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TxDOT Seeks to Identify Optimal Use for Limited Resources
At the November 15 meeting of the Texas Transportation Commission, Deputy Executive Director Steve Simmons of the Texas Department of Transportation (TxDOT) outlined changes in agency spending aimed at optimizing transportation funds in light of depleting resources for new projects.
The changes are necessary due to a multitude of factors. During the past two years, Congress has rescinded $666 million apportioned to Texas. Another $249 million in rescissions is included in a FY 2008 Transportation Appropriations bill that has yet to be signed into law. In 2009, a $700 million rescission in the SAFETEA-LU bill will further reduce transportation funds. The Federal Highway Trust Fund is also expected to become insolvent in 2009 by several billion. Current projections are that if the existing authorized letting and expenditure plans are carried out, TxDOT will sustain a deficit of at least $1.8 billion by FY 2012 and at least $3.6 billion by FY 2015.
Changes to the TxDOT budget include reducing the use of consultant engineers for 2008 from $550 million to roughly $300 million. The 2008 right of way budget will be decreased from $500 million to $275 million. The research budget will be cut by as much as 50 percent for expenditures in 2009.
Simmons discussed other measures taken by the agency’s leadership, including approval of purchases and a hiring freeze. TxDOT will also look for opportunities to consolidate functions and responsibilities to generate greater efficiencies.
As a result of these changes, TxDOT’s goals to reduce congestion, expand economic opportunity, and improve air quality will take a back seat to specifically enhancing safety and maintaining the value of our transportation system.
James Bass, TxDOT's chief financial officer, told commisisoners that almost all of the $9 billion borrowed through two new debt funds has been committed to projects either under way or soon to start. Another $3.3 billion given to the state by the North Texas Tollway Authority for the right to build and operate the Texas 121 tollway can be used only for projects in the Dallas-Fort Worth area. And, nearly all of the agency's normal cash flow from gas taxes and fees is being used up on current needs.
