Overview

• Secure legislative authority for local jurisdictions to hold elections to increase regional transportation funding.
• Improve the collection and analysis of traffic data to reduce congestion and improve mobility.
• Host annual InterCity visit providing Chamber members the opportunity to network with community leaders and learn regional best practices.
• Monitor implications of possible non-attainment designation of Travis County in 2010 by the Environmental Protection Agency.

Too often, our dialogue about transportation turns into an argument about who's to blame for regional gridlock. But the story behind our mobility crisis is really quite simple: Central Texas has grown too fast for our transportation system to keep up. Here's how:

Population growth

Central Texas doubles in population about every 20 years. Back in 1991 – the last time the Legislature raised the state gas tax that funds highway projects – the Austin metro area had about 800,000 people. Today's it's more like 1.5 million. By 2011 – five years from now – it'll be closer to 1.8 million. That's like adding three Round Rocks to the region in just five years.

More cars, more driving

Right now, there are about 4 cars for every 5 people in Central Texas. In five years, there will be at least another 130,000 cars on the road. And those cars are driving farther and longer as the region expands into the surrounding counties. Right now, Central Texans are spending nearly an hour every week – 51 hours a year – stuck in traffic, and that figure is rising. And our roads are becoming less safe. Our rate of traffic fatalities is 45% above the national average.

New infrastructure

Costs too much, takes too long. The old pay-as-you-go system of highway building is just too slow to keep up with this growth. That's because we simply don't have enough money for our transportation system. The gap between what Central Texas has to spend and the minimum cost of the new highways and transit systems it needs is nearly $2.7 billion. There are more than $4.5 billion in road and transit projects waiting to happen in Central Texas for lack of resources.

Current funding sources inadequate

Federal, state, and local funding sources required to build and maintain our transportation system are inadequate, rapidly eroding in value, and politically at risk. With troubling news of shortfalls from the federal government and the Texas Department of Transportation, the time has come to allow communities the option to generate additional funding locally for transportation projects to help meet our increasing mobility needs.

In Central Texas, our state's traditional pay-as-you-go, gas-tax-funded highway system is breaking down. What went wrong? Here's what:

The shrinking gas tax

The state's motor fuels tax (the "gas tax") hasn't been increased in 15 years. The federal portion of the tax hasn't been increased in 10 years. Now, the state's population growth has meant that more gas is being sold. But increasing fuel efficiency and less driving means that the amount of revenue being raised by the gas tax isn't keeping up with our transportation funding needs. Nor is it keeping up with inflation. Back in 1991, when the state tax was last raised, Texas received $1.34 in revenue for every 100 miles traveled. In constant dollars, it now receives only 56 cents.

Other demands for funds

The money that is being raised through fuel taxes isn't all spent on transportation – one-quarter goes to schools (under the Texas constitution), and one-quarter has been directed by the Legislature to fund other agencies. State fuel taxes account for less than 20% of the Texas Dept. of Transportation's budget. A larger share – 38% – comes from federal fuel taxes, but that funding has been cut five times just in the last 12 months. On the federal level, Texas is a "donor state" – for every dollar in federal gas tax we collect and send to D.C., we only get back between 70 and 90 cents.

An aging road network

Many of the roads we drive on every day are between 40 and 70 years old. That's why more than 40% of TxDOT's budget (twice what the agency receives in state gas tax revenue) goes to maintenance. And much of the money that goes to "building" roads actually goes to rebuilding existing roads and bridges.

Increasing construction costs

From 1997 to 2005, construction costs went up 37% – about 4% a year. Since 2005, they've gone up 62% – thanks to demands on the world construction market ranging from the Chinese economic boom to Hurricanes Katrina and Rita. Given that it can take years to plan and build highways, these cost increases are a huge, huge problem.

Other taxes are maxed out

Transit service is funded with a one-cent sales tax. Property taxes are used to fund city and county road projects, but these funds are also stretched to the limit throughout most of Central Texas

Decreasing funds available

The depletion of the federal Highway Trust Fund in 2008 led to a disruption in highway reimbursements to the states and created uncertainty in the current federal-aid highway program. An incomplete financial picture from the Texas Department of Transportation and instability in the credit market have also contributed to a lack of government resources for our transportation infrastructure.

