Texans charged twice for highways

Texans charged twice for highways
By Bennie Wilson : May 23, 2014
Express-News

SAN ANTONIO — Please consider the following scenario.

A Bexar County family goes shopping at its favorite grocery store to get biweekly food items and sundries. After awhile, the family checks out at one of the cashier stations.

As the family departs, the manager races out to catch them in the parking lot. The manager is apologetic as she explains that a robbery just occurred at their cashier station, so they must return their purchases since their payment has been stolen. As they look around the parking lot, they see other store employees accosting customers with what appears to be the same confiscation.

The shoppers are incredulous. This is America; it’s Texas for God’s sake — they paid the advertised prices for the items they bought. The manager, now sensing that the situation is approaching a critical stage not covered in his customer service training, dials 9-1-1 for police assistance.

As the family attempts to depart with the purchases for which it has already paid, SWAT teams surround the parking lot. A crisis negotiator formulates a win-win plan to assuage both the angry customers and the manager.
All the customers have to do is to pay again for the groceries they’ve bought. With their double payment, they’ll get their purchases and the store will get back the money that was stolen.

Please don’t complain to your grocer; this was only an allegory — a hypothetical story involving a common activity (grocery shopping) to illustrate the real-world activities of our politicians in Austin.

It’s a metaphor for how our state government is charging Texans twice for fixing the awful highway system in North Bexar County and beyond. Throw in federal tax subsidies to fix our state’s misuse of taxes dedicated to Texas transportation infrastructure needs, and it’s a trifecta of state financial and political malfeasance.

Read more here.

Texas House to end 80-yr raid of gas taxes

Link to article here.

Texas House to end 80-yr raid of gas taxes
By Terri Hall
May 14, 2014

It’s about time. Speaker Joe Straus announced today that the Texas House will finally introduce a budget next session that will put an end to gas tax diversions. The practice has been a sore spot for taxpayers as the state has increasingly relied on tolling and debt to bail out lawmakers from having to discipline the use of gas tax. Collecting taxes for one purpose then spending it on another defies truth in taxation and transparency.

While this announcement is a welcome step in the right direction, it leaves the impression that all of the gas taxes collected would now go to roads. However, the press release is carefully worded to say all the money in the ‘State Highway Fund’ would go to roads. Twenty-five percent of the gas tax gets diverted to public schools before it hits the State Highway Fund per the Texas Constitution. So one-quarter of the gas tax would still be diverted elsewhere. To change that requires two-thirds of the Texas Legislature to pass a Constitutional Amendment that voters would then have to approve. As long as Democrats draw breath, that would never happen. As long as Republicans draw breath, they’ll never raise the gas tax.


The timing of Straus’ announcement is no accident. Lawmakers passed a Constitutional Amendment last year that comes before the voters this November. Proposition 1 would divert half of the oil and gas severance tax (roughly $1 billion/yr) that currently goes into the state’s Rainy Day Fund to the State Highway Fund. If raiding that highway fund for non-road purposes is still the practice, lawmakers recognize voters are unlikely to approve the measure.

None of the new money could go to toll roads, which is a double tax that’s currently the norm at the Texas Department of Transportation (TxDOT). None of the state’s proposed toll roads, which number in the hundreds, are toll viable. That means none of them can pay for themselves with just the toll users alone. All require big taxpayer subsidies and/or loan guarantees. So Texans are being double and triple taxed to drive on a single stretch of road, some on lanes they drive on today toll-free.

Despite the protection from toll roads and the requirement that a minimum amount stay in the Rainy Day Fund before the severance tax could go to roads, many tea party groups still oppose the amendment out of principle – the state shouldn’t be using emergency funds to fund a core function of government, roads. So Straus’ pledge comes at an important juncture as lawmakers seek to shore-up support for the amendment.

When the legislature passed the amendment, Rep. George Lavender warned his colleagues that voters would think the road funding problem is solved if they approve the measure. But it won’t, and neither will ending gas tax diversions. TxDOT is short $4 billion a year and ending non-education gas tax diversions and passage of Prop 1 doesn’t even solve half of the problem. Lawmakers still need to look at other options to shore-up the structural road funding shortfall.

What shortfall? The state collects a 20-cent per gallon tax on gasoline that’s remained unchanged since 1991. It doesn’t adjust for inflation so we’re, in essence, trying to build today’s roads with a 20-year-old revenue stream. On top of that, much of our existing road money is being habitually raided for non-road purposes, like the gas tax diversions.

