TSRT Blog

U.S. Transportation Secretary Predicts Delayed Long-Term Funding

Emily — Sat, 28 Jan 2012 00:43:56 GMT

In Tuesday’s State of the Union address, President Obama called for better infrastructure development over the next years as war spending decreases. “So much of America needs to be rebuilt,” the president said. “We’ve got crumbling roads and bridges. There’s never been a better time to build, especially since the construction industry was one of the hardest-hit when the housing bubble burst.”

U.S. Transportation Secretary Ray LaHood said Wednesday that he is not confident in Congress’s ability to come to an agreement for a long-term funding solution to the nation’s growing infrastructure needs. The last long-term bill expired almost three years ago, and transportation spending planners have been forced to work with merely eight short-extensions since then. Read an article about it here.

The proposed two-year Senate plan does not agree with the five-year House plan, which would both greatly reform the federal transportation bureaucracy and give a significant amount of spending authority to the states. Especially in Texas where our road usage is expected to grow by 214% over the next 25 years due to population increases, it would be beneficial for states to decide for themselves when, where and how much transportation spending is needed.

Following LaHood's "gloomy appraisal" on Wednesday, a Washington Post article said on Thursday that the Senate is taking action to reach a bipartisan agreement on the transportation bill. Senator Barbara Boxer, whose public works committee approved a two-year transportation bill in November, assured that "by the end of next week all the [Senate] committees will have done their jobs." Sen. Boxer also claimed that this bill will reach the Senate floor before transportation funding ends at the end of March.

The United States Congress must continue working diligently to develop a long-term solution for infrastructure spending to stop roads from deteriorating across the nation. Americans deserve a safe and reliable transportation system they can depend on. Texans should take advantage of opportunities to encourage lawmakers to make decisions in the state legislature to support a fully funded transportation system for its citizens.

LaHood suggests how to get both politicians and the public invested in the transportation bill in his Web series “On the Go,” which can be viewed here.

Heritage Foundation highlights need for transportation funding through public-private partnerships

Emily — Wed, 25 Jan 2012 20:10:52 GMT

The Heritage Foundation recently released an insightful report by William Reinhardt and Ronald Utt on how public-private partnerships can help to fill the transportation funding gap facing our nation.

The Foundation reports that the House of Representatives and Senate are each working on language to reauthorize their highway plans. Unfortunately, the funds appropriated for infrastructure and transportation needs in the current proposal are less than previous proposals and the President’s February 2011 plan. In addition, the federal gas tax used to support transportation funding needs has not been raised since 1993. Fuel efficiencies have increased since then, leaving a major gap in revenues necessary to maintain and expand our nation’s highway system.

In light of diminishing government funds available for state and federal transportation initiatives, Texas should take advantage of opportunities to incorporate public-private partnerships (P3s) in transportation construction and maintenance plans. Pairing public tax dollars with private-sector investment provides additional funding opportunities to meet Texas’s growing infrastructure needs. In fact, given today’s economy and the significant fiscal challenges facing our state, P3s are sometimes the only option in ensuring this much-needed infrastructure can be built.

The Heritage Foundation highlights Texas as an example of how P3s can be successfully leveraged to fund and construct transportation projects, mentioning the $8.15 billion of concessions in our state’s P3 program since 2001. It also highlights Texas’s ability to multiply the state contribution of $990 million eight times by partnering with the private sector.

The Foundation suggests several opportunities for P3s to flourish within states, such as doing away with the current practice of using P3s as fallback options and instead encouraging state governments to consider them from the beginning of a project proposal. With our increasing population and growing number of drivers, roads will only become more congested and in need of repair. Texas lawmakers need to take a hard look at the need for a fully-funded transportation system and the innovative funding options – such as P3s – that can help us achieve a safe and reliable transportation system for all Texans.

Click here to read the full report on how public-private partnerships can benefit Texas’s transportation infrastructure.

Texas’ First Segment of Interstate 69 Marked in Robstown

Emily — Thu, 08 Dec 2011 22:07:35 GMT

On Monday, December 5, a sign marking the first segment of Interstate 69 was revealed in Robstown, Texas. Interstate 69 is Texas’ first new interstate highway in nearly two decades. After years of discussion and obtaining approvals by the Federal Highway Administration and Americans Association of State Highway Transportation Officials, the interstate received final approval from the Texas Transportation Commission to label its first segment in Texas. Read TxDOT’s news release here.

Interstate 69 will connect the southern part of the state to other states and neighboring countries and serve as a catalyst to improve interstate commerce, economic development and transportation infrastructure across the state.

