Abbott, state leaders increase fees, road debt & fail to restrain toll fines

Abbott, state leadership fail to protect drivers from fees increases, more road debt

By Terri Hall
June 20, 2021

Ouch! That’s likely the reaction of taxpayers now that the session is over and the damage to your pocketbook is emerging from the chaos. The 87th Legislature in Texas came to a clunky close a few weeks ago, and the results for taxpayers, particularly drivers, is a mixed bag. Both during his campaign in 2014 and again during his state of the state address in 2015, Governor Greg Abbott promised to fix our roads without more taxes, fees, tolls, or debt. It was the centerpiece of his Texas Clear Lanes Initiative — to pass Prop 7 that year in order to get more funding directed to the state’s most congested roads without adding to the tax burden and without more tolls.

However, this session, he broke three of the four promises. The legislature put a vehicle registration fee hike, a bill to issue new debt from the Texas Mobility Fund (TMF), and another to allow private toll entities to increase toll fines and fees above the $48/year cap placed on the Texas Department of Transportation (TxDOT) on his desk. Abbott allowed all to become law without his signature, but he allowed them to become law nonetheless. Shame on the legislature for passing them in the first place.

The $10 vehicle registration fee hike, HB 1698 (Raney), applies to a Regional Mobility Authority (RMA), which is primarily a toll authority, in Brazos County. That means every car owner will pay more in order to subsidize a toll project they may never drive. It also triple taxes the drivers who do take the toll road since they pay a toll, an extra vehicle registration fee in addition to paying gasoline taxes to use that stretch of road. The excuse they used was that it will come before the voters first. Naturally, big government can always find a way to put lipstick on a pig and sell it to the voters as ‘give us more money or else none of your roads will get fixed.’ Hardly an argument for limited government, lower taxes, or freedom of mobility. Instead, they’re essentially saying give us more while we squander, misuse, or waste the money we already take from you. When RMA executive directors garner higher salaries to run these little toll fiefdoms compared to the Executive Director of TxDOT with 11,000 employees, there’s a problem with bloat and overspending. It’s certainly not because taxpayers aren’t paying enough.

HB 2219 authored by House Transportation Committee Chair Terry Canales will open up the Texas Mobility Fund once again to issuing more road debt. The state debt combined with its local toll entities (which are a subdivision of the state) and private toll entities exceeds $85 billion. The excuse we heard for issuing new TMF debt was because I-35 through Austin will be done non-toll and cost $9 billion, there’s not enough money to go around to fix other congested corridors without tolls (which Abbott has taken off the table). So leadership says it needs access to new road debt in order to avoid using tolls, particularly private toll projects like the exorbitantly expensive ones (as in over $3/mile or $24/day expensive) outside Austin, in DFW, and a stretch in Brazoria County.

HB 1116 by Ed Thompson is one of the most egregious of the session giving a blank check to these private toll entities to slap enormous toll fines and fees onto drivers’ toll bills, bypassing existing state law that caps those fees at $48/year on TxDOT-operated projects. Why on earth would lawmakers allow unlimited fines and fees by private, foreign corporations to be slapped on Texas drivers that it doesn’t tolerate from TxDOT? Fines that can result in a criminal charge and cause drivers to have their vehicle registration blocked and cars impounded?

Watch Out for November Ballot
One piece of legislation, HJR 99 (Canales), that bypasses the governor is a constitutional amendment that gives counties the ability to issue new road debt using an unpopular method backed by property tax increases called Transportation Reinvestment Zones (TRZs). Lawmakers already tried getting this past the voters in 2011 (then known as Prop 4), but voters rejected it. Now they think they can get it slipped past you this November by deceptively changing the ballot language to remove the phrase ‘ad valorem tax increases’ and throw in the word ‘transportation’ (ballot initiatives for transportation tend to pass with over 90% of the vote – nearly 100% of citizens need and use roads on a daily basis, it’s one of the few core functions of government). Even more frightening is the broad language used for the land to do it. It changes the constitution to give counties authority to issue bonds to finance ‘undeveloped, underdeveloped, or blighted areas.’ That could mean virtually anything! One man’s blight is another man’s treasure. The word transportation wasn’t even in the bill until Senator Bob Hall amended it.

