2014 Voter’s Guide For The Texas Constitutional Amendment, Proposition 1

Hardhatters ^ | 10/17/2014 | Hardhatter's Team

[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 2^nd 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?

[Paleo Conservative]

Those are urban state highways.

[Grams A]

I agree that those particular roads should be repaired. However, Prop 1 is all or nothing. Highway construction is rife with fraud top to bottom and I don’t trust Texas politicians any more than those in DC so will still urge everyone I know to vote NO on Prop 1.

[TropicanaRose]

Last call for reasons to vote for or against this because I’m going to early vote tomorrow. Both sides make good arguments so still undecided. Please & thank you!

[thetallguy24]

The 2014 Texas GOP Platform calls for the Rainy Day Fund to only “cover revenue shortfalls in the current biennium, debt retirement, one-time infrastructure projects, and expenses related to a state of disaster as declared by the
governor.”

Prop 1 is only designed to cover desired spending shortfalls. Force Republican legislators to follow our platform!

http://www.texasgop.org/wp-content/uploads/2014/06/2014-Platform-Final.pdf

[CPT Clay]

This is very well written.

[CPT Clay]

I voted NO

[TropicanaRose]

OK the nays won.

FYI, you can vote straight ticket R & still vote for or against Prop 1. (My mom had trouble with this.) Just hit the next button to page through all the pages & it’s the very last thing on the last page (before the summary pages).