"Here in Robstown, Interstate 69 begins a journey that will ultimately link the Rio Grande Valley, the Coastal Bend, the Golden Crescent, the greater Houston metropolitan area, Southeast Texas, and the Piney Woods to six states, three countries, and a growing trade corridor," said John A. Casey, district engineer for the TxDOT Corpus Christi District. "Here in the Coastal Bend, Interstate 69 connects ports, waterways, trains, airports, and highways to create opportunities for jobs and increased commerce between the U.S. and countries on every continent across the globe. It’s that big of a deal."

The development of Interstate 69 across southern Texas is an important step toward improving mobility across the state and the nation. The highway, which was identified by Congress as a Federal High Priority Corridor in 1991, has begun to take route along its Texas path. Eventually, the highway will connect the Texas-Mexico border with the Canadian border through the following states: Texas, Louisiana, Arkansas, Mississippi, Tennessee, Indiana and Michigan. The interstate's Texas route is still being developed.

"Official designation of the first segment of I-69 in Texas is a huge milestone in the project's development and is a visible sign of the progress being made on I-69," said Polk County Judge John Thompson, chairman of the Alliance for I-69 Texas. "We will continue to work with our partners to complete additional segments of I-69 and to ensure the ultimate completion of this seamless interstate which will provide tremendous opportunity for economic development and job growth, as well as enhanced safety and freight movement."

This Week in Texas Transportation...

Emily — Fri, 11 Nov 2011 23:01:09 GMT

On Nov. 8, Texas voters gathered at polls across the state to vote on 10 proposed constitutional amendments. The proposition items in the Texas Constitutional Amendment Elections included some of the following: keeping property tax exemptions for the families of disabled veterans, allowing for the issuance of general obligation bonds by the Texas Water Development Board, and allowing for the issuance of general obligation bonds of the State of Texas to provide student loans. You can see the results of the election in this Nov. 9 Austin American Statesman article. Voters approved 7 of the 10 propositions. The proposition that we blogged about a couple of weeks ago that would allow a county to issue bonds to finance the development or redevelopment of unproductive or underdeveloped areas (Proposition 4) did not pass.

In addition to the Constitutional Amendment Election day this week, the Regional Transportation Council held its first ever closed meeting on Nov. 10 to discuss economic development incentives. The RTC, comprised of 43 members including local elected and appointed officials from the DFW metropolitan area and representatives from the area's transportation providers, meets on the second Thursday of each month. An exemption to the Texas Open Meeting Act allowed the Council to meet behind closed doors. No one is exactly sure what the Council discussed in the meeting, but Michael Lindenberger, a transportation reporter at the Dallas Morning News, has a few ideas. Read about them here.

In other news this week, The Regional Transportation Council - and many Texans in the Denton area - received some bad news: there is not enough money to rebuild I-35E from Dallas to Denton. Discussion on this major project has been underway for more than ten years. In fact, this project was a key element of local officials' effort to encourage lawmakers to give TxDOT the authority to fund and build toll roads in return for future toll receipts during the 82nd Texas Legislative Session. A six-person advisory committee authorized by lawmakers, will decide which approach to building the highway would be most suitable to proposed to private companies. The committee was told that fully funding the project is not feasible.

According to a blog post by Lindenberger on Nov. 10, "The $4.7 billion project is so expensive that private investors would require about $3 billion in public money before they would be willing to develop the highway as a mixed project including new tolled lanes and reconstructed interstate lanes, new frontage roads and more. There is only about $600 million in public money from all sources available to build the road."

One funding idea, according to Lindberger's post, "...would be to build toll lanes first to create a revenue stream that would eventually help pay for additional free lanes."

Read the full post including feedback from Michael Morris, elected chair of the advisory committee and Denton County Commissioner, Hugh Coleman here.

Please continue visiting our blog and twitter for the latest news in Texas transportation.

Nov. 8th is Texas Constitutional Amendment Election Day: Prop. 4 Will Affect Texas' Transportation System

Emily — Fri, 28 Oct 2011 14:32:58 GMT

November 8, 2011 is Texas Constitutional Amendment Election Day and an important amendment related to Texas transportation will be on the ballot. Proposition 4 (HJR 63) proposes an amendment that would give counties the same bonding authority that cities already have for Transportation Reinvestment Zones (TRZ), specific zones around a transportation project that will capture the property tax increases from the project.

If approved, the amendment would add counties to the list of political entities authorized to issue bonds or notes to fund the development or redevelopment of an unproductive or underdeveloped area and pledge for repayment of the bonds or notes with the increased property taxes.

Your vote on November 8th will help determine the outcome of this proposed constitutional amendment that affects Texas' transportation system! Early voting is going on now and will continue through Friday, November 4th. Visit www.votexas.org to find out where to vote.

