Here's Hoping: Gas Tax Indexing Would Be Only Part of Funding Puzzle
Key points from Wear's article:
- Texas' current 20-cents per gallon gas tax was set in 1991 and hasn't been changed since
- The gas tax has lost more than half its purchasing power because of inflation
- The state is in a budget crunch and we have huge transportation infrastructure funding needs over the next 20 years: about $313 billion worth according to the 2030 Committee
How Texas compares to other states:
- Only 13 states have lower gas taxes than Texas
- 14 states have gas taxes set at 30-cents or more
- New York 's gas tax is the highest: more than 40 cents
- 12 states have variable gas tax rates (like Senator Carona's proposal)
- 11 states have local gas taxes
Texas has over 192,000 lane miles maintained by TxDOT (using local, state and federal funding), thousands more than any other state in the country, yet our gas tax ranks lower than 36 other states.
We support Senator Carona's proposal to index the state's gas tax to construction inflation (SB 217), but indexing or increasing the gas tax will still not completely bridge our funding gap: Texas will still need increased funds from other sources. It's important to note that Senator Carona's proposed SB 217 sets a cap on the increase at 5% per year, yet construction inflation has increased 66% over the past 5 years.
Like we've mentioned before, there are many options for the Legislature to consider this Session that must not be ruled out. Lawmakers must take a serious look at how they will allow CDAs to continue operating, giving more fund-raising authority to local governments, as well as ending Fund 6 (gas taxes) diversions.
What about the federal stimulus?
Stimulus funds will help TxDOT finish many small local projects and create jobs, yet it won't help the state plan for and execute the vital longer-term projects that will help increase mobility in highly-congested urban areas. It is estimated Texas will receive just over $2 billion in stimulus funding, and as you can imagine, this money comes with many strings attached.
TxDOT Commissioner Ted Houghton has some additional thoughts on the federal economic stimulus: Stretching taxpayer dollars is a stimulating concept, Fort Worth Star-Telegram


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