To build out a comprehensive transportation system that actually reduces traffic congestion in Central Texas by 2030, we need to find at least $12.7 billion in funding beyond what we have right now. That's about $635 million a year for the next 20 years to Take On Traffic. Where will that money come from?

The fact is that no single tool is going to get the job done. We need to use every current tool in the toolbox to find the funds to Take On Traffic and create the comprehensive regional transportation system that Central Texas needs, and we should seek to develop additional funding tools.

Here are the current options available to Central Texas:

Fuel taxes

Currently, the combined state and federal fuel tax is 38.4 cents per gallon. To Take On Traffic with fuel taxes alone would require raising this to between $1.20 and $1.77 a gallon – on top of the price of gas itself, which is likely to go up. The exact number depends on whether this additional fuel tax is implemented statewide or locally, if and whether it's indexed to inflation or to increasing construction costs, and the degree to which increased fuel efficiency and decreased driving impacts fuel tax revenue.

Sales taxes

Right now, state law limits the combined sales tax paid in local communities. Assuming that Texas allows regions to raise this limit to fund transportation improvements, our current 8.25% sales tax would have to increase to at least 11.75%, and maybe as high as 13.87%, to raise the required funding to Take On Traffic. That means adding between $3.50 and $5.62 to every $100 spent. Sales tax is also a highly volatile revenue source, going up and down with the economic cycle, which has already had an impact on transportation funding by the cities, counties, and Capital Metro.

Property taxes

Bonds repaid with property taxes are the main source of revenue for city streets and county roads in Central Texas. To Take on Traffic, including state and national (interstate) roads with property taxes alone would require raising taxes in Travis, Williamson, and Hays Counties by between 63 cents and 98 cents per $100 valuation. (By comparison, the current City of Austin tax rate is 41 cents.) That means adding between $1260 and $2000 a year to the current tax bill for a $200,000 home.

Tolls, fares and fees

Bus fares collected by Capital Metro, vehicle registration fees collected by the state, impact fees collected by the cities, and tolls are all user fees. They give citizens a choice about how much they want to pay to support the roads and systems that they use, and they attach a direct revenue stream for transportation that doesn't have to compete with other needs. Also, because tolls allow new roads and lanes to be built faster – much faster – using them to fund projects helps beat the inflation cycle and keep overall costs down.

For years, some of our more vocal neighbors have fought against new roads, or toll roads, or extending bus service, or building rail. But the fact is we need all of these to meet the needs of our dynamic, fast-growing region. We've found that a solid majority of Central Texans support this vision of a comprehensive regional system.

A comprehensive system also allows Central Texas to adopt other strategies for creating a healthy, sustainable and prosperous region. From sidewalks, trails and bike lanes to new transit-oriented urban villages, these strategies can enrich our lives and add value to our transportation investments.

New roads

We need to move forward with building new roads, whether or not they're tolled. We especially need to keep up with the demand being created by residential growth in places like eastern Travis and Williamson counties. Many of these new routes are city and county roads supported by local tax dollars.

Toll roads and lanes

Tolling is a sound option both for new highways like SH 130 and for expanding existing corridors like U.S. 290 East. Toll revenue allows us to build these roads faster while maintaining local control and implementing a transportation vision that's unique to Central Texas. It also allows us to make needed investments without hurting the regional economy and overly burdening people who don't use these roads.

Public transportation

New express and rapid bus service – including routes that use new roads and toll roads – can help make a huge difference for people who are now stuck in traffic. Dedicated bus lanes and new technology can help make the bus a real alternative to traffic, not just in the urban core but throughout the region.

Passenger rail

New rail systems have the potential to shape future growth and create choices that aren't possible if we just rely on highways. Central Texas already has rail corridors that can be used for passenger service linking the region's cities, connecting to local bus or streetcar service and reducing the need to drive. Rail – both passenger and freight – can also help connect Central Texans to the rest of the state and nation, reducing traffic on our major routes even more.