Alternatives to the motor fuel tax for financing Texas transportation

Our nation is faced with a shortfall in funding desired transportation improvement programs. Texas is one of many states currently at crisis level as it is faced with an estimated annual funding shortfall of about $7 billion dollars between projected needs and transportation fund availability. This is a result of increased vehicle miles traveled and significant population growth that has outpaced the state’s transportation fund availability. Not only is the Texas transportation system declining in quality, but it is rapidly falling behind in the quantity needed to maintain current quality of life. As the Texas Mobility Fund balance approaches zero, the state needs to look toward non-traditional financing mechanisms to address its revenue shortfall. This report examines the problems associated with increased transportation demands in Texas and financing the expansion and maintenance of the state’s transportation system.