Texas House of Representatives Speaker Joe Straus Introduces 2011 Interim Charges

Emily — Fri, 21 Oct 2011 19:45:08 GMT

It's that time again! Yesterday (Thursday, Oct. 20), Texas House Speaker Joe Straus released a list of interim charges to the House of Representatives that outlined issues vitally important to our state's future. Straus charged House Committees with the responsibility of conducting comprehensive studies regarding each issue over the next 15 months. The results of these studies will help shape legislation considered during the 83rd Legislative Session. Click here to read the full release from the Texas House of Representatives and here to see a full list of interim charges.

Several charges were assigned to the House Committee on Transportation: One charge was to review Texas' current transportation infrastructure, consider future infrastructure needs over the next ten years and make long term recommendations to ensure its sufficiency. Additionally, the Committee was charged with "[studying] transportation funding reforms and [developing] long-term state funding recommendations..." The Committee must also investigate various means to eliminate "diversions" from Fund 6 to programs not related to transportation.

The points outlined in the charges successfully encompass many of the needs that must be considered to maintain and improve Texas' transportation system in the future. The Texas Legislature took steps to improve the system during the 82nd Legislative Session and must continue working with transportation leaders and other interested parties to ensure long-term stability in transportation infrastructure across the state.

Ted Houghton named Chairman of the Texas Transportation Commission

Emily — Fri, 07 Oct 2011 21:32:05 GMT

Thursday, Oct. 6, marked an important day for the Texas Transportation Commission: Deirdre Delisi resigned from her position as chairman of the Commission to serve as Gov. Perry's chief policy advisor for his presidential campaign. Since 2008, Delisi has been an important leader in maintaining and improving the Texas transportation system.

Today (Friday, Oct. 7), Gov. Perry named Ted Houghton as the new chairman of the Commission. Houghton, the first resident of El Paso to serve on the Commission, was first appointed to the Commission in 2003 by Gov. Perry and was reappointed in 2009. Read Houghton's full statement here.

"...Houghton brings a passionate -- and articulate -- defense of the pro-business and pro-privatization approach Perry has long championed. Houghton has been one of the fiercest advocates for an untrammeled pursuit by TxDOT of partnerships with private firms to finance and operate Texas toll roads." said Michael Lindenberger in a Transportation Blog post today.

Well said Michael. We look forward to seeing the great things Houghton will achieve as Texas Transportation Commission's chairman. He has been a true leader as a member of the Commission and will undoubtedly help ensure Texas' transportation system continues to improve and remains successful and economically viable future for all Texans.

TxDOT Names New Executive Director and Emphasizes the Need for Public Involvement in Monthly Transportation Commission Meeting

Emily — Fri, 30 Sep 2011 17:18:20 GMT

A very important announcement was made at Thursday’s monthly Texas Transportation Commission meeting: Phil Wilson is succeeding Amadeo Saenz, Jr. as TxDOT’s 19th executive director. Wilson was Texas’ former Secretary of State and is a veteran in Austin business and politics, making him a valuable addition to the Department’s leadership. Read TxDOT’s new release here.

"I am honored to be selected as the next executive director of TxDOT," Wilson said in the news release. “This is an agency with a rich history in successfully building for our future with dedicated employees. I look forward to working with the agency, Commission, Legislature and local communities on the most efficient and effective ways to build infrastructure for Texas."

Another topic of discussion was the importance of public-private partnerships and the disbursement of Proposition 12 funds for projects over the next couple of years. As we have mentioned previously, Texas’ infrastructure system got a big win when the 82nd Legislature authorized TxDOT to contract on about $3 billion in general obligation bonds for highway improvements. These bonds will help address congested highways, deteriorating bridges and improve connectivity among the state’s major metropolitan areas. Speakers at the commission meeting stressed the importance of getting the public involved in projects funded by the $3 billion in Proposition 12 bonds.

In a discussion on public-private partnerships, TxDOT Commissioner William Meadows pointed out that the success of those projects is dependent upon “overarching partnerships.” Commissioner Meadows and his staff also recommended a partner advisory committee to yield beneficial relationships that could be used to address Texas’ infrastructure needs.

Continued use of the Proposition 12 funds and public-private partnerships for Texas’ growing infrastructure needs are a strong step toward improving our state’s transportation system. As suggested at yesterday’s commission meeting, TxDOT wants to see Texans get involved in transportation projects across the state. Click here to find numerous opportunities to stay engaged in transportation projects, issues and forums going on in your area.

North Texas Tollway Authority waives right to develop I-35E project

Emily — Fri, 23 Sep 2011 22:37:22 GMT

The North Texas Tollway Authority (NTTA) board voted unanimously this week to waive their rights to develop the Interstate 35E project between Denton and Dallas, which would have been the largest and most costly project in the organization’s history. Because the project is so expansive, it would not only take NTTA several decades to pay back the loans on the project, but would also require considerable expenses for maintenance and operation costs. Based on the enormous funds needed to sustain a development like this, this waive of rights will allow private bids for the construction project.

