TxDOT's New Plan for Toll-Road Funding

Following the recent expiration of TxDOT’s ability to enter into privately financed toll-road contracts or comprehensive development agreements (CDAs) on Aug. 31, the Texas Transportation Commission is finding new ideas for the $4 billion expansion of I-35E between Dallas and Denton.

 

The newest idea for road construction is called pass-through toll financing. It is similar to private toll-road deals, but does not require drivers to pay individual tolls. This method involves private companies using their own money to build a state road, with a small amount of tax dollars. Texas will then make payments to the firm based on the amount of traffic that uses the road. So, the more vehicles that use the road, the more money the private company will earn.

 

Although this method has only been used for small state roads in the past, it has a chance for success on state highways with only a few rule changes in the department. The pass-through toll method could speed up construction for new roads, which was recently slowed after the Legislature failed to extend TxDOT’s ability to enter into CDAs. 
 

Ted Houghton, Texas Transportation Commission member of El Paso, argued that options are running low.

 

"We've got to use all of these innovative ways of building highways or we won't be building," he said. "It's a fact of life. If you want us to build roads, then we are going to move forward using these kinds of tools."

 

To read the full article in Dallas Morning News, CLICK HERE.

 
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