Here’s what the ballot language was in 2011:

“The constitutional amendment authorizing the legislature to permit a county to issue bonds or notes to finance the development or redevelopment of an unproductive, underdeveloped, or blighted area and to pledge for repayment of the bonds or notes increases in ad valorem taxes imposed by the county on property in the area.  The amendment does not provide authority for increasing ad valorem tax rates.”

Here’s what it says now:

“The constitutional amendment authorizing a county to finance the development or redevelopment of transportation or infrastructure in unproductive, underdeveloped, or blighted areas in the county.”

Senator Hall jumped into action to help us try to amend the bill and restore the original ballot language. He did manage to amend it in the senate to ensure it can’t be used on toll projects. Whew! But the senate expressly voted to keep the deceptive ballot language. Be forewarned, this bill involves increases to your property taxes to pay off long-term debt for 40+ years for state transportation projects (or anything they can call ‘infrastructure,’ which if you look at the current Biden administration infrastructure bill, that could be student loan forgiveness, Obamacare subsidies, Medicaid expansion or universal preschool). We don’t know the number for this proposition yet or what order it will appear on the ballot, so stay tuned and stay engaged so you know to vote ‘no’ on this proposition in November. Also, remember to hold your lawmakers who voted for it accountable. No fewer than 112 house members co-authored the bill, including Freedom Caucus members Briscoe Cain, Matt Krause, Valoree Swanson, Steve Toth, and Cody Vasut.

So What’s the Mixed Bag?
The grassroots victories come from what you don’t see rather than what you do. Stopping the fire hose of bad toll road, anti-car, anti-driver bills was our biggest accomplishment.

We stopped bills that would have:
-Authorized unlimited private toll roads.
-Reduce speed limit citywide to 25 MPH in urban areas.
-Doubled fines in any corridor labeled a ‘highway safety corridor’ (another form of a speed trap).
-Made cars have to stop not just yield for pedestrians.
-Made TxDOT consider social justice and transportation equity (ie – bike lanes, transit, sidewalks) in all of its funding decisions despite the fact none of these users pay road taxes.
-Eliminate competitive bidding on certain contracts.
-Expanded public-private partnership land deals for the transit agency in Ft Worth (threat to property rights).
-Expand use of RMA toll revenues to green spaces, transit, and economic development unrelated to the toll road.
and more.

While Transportation Committee Chairs, Canales and Senator Robert Nichols, deliberately held up our good reform bills to remove tolls once the debt is paid off and to de-criminalize an unpaid toll bill, and to cap the toll fines and fees imposed by agencies other than TxDOT, Nichols did keep many bad bills from going anywhere in the senate. Cain also played a major role in stalling our toll collection reform bill, HB 3314, in Canales’ committee. Canales presided over an onslaught of horrible bills not only getting hearings, but also moving them out of his committee, forcing the grassroots to mount continuous battles to stop the litany of bad bills in the House. The worst among them was HB 3467 (Canales) to extend the disastrous SH 130 private toll contract another 20 years. It went bankrupt in less than 3 years, and rather than give it back to Texas taxpayers free and clear of any debt (as was promised under oath by former Transportation Commission Chair Ric Williamson in 2007), the court allowed a new set of foreign corporations to come in and take over the contract.

They already get to collect tolls until 2042 (for a road that had its debt wiped out), now they want another 20 years? It’s an outrageous betrayal of the promise given to taxpayers and represents the graft associated with such private toll contracts known as Comprehensive Development Agreements (CDAs) or public-private partnerships. The non-compete clause forbids expansion of free roads in Guadalupe and Caldwell counties, forces Texans to pay for any uncollectible tolls for out of state or international drivers, and these private entities use the state as its toll collector blocking vehicle registrations and impounding Texans cars if they don’t pay up.