Michael Morris, the North Central Texas Council of Governments transportation chief, says regardless of how funds are collected, financial support for an undertaking like this will be a challenge. With $500 million in public money, TxDOT’s role will be to attract private firms to construct the tolled portions of the new project and a small portion of the main lanes. Ideally, the revenue from the upgraded tollway would finance the remainder of the improvements.

Stretching 29 miles, covering two tolled lanes in each direction, two to three frontage roads in each direction and up to four lanes of rebuilt free interstate lanes, this expansion project has been a long awaited improvement for the Dallas to Denton area. By expanding and improving the current infrastructure through privatization, roadways will be improved long term, alleviating congestion and providing support for maintenance costs.

Click here to read more in a Dallas Morning News Transportation Blog post.

Obama Speaks about Infrastructure Spending in Address to Congress

Emily — Fri, 09 Sep 2011 19:58:08 GMT

On Thursday, September 9^th, Pres. Obama presented to Congress – and the entire nation – his plan to stimulate job growth and economic stability in the United States. In his speech, he introduced the "American Jobs Act," a $447 billion plan to increase jobs and promote economic growth. The plans he laid out included a push to create a National Infrastructure Bank to help create jobs for Americans - a plan modeled after the one proposed by Sen. John Kerry (D-Mass.), Sen. Kay Bailey Hutchinson (R-Texas) and Sen. Mark Warner (D- Va.).

Here's a glimpse of some of the feedback the President is getting on his proposal to create a National Infrastructure Bank:

Sen. John Kerry supports his proposal. A Bond Buyer article quoted him saying, “There’s almost $200 billion in private capital sitting on the sidelines that could be invested in our infrastructure, but it will take this bank to unlock private investment for bridges, roads, and rail.”

On the other hand, Rep. John Mica (R-Fla.), chairman of the House Transportation and Infrastructure Committee, opposed the proposal, indicating that states should create their own infrastructure banks to ensure flexibility to design and implement transportation projects specific to their area.

“While the President reconfirmed that our highways are clogged and our skies are congested, his well delivered address provided only one specific recommendation for building our nation’s infrastructure," Mica said. “Unfortunately, a National Infrastructure Bank run by Washington bureaucrats requiring Washington approval and Washington red tape is moving in the wrong direction. A better plan to improve infrastructure is to empower our states, 33 of which already have state infrastructure banks.”

The proposal to create a National Infrastructure bank isn't the only federal transportation issue occurring in Congress right now: A Senate committee approved a short-term extension of the highway spending bill on Thursday, Sept. 8, that authorizes Congress to collect the federal gas tax. This extension will be the eighth for the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) that expired in 2009.

Transportation leaders want to see a bill that presents long-term solutions to the infrastructure challenges facing our nation, but the House and Senate are proposing very different versions of the bill. The House proposal calls for $235 billion over six years on transportation, and the Senate version calls for $109 billion over two years. Despite these differences, both the Senate and the House know that the bill must pass before it expires on Sept. 30.

In addition to pushing for a short-term extension of the bill, several members of Congress are emphasizing the importance of also passing a long-term extension, proposed by the Senate to help maintain and improve transportation in the U.S. and create jobs.

Sen. James Infohe (R-Okla.), said, "What matters is passing a two-year bill. If we fail to enact an extension prior to the end of this fiscal year, thousands of highway projects will be at risk of being stopped in their tracks, which would threaten tens of thousands of jobs."

Read more about the infrastructure bill here.

Just as in Texas, proper usage of United States infrastructure spending is imperative to keeping roads and highways safe and efficient. The nation - and each individual state - has an important job to do: ensure the best, most efficient, and economically sustainable transportation and infrastructure system for its residents. We will keep you updated as more news becomes available on this legislation.

San Antonio Express-News Editorial Board Re-Confirms Texas' Transportation Needs

Emily — Wed, 31 Aug 2011 20:22:22 GMT

Last week, our blog post titled "2nd Annual State of Transportation Luncheon - A Call-to-Action for Texans" focused on an Austin Chamber transportation luncheon where keynote speaker Deirdre Delisi and other transportation experts highlighted the growing transportation funding needs facing our state. These experts called on Texans to take action to ensure our state's transportation system is properly funded for the future.

Check out this recent editorial in the San Antonio Express-News which confronts Texas' transportation issue head-on, frankly stating that "lawmakers shouldn't play games with dedicated revenues for roads and highways. Making necessary investments in transportation infrastructure is fiscally sound and economically prudent."

On average, 1,200 new residents move to Texas every day. This rapidly increasing population will take quite a toll on Texas roads. Without additional transportation investment, road conditions and congestion will continue to degrade Texas' transportation system and consequently Texans' quality of life. Additionally, the San Antonio Express-News reported that "this year for the first time in history, the Legislature appropriated more funds to service debt than to actually build new roads — $850 million versus $575 million."

