DEPARTMENT: Transportation and Capital Improvements
DEPARTMENT HEAD: Mike Frisbie
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Resolution in support of a constitutional amendment to increase State highway funding.
SUMMARY:
This resolution indicates support of a constitutional amendment to increase State highway funding by dedicating a portion of the oil and gas production tax revenue to the state highway fund, for non-toll projects.
BACKGROUND INFORMATION:
During the 83rd Legislative Session in 2013, the Texas Legislature approved Senate Joint Resolution (SJR) 1, proposing a constitutional amendment to dedicate a portion of the oil and gas production tax revenue to the state highway fund, for non-toll highway projects. The amendment, on the November 4, 2014 state ballot, will read as follows:
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.
The amendment does not constitute a tax increase. Rather, existing oil and gas production tax revenue would be redirected. Currently, 25% of the oil and gas production tax revenue is earmarked for the State's Education Fund and the remaining 75% of the revenue is earmarked for the State's Economic Stabilization Fund, also known as the Rainy Day Fund. If voters approve the constitutional amendment, half or 37.5% of the Rainy Day Fund, estimated at $1.4 billion, will be redirected to the State Highway Fund. The redirected revenue would be allocated throughout the state by TxDOT, consistent with existing formulas outlined by the Transportation Committee.
The City actively supported SJR 1 during the 83rd Legislative Session in 2013. Additional funding to improve mobility and to maintain, expand and improve transportation infrastructure was an initiative in the City's 83rd ...
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