Pass-through tolls bypass Travis County
For Travis, the pass-through bucks stop here
June 19, 2006
Ben Wear
Austin Amaerican-Statesman
Copyright 2006
Travis County, at least so far, is taking a pass on pass-through highway financing. It's a relatively new way of building roads and improvements without tolls: Locals pay for projects, and the state, over time, partially pays them back.
Williamson County, Hays County, San Marcos and about a dozen other Texas localities have lined up for the program over the past year. Travis County, conspicuously, hasn't joined the game.
Anti-toll activists in the past few weeks have taken note of this and begun to call for the county to use pass-through financing rather than putting tolls on five roads in the controversial Phase II turnpike plan. For a number of reasons — including the $1.4 billion cost, political resistance from the state transportation commission, which likes Phase II — that's highly unlikely to happen.
But it isn't like the county doesn't have plenty of other roads on the state system that could use more lanes or wider shoulders or overpasses. The growing slog through stoplights on RM 620 comes to mind, along with the increasingly congested RM 2222 and Loop 360, and a number of rural two-lane roads leading to and from the Texas 130 toll road.
So why is Travis County cool to the idea?
Well, first, you have to know how pass-through financing works. A local government (or even a private company, like Zachry Construction Co.) identifies needed projects on state roads and then applies to the Texas Transportation Commission for a pass-through agreement. In general, the local government would pay for the improvements up front and then over 10 to 20 years get annual payments — based on traffic loads — from the transportation commission to cover about 80 percent of the original cost.
The uncovered 20 percent, Travis County officials say, is a big problem for them. The state payments would not cover the interest costs if the county had to borrow the construction money (as it would surely have to), and those interest costs can be steep over a 20-year repayment plan. Like 50 percent.
Joe Gieselman, longtime head of the county's transportation department, has been discouraging his political bosses from signing on for a couple of reasons. First of all, he sees pass-through financing as a way for the state to slough off needed road spending from state gas taxes to local property taxes. Secondly, he said it's by no means clear that the county could, without raising taxes, pay off that 60 percent to 70 percent gap between what it would owe and what the state would pay back.
Of course, this same logic applies to Williamson County and the other governments that have pass-through agreements or are seeking them. Consultant Mike Weaver, who represents Williamson, says most of the areas seeking pass-through deals are suburban and fast-growing.
"You've got to really, really want the roads," Weaver said. "If you do, you'll find a way to pay for it."
Getting There appears Mondays. For questions, tips or story ideas, contact Getting There at 445-3698 or bwear@statesman.com.
© 2006 Austin American-Statesman: www.statesman.com
June 19, 2006
Ben Wear
Austin Amaerican-Statesman
Copyright 2006
Travis County, at least so far, is taking a pass on pass-through highway financing. It's a relatively new way of building roads and improvements without tolls: Locals pay for projects, and the state, over time, partially pays them back.
Williamson County, Hays County, San Marcos and about a dozen other Texas localities have lined up for the program over the past year. Travis County, conspicuously, hasn't joined the game.
Anti-toll activists in the past few weeks have taken note of this and begun to call for the county to use pass-through financing rather than putting tolls on five roads in the controversial Phase II turnpike plan. For a number of reasons — including the $1.4 billion cost, political resistance from the state transportation commission, which likes Phase II — that's highly unlikely to happen.
But it isn't like the county doesn't have plenty of other roads on the state system that could use more lanes or wider shoulders or overpasses. The growing slog through stoplights on RM 620 comes to mind, along with the increasingly congested RM 2222 and Loop 360, and a number of rural two-lane roads leading to and from the Texas 130 toll road.
So why is Travis County cool to the idea?
Well, first, you have to know how pass-through financing works. A local government (or even a private company, like Zachry Construction Co.) identifies needed projects on state roads and then applies to the Texas Transportation Commission for a pass-through agreement. In general, the local government would pay for the improvements up front and then over 10 to 20 years get annual payments — based on traffic loads — from the transportation commission to cover about 80 percent of the original cost.
The uncovered 20 percent, Travis County officials say, is a big problem for them. The state payments would not cover the interest costs if the county had to borrow the construction money (as it would surely have to), and those interest costs can be steep over a 20-year repayment plan. Like 50 percent.
Joe Gieselman, longtime head of the county's transportation department, has been discouraging his political bosses from signing on for a couple of reasons. First of all, he sees pass-through financing as a way for the state to slough off needed road spending from state gas taxes to local property taxes. Secondly, he said it's by no means clear that the county could, without raising taxes, pay off that 60 percent to 70 percent gap between what it would owe and what the state would pay back.
Of course, this same logic applies to Williamson County and the other governments that have pass-through agreements or are seeking them. Consultant Mike Weaver, who represents Williamson, says most of the areas seeking pass-through deals are suburban and fast-growing.
"You've got to really, really want the roads," Weaver said. "If you do, you'll find a way to pay for it."
Getting There appears Mondays. For questions, tips or story ideas, contact Getting There at 445-3698 or bwear@statesman.com.
© 2006 Austin American-Statesman:
posted by Porkus Maximus Tex: at Monday, June 19, 2006
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