According to C. Michael Walton, University of Texas engineering professor and chair of the 2030 Committee, if Texas doesn't increase transportation funding, average Texas households can expect to pay $6,100 per year between now and 2035 in more travel time, more fuel usage and more vehicle maintenance.

Once again, Texas' transportation system crisis has been publicly brought to our attention. It is imperative that lawmakers continue to take a hard look at transportation needs throughout the interim and return to the Capitol in 2013 ready to make important decisions on innovative funding solutions to maintain and improve our state's transportation system.

What will you do to help ensure Texas' transportation system is properly funded for the future?

Read the full San Antonio Express-News editorial here.

2nd Annual State of Transportation Luncheon - A Call-to-Action for Texans

Emily — Fri, 26 Aug 2011 19:18:45 GMT

Hundreds of transportation leaders and advocates gathered Wednesday, Aug. 24, for the 2nd Annual State of Transportation Luncheon in Austin. The luncheon, featuring keynote speaker, Diedre Delisi, clearly laid out Texas' muggy transportation situation. As the chair of the Texas Transportation Commission and with more than 12 years experience in governmental policy, Delisi is well-versed in Texas transportation issues and brings a fresh and insightful perspective in her discussions about the needs of Texas' transportation system.

In her address, Delisi discussed a recent report released by the 2030 committee. We have discussed this report on our blog before: Basically, the Texas transportation system currently needs $315 billion just to maintain current road conditions across the state. This shocking number brings to light the dire need to derive additional solutions and make substantial changes to Texas' transportation funding in order to maintain and hopefully improve Texas roads.

Speaking of innovative solutions - Delisi also pointed out the 11 highway projects that were recently approved for funding through P3s across the state. This is a step in the right direction, but she emphasized the need to also consider other alternative funding solutions such as capturing existing highway revenues, paying additional fees or increasing the gas tax.

Delisi concluded her address with a call-to-action to all Texans: She asked us to get involved by helping to champion solutions and spread the word about transportation needs across the state. If you want to be a part of helping to improve Texas' transportation system, one way to get involved is to attend one of TxDOT's statewide public involvement meetings taking place in all 25 TxDOT district offices across the state. Click here to learn more about those meetings.

Following Delisi's speech, panelists Bobby Jenkins, owner and president of ABC Home and Commercial Services; Terence Spielman, senior director of product development and general manager for Austin PayPal; and Ken Allen, retired senior vice president of supply chain and logistics for HEB and member of the 2030 Committee, provided insights on how Texas' deteriorating transportation system will affect their business. Each of the panelists - leaders of businesses where transportation infrastructure is key to the company's success - understand the importance of an efficient transportation system in our state.

For example, Bobby Jenkins (ABC Home and Commercial Services) pointed out company truck drivers' frustration with congestion and the significant costs to the company when its trucks sit in traffic.

"Day-to-day transportation is absolutely a core fundamental issue that we deal with," said Jenkins.

Additionally, Ken Allen stated that HEB is very concerned about the future infrastructure needs within our state.

"Our population is growing and yet our infrastructure is growing slower than we feel like we need," said Allen.

Terence Spielman spoke about the transportation system in Austin as a means of getting his employees to and from work. Paypal is growing tremendously and Spielman emphasized the need for an efficient transportation system and the importance of providing alternative methods to maintain and even improve transportation for PayPal employees.

To wrap up the luncheon, Terry Mitchell, board member of the Austin Chamber, chair of Take on Traffic, and president of Momark, provided the audience with a transportation strategy announcement.

"It all starts with a healthy economy," said Mitchell. "We must plan for the future... [and] find new ways of moving people. Let's take on traffic!"

SH 146 expansion to influence economic growth

Emily — Fri, 19 Aug 2011 20:49:52 GMT

TxDOT officials, including Marc W. Shepherd and Cory Taylor, Texas State Rep. John Otto and other supporters gathered on Tuesday, August 16 to celebrate the ribbon cutting of a five lane expansion on SH 146 connecting Dayton to Chambers County. The completion of this lane expansion will help improve traffic congestion and reduce the number of deaths associated with accidents on the highway. Funded by Proposition 14, Rep. Otto helped raise $22 million to complete the project.

In a 10-year period, 35 deaths occurred between Dayton and Mont Belvieu. Additionally, some people sat in traffic for 14 hours on the highway as they evacuated for Hurricane Rita. Through the expansion of this highway, fewer accidents will occur and residents will be able to more efficiently evacuate prior to a hurricane.

According to Rep. Otto, this was a safety and hurricane evacuation issue and with the improvements made in the last couple of years, the area will benefit economically by attracting additional businesses as well. “We are glad to have a safe corridor for everyone to travel on,” said Otto.