The low hanging fruit is to stop using road money (paid for by motorists) for transit, rail, and bike paths that motorists don’t use. That goes for both federal and state gas tax. The Texas Mobility Fund is being used to build street cars, toll roads, and dredge our ports, when it should be used to fix our freeways and keep them toll-free. The next step to truth in taxation is to dedicate the vehicle sales tax ($3.3 billion/yr) to roads, which is currently being dumped into general revenue. Together, by simply dedicating all the current road taxes we already pay to roads, lawmakers can fix the structural road funding shortfall without raising taxes.

Straus should be commended for taking an important bold step in ending an 80-year practice of raiding road funds. But there’s still a long way to go to ensure adequate funds are appropriated to build and maintain our highways in a growing state.

Poll Shows Overwhelming Opposition To Tolling

Link to article here.

Poll Shows Overwhelming Opposition To Tolling
Two out of three reject the administration plan to toll existing interstate freeway lanes in a new Rasmussen Reports poll.
TheNewspaper.com
May 8, 2014

In a nationwide survey of American adults, only 22 percent expressed support for the administration’s latest push to allow states to convert existing freeway into toll roads. Rasmussen Reports released the findings Wednesday in the wake of the Transportation Department’s presentation of its funding blueprint to Congress.

“A proposal has been made to allow states to put tolls on Interstate highways to help pay for highway and other infrastructure repairs,” the pollsters explained to a thousand survey participants. “Do you favor or oppose putting tolls on Interstate highways for infrastructure maintenance?”

Nearly two-thirds said they opposed the idea. Resistance was nearly universal across demographic categories, with a solid majority of young and old, black and white, married and unmarried expressing opposition to tolls. Republican distaste for tolling was highest at 74 percent compared to 54 percent of Democrats. The only group where opposition to “Lexus lanes” softened was the over $200,000 income bracket, where 35 percent were against the idea.

Opposition to tolls did not appear to be rooted in financial concerns. The survey found only about a third of respondents said tolls in their area were too high, and 67 percent said they would find a way to route around the tolls. Rasmussen speculates that the primary reason the public rejects tolling is that 68 percent lacked confidence that interstate tolling funds would actually be used to repair roads and bridges.

Rasmussen is an independent survey firm that does not conduct commissioned polls seeking a certain outcome. State and federal transportation departments, on the other hand, have invested millions in taxpayer funds to support tolling efforts. In a 2007 report, the Washington State Department of Transportation (WSDOT) emphasized the need to “educate” the public to arrive at a positive result in polling.

“In communicating about tolling, presenting a unified message to the public is necessary for public understanding and support of tolling programs,” the report explained. “Confusion over the need for tolls, the use of toll revenues, or the options available to travelers will undermine the credibility of tolling programs and increase public resistance.”

WSDOT data show that tolling imposes 22 percent overhead costs on all transactions, compared to the 0.88 percent cost of collecting the gasoline tax (view report).

281 design flaw

281 design flaw: Can’t get on the toll road even if you wanted to
By Terri Hall
Examiner.com
April 15, 2014

The Alamo Regional Mobility Authority (or RMA) and its army of consultants recently unveiled its new design to purportedly ‘fix’ congestion on Highway 281 outside Loop 1604. The plan morphed from a completed, streamlined expressway design (upgrading the corridor adding two new lanes, needed overpasses, and access roads) to a hybrid toll-transit-HOV mix with fewer non-toll highway lanes than we have today — non-toll lanes that cease at Stone Oak Parkway.

Let’s breakdown what they’re planning to build and then tackle the flaws in the design. The improvements to Hwy 281 begin at Loop 1604 heading north to the Bexar County line (approximately 7.8 miles). Today there are six non-toll highway lanes (three in each direction) to Evans Road, where it goes down to five lanes. Then the existing freeway shrinks to four lanes (two lanes each direction) at Stone Oak Parkway where it continues to the county line and beyond. Today, Hwy 281 does not have access or frontage roads. It’s a divided highway with stop lights at the crossovers. The posted speed limit is 60 MPH.


The RMA’s tollway design shrinks the non-toll highway lanes from six down to four (from Loop 1604 to Stone Oak Pkwy.). That means two existing freeway lanes will be converted to toll ‘managed’ lanes, which is a double tax. The RMA counts the new access roads as the replacement for the non-toll capacity. At Stone Oak Pkwy., all the non-toll freeway lanes end and Hwy 281 becomes a six lane tollway. The only non-toll option north of Stone Oak Pkwy. will be access/frontage roads with slower speed limits and permanent stop lights.

Here’s just a taste of the 281 troubles:

1) Drivers cannot access the toll lanes from the 1604 interchange ramps
Anyone heading north on Hwy 281 from Loop 1604 will not be able to access the toll lanes even if they wanted to. The majority of the traffic in the 281 corridor is between Loop 1604 and Stone Oak Pkwy. Approximately 90,000 cars a day. If none of those travelers can access the toll lanes, who is this project helping? The volume of traffic diminishes after Stone Oak Pkwy. So all local traffic (those needing to exit somewhere between Loop 1604 and Stone Oak Parkwy.) will be scrunched into four non-toll lanes (two each direction) when today there are six (three each direction). Even with the new overpasses, there will be significant congestion on the non-toll lanes.

