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State Highway Fund Quickly Running Dry

04/08/2009

Texas business and transportation leaders testified before the Senate Transportation and Homeland Security Committee Wednesday expressing concern that transportation funds will dwindle in the coming years and that, without intervention, Texas business and trade will suffer. According to projections, funding for congestion relief will run out in 2012 and remaining maintenance funding will also be insufficient, resulting in continued deterioration of pavement quality across the state.

“In Houston last year, TxDOT completed reconstruction of the Katy Freeway, adding seven lanes and resulting in a documented decrease in travel time,” said Ned Holmes, Texas transportation commissioner and Houston businessman. “However, the Katy Freeway is just one road – every major artery in Houston is in need of the same type of overhaul to ensure the timely movement of people and goods throughout the region. The same is true of the state’s other metro areas and busy corridors. We have to find a way to fund additional capacity. Waiting to address the issue until funds actually run out is not an option.”

The projections were created using two independent reports analyzing transportation need and transportation funding. The first, written by the independent 2030 Committee , examines transportation need over the coming 20 years and recommends a level of funding – approximately $14 billion annually - to ensure adequate maintenance and construction of additional capacity to manage the time Texans spend in traffic. The second, developed by the Association of Texas Metropolitan Planning Organizations (TEMPO), establishes a model for estimating future transportation funding levels based on multiple variables. Note: The TEMPO report has not been released yet, the attached is the testimony presented by TEMPO Executive Director, Dan Kessler, summariing the reports findings.

Ken Allen, HEB senior vice president of supply chain logistics and member of the 2030 Committee echoed concerns about the speedy movement of people and goods throughout the state. “Congestion on Texas roadways costs businesses time and money,” said Allen. “While working with other transportation experts and business leaders on the 2030 Committee, I heard firsthand from people across the state what I already thought to be true: that the quality of our transportation system drives economic opportunity for all kinds of business, both large and small, and that continued investment and improvement to our highways, rails and ports is essential to keeping the state’s economic engine running smoothly.” Transportation system improvements benefit more than just the business community. Reducing congestion improves quality of life for all motorists. “The less time citizens spend in congestion, the more time we have for family and friends,” added Allen.

Senator John Carona, chair of the Senate Transportation and Homeland Security Committee said he hopes to work toward a solution this session. “Texas is one of the most attractive places for business in the nation, and continued improvements and maintenance to our transportation system is step number one for keeping us there,” he said. “I’m committed to working with my colleagues in the Texas Senate and House to address this funding problem. We may not be able to get all the way there in one session, but I expect us to take steps necessary to ensure that Texas motorists and Texas trade does not suffer.”

Reprinted with permission from the Texas Senate Committee on Transportation and Homeland Security