“We are pleased to see the completion of the improvements to Hwy 146, not only for the safety aspect, but also the overall positive economic impact this will have on Dayton,” said Tammy Pratka, executive director of the Dayton Chamber of Commerce.

The expansion will attract additional business to the area, thus creating a positive economic impact for companies. As the new highway will provide additional lanes for traveling, it also allows for safer transportation of goods and products among a major thoroughfare.

The completion of this transportation project is another step toward improving Texas’ transportation system. With the help of legislation passed during the 2011 Legislative Session, more projects can be completed across the state and Texans can continue enjoying good, safe Texas roads.

To read more on the expansion of Hwy 146, click here, here, and here.

Improvements Essential for Texas 105

Emily — Wed, 10 Aug 2011 21:58:48 GMT

In a search to find short-term techniques to improve the safety of Texas 105, the Houston-Galveston Area Council (HGAC) has been conducting a study the last three years to help analyze the problem areas of the highway. As traffic increases at an alarming rate, growing by 4.6 percent in the past 11 years, it is imperative that work is done to improve the highway in order to provide safe and reliable transportation for drivers.

With only two, narrow lanes for traffic and small shoulder space available, the highway is difficult for drivers to navigate and drive on safely. The study confirmed that from 2007 to 2009, over 100 wrecks have occurred on the 15 mile stretch from East Loop 336 to U.S. 59. The high number of accidents on Texas 105 serves as another example of how our Texas highway systems are in desperate need of improvement. Adjustments to Texas’ transportation infrastructure are essential as Texas businesses depend on reliable roads and highways to transport consumer goods and services.

Montgomery County’s Precinct 4 Commissioner Ed Rinehart says sooner or later something must be done to improve Texas 105, especially the addition of left-turn lanes and passing lanes. According to the HGAC steering committee, wrecks along the highway will continue to be a problem without a turn lane. Now that problems have been identified and analyzed, our Texas leaders must take action and address these issues as drivers depend on reliable transportation daily. It is essential that updates are made in order to avoid additional crashes and provide safe highways for Texans who travel on Texas 105 regularly.

To read the full story detailing the study of Texas 105, please click here.

Texas is Not Alone in the Infrastructure Funding Crisis

Emily — Fri, 29 Jul 2011 22:06:01 GMT

Texas faces major hurdles in transportation infrastructure funding, and according to a recent article, Worsening Roads Will Cost US Billions of dollars as well. Worsening infrastructure conditions could cost the nation $2.7 trillion in lost productivity, income and trade in the next thirty years, according to a civil engineering report released Wednesday, July 27.

The report from The American Society of Civil Engineers said the country needs to invest about $220 billion annually in infrastructure just to maintain “minimum tolerable conditions.” And the gap between federal funding and infrastructure needs is rapidly increasing.

The gap will only worsen with the current rate of infrastructure investment, according to the study. Funding gaps for rail and transit will jump from the current 41 percent to 55 percent in 2040, and the highway funding gap from 48 percent to 54 percent. Those gaps come at a high cost to individuals and business, piling on additional expenses such as vehicle repair costs, wasted time in traffic and inefficiently transported exports.

By 2040, inefficient traffic and capital works conditions could cost Americans up to $2.97 trillion – up from $130 billion in 2010. Additionally, the study said a staggering 400,000 jobs could be lost without improvement to the transportation system.

The Texas 2030 Committee conducted a similar study to project the future impact of the state’s worsening infrastructure conditions. The report revealed that Texas alone needs to invest $170 billion by 2035 in order to maintain 2010 conditions. With a population projected to grow at twice the U.S. rate, our state must continue to work to find alternative funding solutions to afford new roads and make repairs to existing ones.

Texas took steps during the 82nd Legislative Session to find both long and short-term alternative funding solutions for the state’s increasing infrastructure needs, including the reauthorization of public-private partnerships and expanded bonding authority for counties. It is clear that both Texas and U.S. leaders must continue to investigate alternative funding options to avoid job and revenue losses and to protect national and Texas productivity and economic stability.

Read the full article on CNBC.com here.

You can also download the news release and the full report here.

The Grand Parkway and IH-35E P3 Projects to Pave the Way for Future P3s in Texas

Emily — Mon, 11 Jul 2011 19:56:43 GMT

According to "Texas has a new P3 pipeline but its success hinges on successful execution of the first two deals" by Mick Bowen of InfraAmericas, the future development of public-private partnership (P3) highway projects in Texas depends on the success of the first two major projects: SH 99 Grand Parkway in Houston and IH-35E Managed Lanes in Denton.

In mid-June, Gov. Rick Perry signed the TxDOT Sunset Bill, authorizing TxDOT to enter into P3s for 11 highway projects across the state. So far TxDOT has issued requests for information (RFI) documents for two of the eleven projects: Grand Parkway and IH-35E. According to D.J. Gribbin, a managing director at Macquarine Capital, the Texas Department of Transportation should focus on getting the first project going to show that the project can, in fact, bring in million of investment dollars. According to Jose Luis Vittor, a partner at Hogan Lovells law firm, this will "trigger a chain reaction" for the development of the other projects under consideration.

