operator’s full financial records, even if the company is a non-U.S. company?
- If TxDOT uses a private company to build toll roads, will that company be in charge of developing toll costs?
- Can the state take any property it wants and as much as it wants?
- How will the affected property owners be compensated for the economic and environmental impacts to their property?
- How will landowners be compensated for the land being acquired by TxDOT?
- How will right of way be acquired?
Answers
Toll Road Questions
Why doesn’t the state just raise the gas tax and let us keep our roads free?
The state gas tax only pays for 32 percent of our current state transportation budget. To generate enough cash to expand our transportation system as needed over the next 25 years, transportation funds could no longer be used for other budget purposes. At the same time, the state gas tax would have to be raised by 175 percent to 55 cents per gallon.¬¬ Even then, it would not provide sufficient funds for maintenance and other critical expenses. The prospect of a gas tax increase or the removal of funds from other areas of the state budget is unlikely. The state’s gas tax alone is not going to solve our problem.
BACK TO TOPWho has final authority over route alignment for any new tolled project?
FHWA has final authority over route alignment by virtue of their environmental approval authority. A private company cannot choose where a route will go. Determining a final route for a tolled project is done the same as any other highway project.
BACK TO TOPWhat does toll road development mean to taxpayers?
Toll roads will not be funded like the current highway system, which today taxpayers pay for through fuel taxes and related vehicle and driver fees. To help offset the current burden on taxpayers and to avoid any increase in the gasoline tax, we are developing public-private partnerships to fund toll roads. This means that only those who use the road will pay for it.
These partnerships allow us to take advantage of private sector innovation and resources to develop new tollways and reduce congestion, improve safety and address long-term mobility needs. The private sector is ready, willing and able to invest in transportation in Texas. We seek to combine the best of private sector business practices with the best in government to deliver a world-class transportation system to Texans.
BACK TO TOPWhat benefit will toll roads have to the regular citizen?
Whether it’s direct or indirect, citizens, businesses and local communities will benefit from toll roads. An improved transportation system provides more options to get around, less congestion, new economic development and more jobs.
BACK TO TOPFunding
Why doesn’t the state just raise the gas tax and let us keep our roads free?
The state gas tax only pays for 32 percent of our current state transportation budget. To generate enough cash to expand our transportation system as needed over the next 25 years, transportation funds could no longer be used for other budget purposes. At the same time, the state gas tax would have to be raised by 175 percent to 55 cents per gallon. Even then, it would not provide sufficient funds for maintenance and other critical expenses. The prospect of a gas tax increase or the removal of funds from other areas of the state budget is unlikely. The state’s gas tax alone is not going to solve our problem.
BACK TO TOPPrivate Company Involvement
If TxDOT uses a private company to build toll roads, will that company be in charge of developing toll costs?
TxDOT will establish the methodology for how toll rates will be set. Tolls will be set at a price that the market can bear. If it is too expensive, motorists will not use the road.
BACK TO TOPWhat kind of access will the state have to the accounting practices of any private operator of the toll road? Will the state have full access to the operator’s full financial records, even if the company is a non-U.S. company?
Although an actual contract has not been signed, the state will require the contract to have provisions relating to the maintenance and inspection of financial records and audits, which will allow TxDOT to determine the return on investment or return on equity received by the developer.
BACK TO TOPWill the state have access for inspection during the construction of toll roads?
TxDOT will have the right at all times to inspect the construction on toll roads. This could include the right to enter, monitor, inspect, sample, measure, attend, observe or conduct tests and investigations, conduct independent quality control, or conduct any other type oversight. These roads are public facilities so we will want to ensure they meet state safety standards.
BACK TO TOPWhat role will private companies (foreign or domestic) have?
Texas can partner with a private company to plan, design, finance, operate and maintain a transportation project. However, these projects will remain state-owned. Foreign companies will not own public transportation facilities.
By utilizing private sector resources and capital, TxDOT can deliver needed transportation improvements faster and stretch limited state and federal dollars further. As envisioned, toll roads will primarily be funded with private sector investment. This means traditional gas-tax dollars can continue to be used to fulfill our commitment to I-35 and other planned projects.
BACK TO TOPWhat kind of access will the state have to the accounting practices of any private operator of the toll road? Will the state have full access to the operator’s full financial records, even if the company is a non-U.S. company?
Although an actual contract has not been signed, the state will require the contract to have provisions relating to the maintenance and inspection of financial records and audits, which will allow TxDOT to determine the return on investment or return on equity received by the developer.
BACK TO TOPIf TxDOT uses a private company to build toll roads, will that company be in charge of developing toll costs?
TxDOT will establish the methodology for how toll rates will be set. Tolls will be set at a price that the market can bear. If it is too expensive, motorists will not use the road.
BACK TO TOPLand Acquisition
Can the state take any property it wants and as much as it wants?
No. The state can only acquire property reasonably needed for the uses of the planned transportation facility, as determined by engineers for vehicle lanes, rail corridors, utility corridors and related facilities.
BACK TO TOPHow will the affected property owners be compensated for the economic and environmental impacts to their property?
Property owners whose land is acquired or adversely affected by any public project will receive all of the compensation the state constitution guarantees and the Texas courts have deemed appropriate over the years. Generally, that includes the fair market value of the property acquired, plus all compensable damages special or unique to the owner’s remaining property, which may include deprivation of reasonable access, loss of or damage to improvements, including fences, and increased proximity damages.
BACK TO TOPHow will landowners be compensated for the land being acquired by TxDOT?
Any land needed will be purchased and property owners will be paid fair market value. There will be an independent appraisal, an offer to the landowner and opportunity for negotiation. If the property owner is not satisfied with the TxDOT offer, he/she can take the process through the judicial system, which could include a jury trial.
BACK TO TOPHow will right of way be acquired?
Right of way for toll roads will be acquired in the same way it’s acquired for all other roads. There will be an independent appraisal, an offer and opportunity for negotiation, and the same due process rights to a jury trial in the judicial system if the property owner is not satisfied with the TxDOT offer. TxDOT cannot delegate its property acquisition authority to another entity or company.
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