Laredo, August 24, 2000

Texas State Comptroller Carole Keeton Rylander Hears Transportation Concerns in Laredo

Summary

The border region suffers from a lack of state transportation funds to address the overwhelming increase in traffic due to NAFTA, leading to a need for alternative transportation funding methods and funding formulas. This was the consensus at the August 24 Texas Department of Transportation Performance Review hearing in Laredo.

“Transportation funding should be based on need,” said Laredo Mayor Elizabeth Flores. “The TxDOT formulas give little weight to border traffic and the population numbers do not take into account the more than half a million vehicles registered in Mexico that use our border roads.”

Comptroller Rylander; State Senator Judith Zaffirini; The Honorable Elizabeth G. Flores, Mayor, City of Laredo

The Legislature, in the 76th session, charged the Comptroller’s office with reviewing TxDOT to find ways to improve Texas’ transportation system. This is the fifth public hearing Comptroller Carole Keeton Rylander held throughout the state.

The hearing is in conjunction with Comptroller Rylander’s e-Texas initiative, a citizen commission charged with developing recommendations to help Texas state government meet the challenges of the Internet Age.

The TxDOT review team is looking at four main aspects of TxDOT:

• Geographical distribution of transportation funds,
• Alternative funding mechanisms,
• Construction practices of TxDOT, streamlining projects to make them more efficient and effective, and
• Business practices of TxDOT, looking at ways for taxpayers to get more for less.

“Today TxDOT is able to address only about 43 percent of the highway needs of the state,” Comptroller Rylander said. “A recent poll by Texas Interested Citizens found that 74 percent of Texans think congestion has gotten worse in the last two years. The same poll found that two out of three Texans oppose raising the gas tax to pay for better transportation.

“That is where the TxDOT study comes in,” Comptroller Rylander said. “Finding ways to build roads without raising taxes.”

Major Issues

Major issues raised by panelists and audience members included:

• Alternative funding methods leading to more transportation dollars being designated to the border region, and
• Expanding current roads and creating new infrastructure along the border to cut down on congestion, including the completion of Interstate-69.

Panelist Commentary

From 1992 to 1999, the state spent an average of $113 per resident, statewide in highway construction and maintenance, according to a study by the Comptroller’s office. An average of only $93 per resident was spent along the border during that period.

“We must put our transportation dollar where the need is highest,” Comptroller Rylander said. “NAFTA and the increase in Texas-Mexico trade requires better transportation infrastructure.

“I am convinced that we must make a firm commitment to jump-start roads and other infrastructure construction, especially along the Border.”

Grant Anticipation Revenue Vehicle bonds, GARVEE bonds, is one method discussed as a means of addressing transportation concerns along the border. GARVEE bonds are highway construction bonds backed by future federal highway revenues. Texas does not have the authority to issue these bonds. However, Comptroller Rylander will once again push for the passage of legislation allowing these bonds in Texas.

Comptroller Rylander pointed out that seven states have issued GARVEE bonds and four other states have the authority to do so.

“GARVEE bonds represent a new approach to jump-starting state construction of highways statewide. By allowing highway projects to begin more quickly, GARVEE bonds could dramatically increase funds during the next several years for highway projects throughout the state,” Comptroller Rylander said. “We could have free trade, free from gridlock.”

Mayor Flores agreed that something needs to be done to relieve trade congestion and reduce the social costs of NAFTA.

“Congestion has an annual social cost to Texans of $213 million, accidents have an annual cost of $158 million, air pollution has an annual cost of $89 million and noise pollution has an annual cost of $49 million,” Mayor Flores said. “TxDOT’s border districts accounted for 34.9 percent of the $178 million of the social costs borne by Texas.”

“We need TxDOT to continue to work with us to develop and maintain a workable plan for the border to support economic development and a desirable quality of life,” Mayor Flores said. “After 150 years of neglect, we are finally getting attention here along the border.”

John Adams, executive director of the Laredo Development Foundation, discussed the need for I-69 through the border region and the dynamics of doing business along the border.

“Currently there is over 12 million in population on the entire 1,900 mile border,” Adams said. “Laredo is the fastest growing city east of the Rocky Mountains. It’s the number one job creator in Texas and we built more homes in Laredo last year than were built in Houston.”

The transportation magnitude in Laredo is overwhelming, according to Adams. He said in June, alone, almost 200,000 trucks crossed the World Trade Bridge. In Laredo, 10,000 trucks pass through the city, he said.

With the trade traffic and congestion building on the roads already in place, Adams said he wants to focus on building roads north and south as well as maintaining and upgrading the existing roads. He said he doesn’t expect I-69 to be complete for a while and is certain that the region will have almost outgrown I-69 by the time of completion. However, he did stress the importance of moving forward with the I-69 project.

Jorge Haynes, senior vice-president for public affairs for the International Bank of Commerce, stressed a fair-share approach to TEA-21.

TEA-21 is the Transportation Equity Act for the 21st Century. The Transportation Equity Act for the 21st Century was enacted June 9, 1998. TEA-21 authorizes the Federal surface transportation programs for highways, highway safety, and transit for the 6-year period 1998-2003, as well funding authorization.

All programs funded and authorized under TEA-21 will have to be re-authorized after 2003 when the current authorization elapses. Generally, when a new transportation act is passed some current programs are re-authorized; others may be eliminated; and new programs are created.

“We want a fair-share approach to TEA-21,” Haynes said. “With a fair allocation of funds, the border will be fine.”