Rep. Trent Ashby amended HB 3467 on the floor kicking the ball to the unelected Transportation Commission to decide if extending the contract was a good deal for the state (an easy bar to meet when they offer a revenue-sharing scheme with TxDOT), and it would have barred any future extensions. Thankfully, it died in the senate, but it did pass the House. A day of reckoning should be coming at the ballot box for all who voted for such a horrible special interest bill as well as the four fee hike and road debt bills (with the fate of the one constitutional amendment to be determined in November at the ballot box).

A Few Good Ones Made It
Nichols authored two good bills. One relates to toll road abuse. SB 1727 will prevent local governments from forming their own government corporations to sell their toll systems to in order to use toll revenues as their personal slush funds for non-road purposes. Harris County did this to deliberately bypass state law that prevents raiding toll revenues for non-road uses.

SB 15 prevents the disclosure and sale of drivers’ personal data to private entities who then use it to market to you without your consent. TxDOT and the Dept. of Motor Vehicles have been particularly guilty of doing this, but as the session wore on, lawmakers kept discovering more and more government agencies selling personal data and added them to the bill. like Parks & Wildlife. SB 858 (Johnson/Paxton) also protects transit riders’ personal data. So personal data privacy gets a big win here, although none of this extends to toll agencies guilty of the same thing. Toll agencies and their lobbyists get a free pass for another two years as lawmakers turned a blind eye to the mountain of toll road and toll billing abuses.

Property rights reform
One bright spot was the series of eminent domain reform bills that FINALLY passed after many sessions of repeated road blocks by special interests. Senator Charles Schwertner along with many senate joint authors, including long-time property rights (and anti-toll) champion Senator Lois Kolkhorst, finally got these across the finish line. SB 721SB 725, and SB 726 will allow any appraisals used by condemning entities to be disclosed to landowners in time for their hearings, would remove condemned land from a landowner’s property tax bill, and force condemners to make actual progress on the public project within 10 years or the landowner can buy it back.

So like most sessions, taxpayers got very little meaningful toll road reform, as lawmakers chose to keep biting around the edges by avoiding tackling the most pressing issues facing drivers.

Stop tolls, criminal penalties during coronavirus

IMMEDIATE RELEASE

Anti-toll groups ask Abbott to suspend tolls, penalties during crisis

(March 30, 2020 — Austin, Texas) Today, Texans for Toll-free Highways and Texans Uniting for Reform and Freedom (TURF) call on Governor Greg Abbott to suspend the collection of tolls during the state of emergency due to the COVID-19 crisis. Abbott has already suspended penalties for late vehicle registrations and drivers license renewals during the COVID-19 state of emergency, and the Texas Supreme Court has blocked residents from being evicted from their homes. In addition, power companies and public utilities have been blocked from shutting off power and water to homes during the crisis. So the anti-toll groups contend the same should be granted to drivers with unpaid toll bills so people don’t have their vehicles impounded and lose their ability to get to work.

The groups are asking the Governor to:
1) Suspend tolls during the state of emergency.
2) Suspend the imposition of fines and criminal penalties for unpaid toll bills (which includes fines, blocking one’s vehicle registration, and impounding vehicles).

Suspending tolls, fines, and criminal penalties will expedite the ability of trucks and essential workers to get goods and people to where they need to be using the fastest possible route. Many healthcare workers cannot work if they have a criminal record. Since an unpaid toll bill is considered a criminal misdemeanor (Section 372.110(b), 372.111, 372.112, see here) in Texas, this imperils healthcare workers’ ability to stay on the job in some health systems.

“This is not the time for state or local toll authorities to impose criminal misdemeanor charges against people with unpaid toll bills. A misdemeanor can prevent healthcare workers from keeping their jobs and possibly other essential workers like truckers and emergency responders. We cannot afford to lose any of our essential workers during a public health crisis,” advocates Terri Hall, Founder/Director of TURF and Texans for Toll-free Highways.

