1984-04-11 Regular Meeting - Laserfiche WebLink

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e e "'- --- ~:- . POTHOLE BILL FACT SHEET The highway finance legislative package supported by 'lML consists of three parts: (1) A provision to double the rate of the state motor fuel tax from 5~ to 10~ per gallon, and an increase the amount of the state motor vehicle registration fee; (2) .Increased state appropriations of $1 billion per year to the State Department of Highways & Public Transportation for improvements to state highways and bridges; and (3) The appropriation of state funds for municipal street and bridge repairs--the "Pothole Bill." Under Part Three of the package, the state legislature would appropriate $200 million per biennium for city street and bridge repairs. Half of that amount would be distributed to the cities in 1984-85;. the other half would be allocated in 1985-86. Under the Pothole Bill, each city would have to demonstrate a commitment to helping solve its own repair problems by matching its state allocation 30/70. In other words, for each. $700 provided by the state, the city would have to put up $300. The entire amount of the city's allocation must be spent for street and bridge repair and maintenance. Expenditures for new construction would not be permitted. All cities would be eligible for funding. Each city's share would be based on the number of miles of paved street (concrete or asphalt) maintained by the city. There are' about 60,000 miles of municipal street in the state. There- fore, each mile of paved street would entitle the city to $100m. - 60,.000 = . $1,660 per year. A city with 10 miles of street would receive $16,600/year; one with 50 miles of street would receive $83,000 and so on. There are several legitimate reasons the Legislature should approve the Pothole Bill: (1) More than 60% of all motor vehicle travel in the state takes place on city roads. Also, city residents pay a major share of all motor fuel taxes and vehicle registration fees collected by the state. Currently, none of these revenues are remitted back to the ci ties to help deal wi th the street repair problems created by the millions of vehicles which generate the revenues in the first place. (2) Unlike many other types of municipal functions, streets and bridges are a. statewide concern. The quality of the state's transportation system is dependent upon the quality of local roadways. (3) Raising property taxes is not the answer to our municipal street and bridge problems. The local property tax is overloaded, and many Texas cities have experienced Proposition 13-type taxpayer rebellions during the past few years. Remitting $100 million per year back to the cities would provide a direct form of 'tax relief' by alleviating pressures on the local property tax to fund street repairs. . (Over) . . €.s-