TxDOT is set to receive responses to the two RFIs next month and is expected to issue requests for quotation (RFQ) by the end of August. Then, the department will issue requests for proposal (RFP) to bidders for the projects in early December to receive responses by February 2012. In June 2012, TxDOT plans to announce a preferred bidder for the Grand Parkway and in July 2012, it plans to announce a preferred bidder for IH-35E. Read the full article here.

It looks like the process of building new roads using this innovative funding method is off to a great start. We will watch carefully as these projects advance and as new public-private partnership highway projects unfold across Texas.

Recent Report Acknowledges DFW Area as a National Leader in P3s

Emily — Wed, 06 Jul 2011 19:51:00 GMT

As we know, Texas is facing a transportation funding crisis and must take immediate steps to address this rapidly growing problem in order to avoid the detioriation of the state’s transportations system. A recent report by the Urban Land Institute (ULI), “Infrastructure 2011: A Strategic Priority,” shows that infrastructure funding is also an immediate priority for countries all over the world.

In a recent D Magazine RealPoints blog entry, Mike Berry, president of Hillwood Properties in the Dallas-Fort Worth area, discussed this report and how it relates to the current state of transportation infrastructure funding in North Texas.

The ULI report acknowledged the Dallas-Fort Worth area as national leader in P3s and approved of the transportation construction projects that are developing in the area. However, it also states that without long-term funding solutions, infrastructure improvements will continue to slow and damage Texas’ ability to compete globally.

“Now, more than, ever, we have to find a stable solution that will continually fund our transportation infrastructure,” Barry states. “It’s the backbone to our economy and our society. Without it, we can’t stand up tall to compete with the rest of the world.”

Fortunately, the Texas Legislature took steps in 2011 to address Texas’ transportation funding crisis by re-authorizing TxDOT to enter into P3s for transportation projects across the state, including projects in the DFW area. Barry explains that despite initiatives by the Legislature, many years of inadequate funding for Texas transportation will damage the state’s ability to afford new roads or major repairs to existing ones, according to a recent 2030 committee report (which we have discussed previously). In this case, we are once again reminded of the dire need for long-term funding solutions to keep Texas' transportation system globally competitive.

The ULI report makes several overall recommendations including focusing attention on making necessary repairs and upgrades to existing systems, developing a national infrastructure plan, concentrating spending major metropolitan areas, and phasing in user fees to help fund the initiatives to improve infrastructure nationwide.

“It’s still a tough road ahead for transportation projects” Berry says. “…I urge other business leaders and citizens to join me in calling for long-term solutions at both the state and federal level.”

To read the entire D Magazine RealPoints blog entry by Mike Berry, click here.

Public-Private Partnerships Beginning to Develop for Texas Transportation Projects in Texas

Emily — Thu, 23 Jun 2011 19:25:19 GMT

Gov. Rick Perry signed Senate Bill 1420 into law on June 17, 2011. This law re-authorizes TxDOT to enter into public-private partnerships (P3s) for certain transportation projects across the state. On June 10, The Texas Department of Transportation issued Requests for Information to begin development strategies for P3s on I-35E managed lanes in Dallas and the Grand Parkway in Houston.

“The general concept behind this public-private agreement is that a private entity will basically take some of the risk and put their money behind it,” said Harris County Judge Ed Emmett. “The idea… is to have companies present creative ideas about what they would do to help TxDOT build these roads more quickly.”

The Requests for Information on the Grand Parkway indicate that TxDOT is interested in using P3s for the maintenance and operations for certain segments along the highway. Additionally, the potential P3 will cover financing, development, construction, operation and maintenance for part or all of other segments along the highway. In total, 61 of the 180-mile project would be covered by P3s.

“Issuing these RFIs now will allow us to gather valuable information that will help to accelerate development of these vitally important projects,” said Director of TxDOT’s Turnpike Authority Division Mark Tomlinson in a recent news release.

P3s are the kind of innovative solutions Texas needs to address the growing infrastructure funding challenges throughout the state. Thankfully, the state is taking steps toward improving Texas’ transportation system by passing a law that re-authorizes TxDOT to enter into P3s for the development of highways across Texas.

Following responses to the RFIs due by July 6, requests for qualifications and proposals from individual firms or teams with experience in developing large transportation infrastructure projects could continue through summer and fall.

If all goes smoothly, the conditional award of a P3 agreement could be approved in one year. Both the state and taxpayers would incur fewer costs for more efficient and expedient transportation infrastructure improvements.

Read the full article in the Houston Chronicle here.

