Title: Texas Road Finance (Part I)
Headings: Texas Road Finance (Part I)
Texas Road Finance (Part I) Paying for Highways and Byways
TxDOT and Texas Roads
Miles and Miles
Exhibit 1:  State-Maintained Roads and Highways in Texas, 2014
Rough Road Ahead?
Where the Money Comes From
Exhibit 2: Sources of State Highway Fund Revenue Estimates for Fiscal 2016 and 2017
New Revenue for Roads
Exhibit 3: Proposition 7, Transfers To the State Highway Fund (SHF)
Unmet Needs

Content: Where the Money Comes From
Most federal and state road funding across the nation comes from taxes on motor fuels as well as general sales taxes and other levies. Federal taxes go to the federal Highway Trust Fund (HTF), which supports highway and mass transit programs and projects, formula-based state grants and other programs identified by Congress. Funding for Texas’ State Highway Fund (SHF) — almost $21 billion for the state’s 2016-2017 biennium — comes from several sources, the largest by far being the federal government, which supplies just under half of Texas highway revenue ( Exhibit 2 ). The state’s motor fuels taxes and auto registration fees account for the bulk of state revenue. Exhibit 2: Sources of State Highway Fund Revenue Estimates for Fiscal 2016 and 2017
STATE REVENUE
Fiscal 2016
Fiscal 2017
Motor Fuels Taxes Allocations
$2,558,220
$2,600,847
Motor Vehicle Registration Fees
1,419,568
1,455,057
Severance Taxes Allocations
1,134,668
594,182
Other Revenue*
202,021
193,924
Supplies, Equipment, Services — Federal/Other
184,434
160,000
Special Vehicle Permit Fees
101,232
101,232
Motor Fuel Lubricants Sales Tax
44,500
44,900
Interest on State Deposits and Investments, General Non-Program
21,946
16,048
Sales of Publications and Advertising
6,600
6,600
Total State Revenue
$5,673,189
$5,172,790
FEDERAL INCOME
Fiscal 2016
Fiscal 2017
Federal Receipts Matched — Transportation Programs
$5,206,283
$4,770,002
Federal Receipts Not Matched — Other Programs
21,705
21,705
Total Federal Income
$5,227,988
$4,791,707
Total State Highway Fund Revenue
$10,901,177
$9,964,497
*Other revenue includes reimbursements and other miscellaneous fees, charges and revenue. Source: Texas Comptroller of Public Accounts
Prior to recent actions by the Texas Legislature, however, these traditional funding sources for transportation projects were being strained to the limit, and not only because of population and general economic growth. The recent oil and gas boom in shale formations, for instance, pushed thousands of heavy trucks on rural Texas roads not designed for such traffic. While the boom has subsided, the damage to overstressed roads remains.