“With the financial stress of many workers losing their jobs and families facing uncertain financial situations, having an unpaid toll bill that piles on penalties and late fees during this state of emergency and public health crisis is unreasonable, especially when work restrictions are in place,” Hall points out.

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BIG Fat ‘F’: Majority of state lawmakers earn failing grade

IMMEDIATE RELEASE
Most legislators receive failing grade on anti-toll Report Card

 Both bills filed and bills that moved meant bad news for taxpayers, drivers Austin, Texas – Anti-toll watchdog group Texans Uniting for Reform and Freedom (TURF) released its Report Card from the 86th Legislature today. In comparison to the prior session in 2017, where 57% of legislators were considered friendly, in 2019, that number fell to just 19% (based on the number of lawmakers who earned ‘A’s & ‘B’s). TURF used 18 different transportation, property rights, and good government bills (that impact those first two issues) to calculate each legislator’s score, all of which are listed at the end of its Report Card. Every lawmaker was informed of TURF’s position on the bill prior to the vote. 

The Texas House went off a cliff in terms of friendly legislators, with 73% earning a failing grade. In the Texas Senate, taxpayers fared much better with 45% of senators earning As & Bs. Just 16 total lawmakers earned an ‘A.’ Compare that to 56 lawmakers in 2017, and anti-toll voters have cause for concern.

“While none of our anti-toll reform bills ever got a vote either in committee or on the floor this session, the bills that did move were a disaster for taxpayers. The House Transportation Committee, including most every Republican, clearly wanted to raise your taxes on driving with six bills to increase fines & fees whether registration fees, local sales tax, or traffic fines in ‘safety corridors,'” points out TURF Founder/Director Terri Hall.

“With four bills that passed the House Transportation Committee to extend or expand public private partnership toll contracts this session, the toll lobby and crony capitalists pushed this corporate welfare with full force, despite Gov. Greg Abbott’s promise of ‘no new taxes, fees, debt or tolls.’ With tolls on such privatized toll roads now exceeding $3/mile in Ft. Worth, voting to gouge Texas commuters to that level is inexcusable!” 

Hall argues the difference is due to the leadership. In 2017, when 9 anti-toll bills were turned into amendments offered on the Texas Department of Transportation sunset bill and came up for a floor vote, 57% of lawmakers knew they had better vote the right way on the toll issue. Seven out of nine anti-toll amendments passed in 2017. In 2019, leadership made sure no anti-toll reforms like removing the toll when the road is paid for and capping toll fines/fees and de-criminalizing an unpaid toll bill, made it out of committee. So taxpayers were left trying to hold their ground, defending themselves from a litany of tax/fee hikes, further criminalizing drivers, and the continued assault on property rights. 

“Under that broader microscope, lawmakers failed the test,” Hall concludes. 

With election season ramping up, TURF anticipates that the 300 grassroots groups that use its Report Card to vet potential candidates on transportation/property rights issues will be seeking accountability at the ballot box in 2020.

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Abbott, Patrick: ‘No more tolls’

Abbott, Patrick tame rogue highway department, scrap new toll projects

It’s not very often that the lowly taxpayer gets a win this big, but it finally came. After 12 years of wrangling over toll roads, Governor Greg Abbott and Lt. Governor Dan Patrick came to the rescue issuing a final decree ending toll roads in Texas.

The Texas Department of Transportation (TxDOT) ignited a taxpayer revolt when it proposed 15 new toll projects as part of the update to its ten year plan — the Unified Transportation Plan (UTP). Not only did TxDOT try to railroad a litany of toll projects, it adopted a plan to use Prop 1 and Prop 7 funds that are constitutionally protected from going to toll projects to finance the US 183 toll project in Austin.