Op-ed highlights Texas’ continued need for transportation funding

Emily — Fri, 10 Jun 2011 17:56:00 GMT

Yesterday, the Corpus Christi Caller-Times posted an op-ed by Michael Walton, chairman of the 2030 Committee, a volunteer committee of business leaders given the charge of providing an independent, authoritative assessment of Texas' transportation infrastructure and mobility needs. The op-ed discusses the findings of the Committee’s second report released in this Spring - It's About Time: Investing in Transportation to Keep Texas Economically Competitive - and asseses transportation progress made during the 82nd Legislative Session.

In the op-ed, Walton warns that the current level of funding for Texas' transportation system “is no longer sufficient to keep pace” with our state's rapid growth and increasing construction and maintenance costs. He points out that although our state's lawmakers began to take steps to improve Texas' transportation system during the 82nd Legislative Session, we still need to explore additional funding solutions for Texas highways. He - and the 2030 committee along with numerous other transportation leaders - understands that there is significant value to increasing investment in our states transportation system.

With improved roads that will result from increased investment in the transportation system, Walton emphasizes that Texas families will save money that would otherwise be spent sitting in traffic, paying for more tanks of gas, and dealing with other expenses related to worsening road conditions throughout the state.

Walton finishes the op-ed with an important proclamation: "We can avoid a system that's falling apart and the resulting increases in vehicle use and maintenance costs by identifying and implementing innovative solutions to increase investment in our state's transportation system."

As our state continues to grow, the need for more effective transportation funding will continue to increase. Our state and local leaders must continue to work together to identify additional long-term funding solutions that address the state's growing transportation funding challenges.

Read the full op-ed in the Corpus Christi Caller-Times here and the full report by the 2030 Committee here.

Good Progress Made with Public-Private Partnerships and other Transportation Funding in 2011 Legislative Session

Emily — Mon, 06 Jun 2011 15:41:00 GMT

The 82nd Legislative Session was an important time for Texas transportation. Several important pieces of legislation were passed that will help address the critical funding needs facing Texas' transportation system.

During a time of large budget deficits facing the state this session, lawmakers took steps to help improve Texas' deteriorating transportation system. The progress made in transportation policy this session will help keep our state prosperous and economically competitive.

We appreciate the dedication and hard work of the Governor, lawmakers including Sen. Tommy Williams and Rep. Larry Phillips, and transportation leaders such as Deirdre Delisi, chair of the Texas Transportation Commission, who constantly seek to provide a sustainable quality of life for our state's future generations by working to improve Texas' transportation system.

Below are several legislative transportation highlights of the 82nd Legislative Session's 140 day period:

TxDOT Sunset

After years of hard work and dedication by transportation leaders across the state, the TxDOT Sunset bill (SB 1420) was passed out of the legislature in the last days of the session. The bill ensures that TxDOT will continue operation for the next four years.

Through this legislation, lawmakers also addressed the critical need for innovative funding solutions for the construction of Texas roads by re-authorizing TxDOT to enter public-private partnerships (P3s) to fund certain transportation projects across the state. This re-authorization will help improve and expand Texas' transportation system to avoid deterioration and overcrowding of highways throughout Texas.

The final TxDOT Sunset bill included P3 authority for several important Texas highway projects including the North Tarrant Expressway in Fort Worth, Grand Parkway in Houston, Interstate 35E in Dallas and State Highway 183 in Dallas.

Click here to read a news release by Rep. Harper-Brown on the passage of the bill and here to read an article in the Dallas Business Journal.

Proposition 12 Bonds

The 2011 state budget includes authorization to issue the remaining $3 billion of Proposition 12 bonds by funding interest payments on them in the next biennium. With the help of these bonds, there is now enough revenue for new projects until at least 2014.

Although this is only a short term solution for transportation funding, the authorization of this bond authority shows that lawmakers understand the importance of utilizing additional funding solutions to help maintain Texas' transportation system.

Other Bond Financing

The legislature passed a bill (HJR 63) proposing a constitutional amendment that gives counties the same bonding authority that cities already have for transportation reinvestment zones (TRZ). This provides a means to expand and improve transportation infrastructure across Texas.

This legislation also creates a way to build transportation infrastructure without raising taxes and promotes local control by allowing local elected officials to decide whether to use a TRZ for a project.

Texans will be able to vote on the proposed constitutional amendment in the November 8 election.

Next Steps for Texas Transportation...

Although several important transportation bills were passed during the 82nd Legislative Session, our state and local leaders must continue to work together to identify additional long-term innovative solutions that address our state's growing transportation funding challenges. Additional funding options will also help improve traffic congestion and road maintenance problems across the state to ensure a high-quality transportation system for Texas.

The transportation bills passed this session are a major step toward addressing transportation needs in Texas - but we still have work to do to ensure our state's transportation system improves in the coming years.