Now let’s travel in reverse. Anyone heading south on 281 cannot enter or exit the toll lanes between Stone Oak Pkwy. and Loop 1604. The only way to access the new northern interchange ramps onto Loop 1604 will be from the non-toll lanes. So, once again, all the traffic needing to travel on Loop 1604 will be squeezed into the four non-toll lanes when today there are six. A significant number of travelers need to take Loop 1604 and do not continue heading south on 281 toward downtown. Again, who is this project helping? Not those who need to get on Loop 1604. Not local traffic, nor local businesses. It’s designing permanent congestion in the corridor.

Indeed, the RMA admitted the toll lanes are geared toward those traveling in from outside the county – in other words, Comal County. However, the number of vehicles coming from Comal County are dwarfed by the numbers traveling within Bexar County, particularly in the section from Loop 1604 to Stone Oak Pkwy. Yet those travelers will have fewer non-toll freeway lanes than they have today and will not be able to access the toll lanes even if they wanted to. So arguably, the proposed tollway will make congestion in the corridor worse, not better.

2) Texas-sized bottleneck at Stone Oak Pkwy.
What the RMA proposes actually exacerbates the bottleneck at Stone Oak. The bottleneck happens at Stone Oak when the four non-toll freeway lanes end and all highway lanes north of Stone Oak become toll lanes, so anyone who cannot afford the toll lanes will have to exit en masse at Stone Oak. Since all the local neighborhoods south of Stone Oak cannot access the toll lanes even if they wanted to, it, too, will cause congestion on the four remaining non-toll main lanes (two each direction). The few who would be most likely to take the toll lanes all the way up to the county line (Comal County residents) will not be significant enough to diminish the congestion south of Stone Oak. The non-toll lanes will remain backed up as they are today due to the reduced capacity.

The options originally studied were 1) a complete expressway with overpasses and access roads (either all highway lanes tolled or all highway lanes non-tolled) or 2) an elevated tolled expressway. Now it’s a hybrid toll mess (two highway lanes tolled and four non-toll freeway lanes next to it for 3 miles, then eventually all six highway lanes become tolled for 4 miles). How it would ultimately be financed would not determine the final alternative, we were told. That’s no longer the case. There’s no complete non-toll option advancing for final approval by the Federal Highway Administration (FHWA). It’s either the hybrid tollway or no build. The RMA misled everyone.

3) Tolls will be as high as 50 cents a mile
The published toll rate range is 17 cents a mile up to 50 cents a mile, which is $2,000 in added toll taxes per commuter (and that’s if you only take one roundtrip 5 days a week). The toll rate isn’t even based on the cost of the project and retiring the debt, it’s called ‘congestion pricing’ that goes up and down with the level of congestion. Big daddy government will track every mile you drive with an electronic toll tag or you’ll pay 33-50% more to be billed by mail. If you dispute any of the charges or fail to pay, the RMA can block your car registration. If you fail to appear in court for alleged toll violations, a warrant for your arrest can be issued. The RMA has already stated on the record that it plans to charge the tolls in perpetuity. The tolls will NEVER come off 281 once they tap into this new revenue stream.

4) Via gets its own exclusive flyover ramp
The plan also includes an extravagant, exclusive Via transit lane and direct connect ramp ($56 million is the estimate available) to its planned Park-N-Ride facility at the corner of Stone Oak Pkwy. and Hwy 281. The ramp will be elevated above the roadway and overpasses. It’s higher than a double deck, estimated to be up to 75 feet in the air (as tall as the southern direct connect interchange ramps at 1604). The Via exclusive transit lane and ramp can only be accessed in two places – just north of Evans Road near the mega HEB and just north of Stone Oak Pkwy. The lanes dump into the toll lanes in the center of 281 so the transit riders needing to travel to Loop 1604 can’t take the transit lanes. It’s designed for travelers who are headed south of Loop 1604 on Hwy 281 with very limited stops until downtown.

Anyone who has to travel to Loop 1604 cannot exit the Park-N-Ride using the ramp, those travelers are dumped onto Stone Oak Pkwy. Any buses needing to get to 1604 will be forced to take Stone Oak Pkwy. I wonder how Stone Oak residents will like being jammed behind empty buses on an already congested Stone Oak Parkway? Buses do get a free ride on the toll lanes, though access is so limited to local traffic that it’s hard to imagine who will use them.

