In The Black

Amanda Eaves CPA

Yesterday, John Sedlak, Executive Vice President of METRO, spoke to the Greater 288 Partnership about METRO’s Long Range Plan. Acknowledging first that no one agency can solve the long range problems facing METRO, he noted that partnerships- such as the Greater 288 Partnership are key to moving forward. METRO’s long range plan covers their entire region, which consists of 8 counties- a very large area. Mr. Sedlak addressed what makes this region great: education, economic opportunities and reliable transportation. We’re grateful for these positive components in our community, but they also help to present us with the largest challenge: Population Growth.

Most people know that Houston is the 4^th most populous city, but we are also in one of the fastest growing regions of the country. This area is estimated to grow to 10 million residents over the next 40 years, according to Sedlak. He compared this growth to taking the current city of Los Angeles and adding the population to our area. The growth will not be confined to Harris County, but will reach to the surrounding counties.

Hand-in-hand with the population growth will be employment growth. This region currently has more jobs than many states have state-wide. The future locations of the population and the job centers will dictate transportation enhancements.

What Exists Today

Currently, 370,000 people rely on METRO daily. Buses, Park & Ride, Bikes on Bus, MetroRail, MetroLift, HOV & HOT Lanes, MetroStar, and the Motor Assistance Programs are some of the many ways in which Houstonians utilize METRO every day. The METRO rail line from downtown to the Texas Medical Center is the 2^nd most heavily used passenger/ per mile rail in the country. Boston is the highest, and as Sedlak pointed out- it’s been around for 100 years. METRO also supports a General Mobility program in which 25% of METRO sales tax is used for street and road improvements.

Some of the new programs on the horizon are:

-          Converting HOV Lanes to Toll Lanes for single passenger cars (expected for Spring 2012- beginning with the Gulf Freeway)

-          Extending the rail line 5.5 miles to the North and extending to the Southeast towards the Universities

-          METRO is exploring a line to Missouri City and one to serve the Post Oak area

Key to METRO’s success in the future is determining where the greatest needs will be. To assist in this process, they’re asking for your help. METRO wants your thoughts on transportation in our area. To provide them with feedback:

-          Visit their web site www.ridemetro.org

-          Fill out a comment card

-          Email them at metrovision@ridemetro.org

-          Send correspondence and get on the mailing list:

METRO

Larry Badon

PO BOX 61429

Houston, TX 77208-1429

Let METRO know how they can best serve our community in the future.

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Amanda Eaves CPA

Delvin Dennis, Houston District Engineer for TXDOT presented to the Pearland Chamber last week about the Needs and Challenges that TXDOT is facing with regards to Transportation Funding.

Transportation Needs

The Texas Transportation Institute estimates transportation needs to be approximately $370 billion between now and 2035. This amount is strictly to maintain existing infrastructure, prevent (not improve) worsening traffic congestion and ensure rural mobility and safety. When you figure in other state responsibilities- like ferry service on the Gulf Coast and engineering and planning, the amount increases to more than $480 billion over the next 20-plus years. State leaders have begun to investigate long-term financial solutions to fill this funding gap.

The Challenges

Texas is facing several Transportation Finance Challenges. Transportation has historically received its funding primarily from motor fuels taxes and registration fees. The challenge is that these fees have remained static for many years. Texans have paid 38.4 cents per gallon in state and federal motor fuel taxes since the early 1990s. While this rate has remained the same, other changes have occurred:

Fuel Efficiency Improvements: More fuel efficient cars means fewer gallons of fuel purchased.

Construction Inflation: In Texas, construction inflation increased 65% between 2002 and 2008.

Federal Funding Issues: Federal funding is increasingly unreliable, making it difficult to plan for the future.

Aging Infrastructure: Many Texas roads are in need of a facelift

Other Programs: In the 2010- 2011 Biennium, $1.15 billion state highway fund revenues were allocated to other programs.

When faced with these numbers, the obvious solution seems to be raising the motor fuels tax rate. Mr. Dennis commented that he has had several people make the recommendation “just raise it a nickel”. And while that seems like a harmless change, Mr. Dennis reminded the audience that politicians who advocate for raising taxes don’t find themselves in office for very long.

The Discussion

There are a number of different solutions being explored: from increased vehicle registration fees to replacing the current per-gallon fuel tax with a Vehicle Miles Traveled tax system. Bonding, Tolling and strengthening of Transportation Reinvestment Zones to increase property taxes are also being investigated. TXDOT does not advocate for any of these solutions in particular, as final decisions belong to the state legislators and members of Congress. But we can rest assured that Public officials are working to develop options that can help Texas meet its transportation demands.

*Data provided by TXDOT’s “Transportation Funding, Houston Edition”

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