Posted on 10/18/2014 5:47:16 PM PDT by thetallguy24
On November 4th, 2014 (early voting starts October 20), Texans will have the opportunity to vote on one proposed amendment to the state’s constitution. Hardhatters offers our views on Proposition 1.
Prop 1 (HJR 1)
Ballot: "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."
Summary: Proposition 1 will require the Texas Comptroller to transfer 50% of oil and gas tax revenues away from the economic stabilization fund (Rainy Day Fund) to the State Highway Fund. Proposition 1 could be used only for constructing, maintaining, and acquiring rights of way for public roadways other than toll roads. Proposition 1 would take effect immediately if approved.
Proponents Say:
Proponents of the amendment make their case based on the understanding, broadly shared across the political spectrum, that Texas transportation is underfunded. David Ellis, a researcher with the Texas A&M Transportation Institute, told a House Committee in May that TxDOT needs about $4 billion in additional annual funding just to maintain current road quality. Attorney General and Republican nominee for governor Greg Abbott has talked about the need for more funding of Texas transportation. The state gas tax, unindexed for inflation, has lost its purchasing power.
Prop 1 accomplishes this without raising a penny in fees or taxes. It simply divvies up oil and gas production taxes in a different and more effective way. Texas roads are breaking up under the strain of an exploding population. Prop 1 directs funding to a problem which needs attention in the here and now, while maintaining a revenue source for the Rainy Day Fund and leaving its current account balance untouched.
An argument can also be made that the increase in oil and gas production, and the corresponding rise of heavy trucks and machinery travelling on Texas roads, are partially responsible for highway deterioration. Pegging tax revenue from those activities towards improving the damage they create is a sensible and responsible solution to oil production externalities.
The legislation is in not perfect. Legislators should realize that the money Prop 1 will direct to roads is not estimated to be adequate to satisfy all of the state’s transportation needs. It is simply a start. Currently, much of road work is funded through debt and tolls. Prop 1 breaks out of the model, which is a good thing.
Opponents Say:
Opponents argue that session after session, the Texas Legislature has kicked the can down the road on funding our transportation infrastructure. The Legislature is constitutionally required to fund our roads and bridges, yet legislators never prioritize it. In the past, they have diverted dedicated funds (e.g. gas tax and vehicle sales tax) away from transportation or have forced toll roads down peoples’ throats (SB 1730). During the 2013 session, instead of making transportation a key budget item, they waited until the third special session to deal with it. Officials would rather prioritize billions for non-core items funding corrupt, crony-capitalist programs like the Texas Film Commission, the Texas Events Fund, the Texas Enterprise Fund, the Emerging Technology Fund, and CPRIT.
Officials and economic development groups tout Proposition 1 as a major advance to funding roads, yet fail to inform you that this will drain HALF of the Rainy Day Fund’s revenues each year. Legislators in Austin love to use the Rainy Day Fund to compensate for their shortcomings, but the sole reason the Rainy Day Fund was created in 1988 was to be prepared for hard times similar to the recession that hit Texas in the 1980’s. The Texas Legislature spends from the Rainy Day Fund as if we were in a 2nd Great Depression, but at the same time Texas politicians brag about the “Texas Miracle” and how Californians are coming here in droves seeking prosperity. When disasters (a.k.a. rainy days) like the wildfires in West Texas or the explosion in West occur, our leaders demand help and funds from a broken and broke Washington D.C., ensuring our own Rainy Day Fund remains pristine in preparedness for their budget failures.
Proponents also say no toll roads can be funded with this money; however, it appears there may be a major loophole. According to TxDot representatives, Proposition 1 funds may be used to build the portions of toll roads that aren’t tolled. The law does not prevent roads being built with Proposition 1 funds from being turned into toll roads in the future. It also does not prevent TxDot from handing over its maintenance responsibilities to local governments, which it has been attempting to do with many roads.
History also repeats itself. While the Rainy Day Fund appears healthy for the moment because of the oil and gas boom in Texas, booms are not eternal, as the oil and gas markets can be extremely volatile. What if a bust similar to the 1980’s were to happen? Legislators would be back to square one facing the same problem, especially since Prop 1 would only fund 30-40% of TxDot’s budget shortfall.
