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Transportation Commission Votes to Proceed with Bond Issuance
08/29/2008
The Texas Transportation Commission unanimously signaled its intent to issue $1.5 billion in Proposition 14 bonds during a special meeting held Aug. 29 in Austin. The debt will support development and construction projects in 2009.
The Commission meeting was held in response to a letter received by Commission Chair Deirdre Delisi the previous week, in which Governor Rick Perry, Lieutenant Governor David Dewhurst and Speaker Tom Craddick urged the commission to exercise their ability to issue the bonds.
“The funds generated by the sale of these bonds will enable TxDOT to get needed transportation projects back on track,” said Delisi. “I have instructed TxDOT staff to begin identifying projects across the state that are ready to immediately move forward and make use of these additional funds. I expect the staff to present these projects to the Commission in September.”
In addition to encouraging the sale of bonds in their letter, the state’s leaders identified measures they would address during the 81st Legislative Session in 2009 to address long-term transportation funding. One of the proposals would appropriate money from the state’s General Fund for the Proposition 12 bonds approved by Texas voters in 2007.
Texas voters approved Proposition 14 highway bonding authority in 2003. To date, TxDOT has issued $3.1 billion in Proposition 14 bonds. The Proposition 14 bond program authorizes the Texas Department of Transportation (TxDOT) to borrow money on a short-term basis to improve cash flow and cash management and to issue general obligation bonds secured by the State Highway Fund to accelerate transportation projects. The bonds are repaid with money from State Highway Fund including motor fuels taxes and vehicle registration fees.
