state legislative update - texas a&m university · – fy 2015: $1.74 billion – fy 2016:...

TxDOT Transportation Planning Conference June 16, 2016

STATE LEGISLATIVE UPDATE

Trent W. Thomas State Legislative Affairs Director


House Bill 20

Passed during 2015 legislative session Requires evaluation of TxDOT planning processes

– Performance-based planning – Project selection criteria

Requires 10-year plans by MPOs and TxDOT districts Design-build contracts –$150 million minimum

project cost Establishes House and Senate select committees on

transportation planning

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House Bill 20

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SEP

2015 2016

OCT NOV DEC

Sep. 1, 2015: TxDOT submits required initial report to the legislature

Mar. 31, 2016: TxDOT submits required preliminary report to the legislative select committees

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Nov. 1, 2016: Legislative select committees to submit recommendations in final HB 20 report

Winter–Fall 2016: Legislative select committee hearings

HB 20 Implementation Timeline


Sunset Review

Texas Sunset Advisory Commission reviews whether a state agency is needed or how it can work better and save money – Commission is five Senators, five Representatives, and two public members

TxDOT is one of 24 agencies currently under review this biennium

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APR MAY JUN JUL AUG SEP OCT NOV DEC JAN

Sunset Review

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April 2016: Sunset staff kick-off meeting with TxDOT

Spring–Summer 2016: Sunset staff meetings with commission, divisions and districts

Fall 2016: Sunset findings released, Public hearings held

2016 TxDOT Sunset Review Timeline

Winter 2016: Sunset Commission issues recommendations


Sunset Review

Division Meetings so far: 17 – More anticipated through summer

District Visits so far: 2 – 4 more planned for summer

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Sunset Staff TxDOT District Visits

Sunset staff members, SH 71 Express Project, Austin, May 2016


Sunset Review

Sunset staff members assigned to TxDOT review

Discussions with Sunset staff are confidential, documents are not subject to disclosure

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Amy Tripp Sr. Policy Analyst

Alan Leonard Policy Analyst

Tamara Schiff Policy Analyst

Jennifer Jones, Deputy Director

Katharine Teleki, Review Director


Funding Outlook – Proposition 1

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2014 constitutional amendment – Portion of oil & gas severance tax revenues into the State Highway Fund (SHF)

Unpredictability

Funding fluctuates year to year – FY 2015: $1.74 billion – FY 2016: $1.13 billion – FY 2017: $0.60 billion (est.)

Rainy Day Fund threshold established by legislative select committee – Raising the baseline could result in

fewer or no Prop 1 funds to TxDOT


Funding Outlook – Proposition 7

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2015 constitutional amendment – Portion of general sales tax and motor vehicle sales tax revenues into the SHF

Estimated revenue: – FY 2018: $2.5 billion – FY 2019: $2.5 billion – FY 2020: $2.9 billion

Unpredictability By 2/3 vote, legislature can reduce Prop 7

revenue deposited into SHF by up to 50% in a given fiscal year

Leg. can budget Prop 7 to pay debt service (fewer dollars for highway improvements)


State Budget Challenges

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Issue Action Date Potential Costs Foster care system overhaul

Ruling in December 2015, Reform process began April 2016

$100 million per year

Oil and gas equipment sales tax exemption

Texas Supreme Court decision pending – expected in 2016

$4.4 billion in refunds for 2017 and $500 million per year after 2017

AMC Theatres franchise tax deduction

Texas Court of Appeals decision pending – expected in 2017 or later

$6 billion in initial refunds and $1.5 billion per year thereafter in lost collections

Court cases could impact the state budget in upcoming sessions


State Budget Challenges

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Other Cases and Issues

House committees considering additional school finance reforms – Future measures are not expected to impact

transportation funding

Rising health insurance premiums for teachers – May require more state and school district

spending to fund plans


Energy Sector Roads

Over the past several years, the Texas Legislature has passed multiple measures to address energy sector roads

– County Transportation Infrastructure Fund • In 2013 authorized TxDOT to distribute

$224.5 million among eligible counties – Proposition 1

• In 2014 allocated portion of new funding to energy sector needs

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Energy Sector Roads

$1.5 billion in total funding initiatives since 2013 TxDOT repaired damaged pavement and addressed immediate safety needs

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Energy Sector Improvements Completed

Miles of pavement repaired 899

Miles of shoulders added or repaired 221

Miles of pavement rehabilitated 955

Intersections improved 8

Miles of narrow lanes widened 928

Energy Sector Corridor Improvement Program announced March 2016


Texas Transportation Commissioners on Energy Sector Needs

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Priority 1 Energy Sector corridor funding needs

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Note: Priority 2 Energy Sector corridor funding needs total an additional $1.25 Billion.

Energy Play Priority 1 Corridor Estimate

Eagle Ford Shale $ 569M

Permian Basin $ 676M

Barnett Shale $ 271M

Anadarko Basin $ 97M

Haynesville-Bossier $ 179M

Total $1.8 Billion


Process to develop a corridor improvement program

Districts have developed preliminary project scopes and estimates

Workshops in energy impacted areas

– June: Midland & Victoria

– July: Carthage

For more information go to www.roadsfortexasenergy.com

A public relations campaign was launched in 2012

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http://www.roadsfortexasenergy.com/


In Closing

FOR MORE INFORMATION, GO TO THE TXDOT STATE LEGISLATIVE AFFAIRS

WEBSITE or TxDOT CROSSROADS

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state legislative update - texas a&m university · – fy 2015: $1.74 billion – fy 2016:...

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