Texas Transportation Funding and Why It Matters David R. Ellis, Ph.D. Research Scientist and Program Manager Infrastructure Investment Analysis Program.

Texas Transportation Funding

and Why It Matters

David R. Ellis, Ph.D.Research Scientist and Program Manager

Infrastructure Investment Analysis ProgramTexas A&M Transportation InstituteThe Texas A&M University System

125%

172%

238%

19%0%

50%

100%

150%

200%

250%

Population RegisteredVehicles

Vehicle MilesTraveled

State-MaintainedLane Miles

Annu

al P

erce

nt In

crea

se

Percent Annual Increase in Texas: 1970 to 2010

Demand Supply

Fuel TaxesVehicle Registration

FeesCost of Vehicle

Ownership05

101520253035404550

42nd

30th

16th

44th

How Texas Ranks

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

0

5

10

15

20

25

30

35

40

14.113.3

18.416.215.715.314.813.612.812.812.112.512.411.0 8.8 7.7

7.9 7.08.99.1 8.5 7.2

6.66.3

20.0 18.918.1 17.6

17.116.616.1 14.8

13.913.9

13.113.613.5 12.0

9.6 8.48.5 7.6

9.69.9 9.2 7.8 7.4 6.8

Effective State Tax RateEffective Federal Tax Rate

Cent

s Pe

r Gal

lon

Purchasing Power of the Gasoline Tax

Downside of IncreasedFuel Efficiency

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

14

16

18

20

22

24

500

550

600

650

700

750

Fuel

Effi

cien

cy (M

iles

per G

allo

n)

Gal

lons

of G

asol

ine

Fuel Efficiency (in MPG)

Gallons of Gasoline Used

If our supply of transportation doesn’t keep pace with the demand for transportation, the economic cost could be as much as $1 TRILLION over the next 20 years.

Why It Matters

1 Hour

Labor Markets and Consumer Markets Shrink

1 Hour

Labor Markets and Consumer Markets Shrink

The Cost of Maintenance

Four Big Issues

Four Big Issues

•Mobility

Four Big Issues

•Mobility

•Maintenance

Four Big Issues

•Mobility

•Maintenance

• Connectivity

Four Big Issues

•Mobility

•Maintenance

• Connectivity

• Safety

What Can We Do?

What Can We Do?

• Increase Funding

What Can We Do?

• Increase Funding

•Be Smarter

What Can We Do?

• Increase Funding

•Be Smarter

•Be Innovative

What Can We Do?

• Increase Funding

•Be Smarter

•Be Innovative

•Get Started

Contact Information

David R. Ellis, Ph.D.Research Scientist

Texas A&M Transportation InstituteThe Texas A&M University System

College Station, Texas 77845

[email protected] 979-845-6165

Four Big Issues

•Mobility

•Maintenance

• Connectivity

• Safety