Abbott campaigned on the promise of fixing Texas roads without raising taxes, fees, debt or tolls. He reiterated his position in his first State of the State address in 2015 as well as when he announced his Texas Clear Lanes initiative that was to focus funding on the state’s most congested roads.

The Texas Conservative Grassroots Coalition led by Texans for Toll-free Highways and Grassroots America – We the People fired off a letter to Abbott’s newly named Texas Transportation Chair Bruce Bugg, along with a press release that didn’t mince words, “Read Our Lips: No New Toll Taxes.”

Patrick weighed-in first with a strong public statement, “I oppose adding any additional toll lanes to TxDOT’s UTP. I fought against increasing the state’s reliance on toll roads as a state senator and I have continued that fight as lieutenant governor. The Texas Legislature worked hard to pass Proposition 7 in 2015 to provide billions in funding for transportation infrastructure to help eliminate the state’s need for additional toll roads. Eliminating the need for tolls was one of the primary reasons the Texas Legislature passed Prop 7 and why Texas voters approved it. No new toll roads have been approved by the Senate or the House in the last two sessions and legislators I have spoken with are very unhappy that the Commission seems now to be going in a direction that opposes the will of the legislature and the majority of Texans.”

Patrick also said he sent a letter to Bugg asking him “to develop a plan that contains no additional toll lanes.”

Then Abbott made clear that he expects the same. Spokeswoman Ciara Matthews stated: “The governor and his staff have been in constant communication with members of the Texas Transportation Commission and TxDOT staff to express their desire to not include new toll roads as part of TxDOT’s Unified Transportation Plan.”

Within hours, TxDOT issued its own statement retreating from its position just hours earlier at its Transportation Commission hearing, “Members of the Texas Transportation Commission and TxDOT staff have been in regular contact with the Governor’s office over the past several weeks and we understand the Governor’s expressed desire to not include new toll roads. In response to public comments received, we are developing a plan to scrub the UTP update of any toll roads in the proposed revisions.”

Boom!

So ten days after the grassroots issued its letter in support of Abbott’s no-toll promise and asking for intervention, he and Patrick wasted no time in squelching the rogue agency. Last week, Rep. Joe Pickett requested an attorney general opinion on whether or not TxDOT’s use of Prop 1 and Prop 7 funds on a toll project was even legal, which prompted news reports outing the agency’s deliberate attempt to violate the constitutional protection voters overwhelmingly chose to put in place.

The confluence of events created a perfect storm that led to a public showdown between the taxpayers and a rogue highway department bent on ramming toll roads down voters throats, despite the persistent movement away from toll roads by their elected representatives in recent years.

The unpopularity of toll roads has been reaching a boiling point in Texas. As the house of cards was falling on toll roads, the Texas Tribune ran a story highlighting the reality many commuters now face — pay hundreds of dollars a month in punitive toll taxes to get anywhere, or sit in traffic and watch your quality of life disappear.

One Austin resident literally decided to sell her house and downsize into an apartment to relieve herself of the aggravation of unrelenting traffic in the non-toll lanes or paying ridiculous sums of money in tolls to get to work in a reasonable timeframe.

Her story is echoed by many Texans, especially in the toll saturated Dallas-Ft. Worth Metroplex where drivers can scarcely go anywhere without facing unbearable gridlock or paying tolls upwards of $10/day.

Sen. Bob Hall issued a scathing statement on TxDOT’s proposed toll plan that equates the typical $10/day toll to a $25 per gallon gasoline tax that, over a lifetime, would mushroom into an eye-popping $135,000 in toll taxes.

“This is an outrageously unacceptable tax burden, and Governor Abbott must step-in to stop it before it’s too late.”

Well, Texas taxpayers can breathe a sigh of relief this Thanksgiving that both Abbott and Patrick did just that and rescued commuters from further oppressive toll taxes on 15 more Texas highways. It’s rare for a promise made to be a promise kept in politics. These two leaders are to be commended for keeping their promises to Texas voters.