In the end, Prop 1 is just a Band-Aid, solving none of the intrinsic problems facing transportation. First, transportation should be one of the first budget priorities instead of last. Second, all taxes and fees that are transportation in nature (gas tax, vehicle sales tax, registration fees, etc.) should be dedicated 100% to road and bridge construction and maintenance ONLY. Attorney General Abbott has made similar suggestions. Finally, voters should reject any attempt at Austin politicians from draining the Rainy Day Fund for any reason other than economic downturns or natural disasters. Why call it a Rainy Day Fund if it’s not for a rainy day?
I'm leaning vote no. Force Joe Straus and his cronies to stop putting bandaids everywhere and deal with it.
I am all for raiding the rainy day fund until it is dry. Otherwise, the federal government will see it as a big pile of money to be raided (by hook or by crook) to use as they please. Like bailing out bankrupt states run by confiscate and spend liberals. No thank you. If you’re not going to return it to the taxpayer, I say bleed it dry.
NO as well here.....
that rainy day might just be for Ebola care, cleaning of apartments, hospitals, for just one or two people.
What if we have dozens? we will need that “rainy day fund”
I vote no and suggested to all the family that they vote no as well.
Good .... share facts with everyone you know. Stay Safe !!
The proposal by TX Attorney General Abbott (soon to be Governor), linked to in the final paragraph, makes more sense to address the issue of transportation funding in TX while maintaining the integrity and original purpose of the Rainy Day Fund.
Thanks for posting this useful information that presents both sides of the argument.
Don’t thank me. Thank the very few people who actually cover Texas politics like these guys. We need more like them.
For later.....
Vote no. The rainy day fund is for emergencies and not known and continuing needs or wants. When the Great Recession hit, the majority of the states had to borrow money from the US to pay unemployment. Later they had to pay the money back and jack up their unemployment deduction rates.
The jerks in Austin are drooling over the fund and we could expect that once raided the fund would be drained dry for foolish, wasteful and unnecessary projects.
One positive with moving a chunk of the Rainy Day Fund, will be the pols will then not have such a scrumptious sugarplum to long for and there would be just enough left in the Rainy Day Fund to fund actual rainy days.
I pretty much like the gas tax remaining behind the times. If highway funding stays below need, at some point the gas tax is going to be put into play.
Most Counties extra charge the heavy haulers, which is primarily Oil and Gas, for extra wear and tear on County roads. I am not sure if the State does the same, tapping these oil and gas tax revenues for roads will in effect do that.
As long as we have Joe Strauss or another like him, we will have his dirty little raids on any money pot he sees. Prop 1 will neither hinder or help that problem.
I will be voting “No” on that.
Sent the article to everyone on my email list who lives in Texas - and to my state Congressman and Senator, both of whom strongly support the Amendment and asked them all to please vote NO!
that rainy day might just be for Ebola care, cleaning of apartments, hospitals, for just one or two people.
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I don’t see such activity as the responsibility of the State.
I hope and pray that the RINO Commie Joe Straus is not back next year.
The Rainy Day fund is filled by Gas/Oil taxes. At this time it is very full.
I vote we use some of the extra money in the Rainy Day fund to fix/add new roads.
In Houston where we have major issues with the roads this would help all of us
As best as I can tell, and they do a good job of hiding it, roads got killed back in the 90s because they took a boatload of money from roads and gave it to HHS. Hard to recover from years of almost total neglect.
Voting no, if they get their hands on the money they'll just squander it.
Not that they won't get their hands on the money and squander it anyway but I'd prefer not to make it easier for them.
I don't think it is either but it may end up having to be if we have dozens of Ebola case or hundreds?
Or they could use the oil and gas revenue to build a fence, just sayin’.
SS1
Many of the roads that would be funded by using severance taxes are county roads that have been decimated by the heavy traffic generated by the fracking boom. You should see how bad the damage is. Considering it is precisely these oil and gas fields that have impacted the infrastructure, I think it is appropriate for some of the tax revenue generated by oil and gas severance taxes be used to fix those roads.
Umm...but like that article said, didn’t TxDot try to pass all that off on local governments?
They may try it again.
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