keeping texas in business. texas has a long legacy of good roads symbol of our economic prosperity,...

Keeping Texas in Business

• Texas has a long legacy of good roads

• Symbol of our economic prosperity, attracting jobs and people to the State

• In part, our congestion is a byproduct of the state’s “wide open for business” successes

• Transportation in Texas is stretched to the limit, and the news gets worse

• Don’t let those orange barrels fool you

• In 2015, we will be out of money for new roads

At stake is the economic health of Texas

INCREASED NEW JOBS/ EFFICIENT TRADE BUSINESSES SHIPPING

With congestion

Without congestion

Business Cost of Congestion

Distance traveled to connect with customers in 30 minutes

Missed opportunity

Missed opportunity

With congestion

Without congestion

Business Cost of Congestion

Commuting distance for employees

in 1 hour

Missed opportunity

Missed opportunity

What do we

Know?Transportation funding has not kept pace with demand

How do we pay for our roads?

2014 Revenue

Debt financing has now surpassed revenue from the state gas tax

National Comparison

How Texas ranks

Fuel Taxes

Vehicle Registration Fees

Cost of Vehicle Ownership

29th

19th

44th

high

low

high

low

high

low

What’s the problem?

$2.1 billion in truck freight moving costs

Congestion in Texas each year

472 million extra hours of travel time

$10.1 billion in delay and wasted fuel costs

How did we get in this hole?

It’s all about supply and demand

125%172%

19%

238%

population vehicles highway use highway space

How did we get in this hole?

Financing for our roads is stuck back in the last century

$1.10

$3.08

Gallon of gasoline

Fuel Tax Portion $0.38

1991 2014

How did we get in this hole?

Financingfor our roads is stuck back in the last century

$1.12

$3.41

Gallon of Diesel

Fuel Tax Portion $0.44

1994 2014

Since 1991, the cost of everyday goods has

about doubled

How did we get in this hole?

So has the cost of building roads

Purchasing Power of the Motor Fuels TaxTax Rate Adjusted by Inflation in Roadway Construction Costs

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

14.1

13.3

18.4

16.2

15.7

15.3

14.8

13.6

12.8

12.8

12.1

12.5

12.4

11.0 8.8 7.7

7.9 7.0

8.9

9.1

8.5 7.2

20.0

18.9

18.1 17.6

17.1

16.6

16.1 14.8

13.9

13.9

13.1

13.6

13.5 12.0

9.6 8.4

8.5 7.6

9.6

9.9 9.2 7.8

Effective State Tax RateEffective Federal Tax Rate

Cent

s Per

Gal

lon

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 201114

16

18

20

22

24

500

550

600

650

700

750Fuel Efficiency (in MPG) Gallons of Gasoline Used

Fu

el

Eff

icie

nc

y (

Mil

es

per

Ga

llo

n)

Ga

llo

ns

of

Ga

so

lin

e

The Downside of Fuel Efficiency

What do we

Know?Mobility will get worse

–How much worse?

– Depends on how much effort to address the problem

What do we

Know?The Cost of Doing Nothing is High!

– Capital expansion doesn’t happen overnight

– Maintaining current assets is imperative

Just as in yourBusinessTexas

• $270 Billion investment to keep congestion in Texas from getting worse

• $1 Trillion economic cost if we spend at current levels

Over the Next 25 Years

Why it

Matters…

Comprehensive Development Agreements?

Vehicle Mile Traveled Fee?

Local TransportationTaxes?

Drive Less?

Move Somewhere Else?

What’sNext?Increase the Fuel Tax?

Index the Fuel Tax?

Increase the Registration Fee?

Toll Roads?

Public/Private Partnerships?

Is “doing nothing” really an option?

BE BETTER INFORMED | BE MORE INVOLVED | VOICE YOUR CONCERNS

If you want achange

http://mobility.tamu.edu/mip/rpm.php