An estimated 1% of travelers use transit. Since the transit lane doesn’t even connect to 1604, it doesn’t connect to all the major destinations and job centers along 1604 and I-10 (like USAA and the Medical Center), so it limits the universe of riders exclusively to north-south traffic only. Much of the 281 traffic heading south peels off to 1604. Most people are not headed all the way downtown.

Knowing that the toll road isn’t remotely financially viable (can’t pay for itself with just the toll payers), the RMA wants to use the taxpayers as their bailout plan and loan guarantor by seeking a State Infrastructure Bank loan or a federal TIFIA loan rather than bonds backed exclusively by tolls (that taxpayers aren’t responsible for repaying).

5) Don’t fall for the ‘HOV rides free’
In order to get that free ride, you have to be a ‘registered’ carpool vehicle with an active TollTag account (which costs you money to keep open), and it usually requires 3 or more people to be in your car (based on the policies we’ve seen in all other Texas cities). So just hopping into the HOV/toll lane to take relatives to the airport or to go to lunch with colleagues won’t count as a qualified HOV ‘free ride.’ Moms in minivans shuttling kids to soccer practice also won’t qualify unless you register in advance and meet the qualifications as a ‘registered, declared’ carpool vehicle.

6) Super-overpass at Wilderness Oak and Overlook Parkway
To add to the bizarre design of this tollway, the RMA is going to do a continuous mega overpass over Wilderness Oak all the way to Overlook Parkway. Anytime a roadway goes elevated, the noise and dirt levels explode exponentially. So the adjacent neighborhoods will experience big boosts in road noise and dirt by the extended, elevated double overpass. Those with respiratory problems like asthma, beware!

Final meeting May 8
This hybrid tollway is too complex, too inaccessible, poorly conceived, and a Texas-sized bad deal for taxpayers that won’t solve the traffic mess out there. If any of these red flags concern you, then mark your calendar. Your last chance to weigh-in before the RMA sends the environmental study off to the feds for approval is at its 281 Open House on May 8 at Summit Christian Center off Marshall Road from 5:30 PM – 7:00 PM. Come see it for yourself and be sure to get your comments on the record. The expressway option should be all non-toll, period. This complicated, impractical tollway needs to be off the table.

Conflicts of interest

IMMEDIATE RELEASE

Contact: Terri Hall, Director, Texans Uniting for Reform and Freedom and Texans for Toll-free Highways
Phone:
(210) 275-0640

Krier’s conflicts of interest should keep him out of District 9 seat
Chairs board of Cintra’s SH 130 tollway

(San Antonio, TX – Monday, April 28, 2014) With Wendy Davis on the hot seat for conflicts of interest representing the North Texas Tollway Authority while a sitting senator on the Senate Transportation Committee, San Antonio voters need to be aware of similar conflicts brewing in their own backyard before they head to the polls. When deciding who should fill the San Antonio City Council District 9 seat vacated by Elisa Chan, they need to know about some serious red flags with Joe Krier. Krier worked for the law firm Bracewell & Giuliani, which happens to be Spanish toll road mega giant, Cintra’s, U.S. law firm. Krier also serves as Chairman of the Board for Cintra’s SH 130 tollway.

Both of these positions create major conflicts of interest for Krier as San Antonio faces imminent toll projects all over the north side on US 281, Loop 1604, I-10 and 1-35 (and eventually the entire city). If that’s not enough, Krier also served as Chair of the San Antonio Mobility Coalition (or SAMCo), the largest transportation lobby group in the Alamo city which lobbies for toll roads and multi-modal transportation (think street cars/light rail) as well as the President of the Greater Chamber of Commerce. His coziness with big business interests like Cintra and Zachry that want to takeover control of our public highways in long-term contracts designed to extract the highest possible tolls (up to 95 cents a mile in DFW), subordinates the taxpayers and the public interest to special interests.


Cintra trying to buy legislative seat, too?
Krier’s race isn’t the only one where Cintra would benefit. In the Texas House District 108 run-off in Dallas to replace Dan Branch (in a run-off himself for Attorney General), Morgan Meyer also works for Bracewell & Giuliani, hence Cintra. Cintra controls and operates two major toll facilities in existing corridors on I-820 (North Tarrant Express) and I-635 (LBJ, read about Bracewell & Giuliani’s work for Cintra on this project here).

So it looks like Cintra is attempting to buy more than just local city council races, it’s seeking to install its own people in the Texas legislature, too. As if all its lobbyists don’t garner enough influence in Austin, now they want to directly vote on whether certain Texas roadways are approved for such privatization deals, known as public private partnerships.

Loop 1604 in San Antonio is slated to be privatized. Remember, toll rates on such sweetheart deals run as high as 95 cents a mile. The Alamo Area Metropolitan Planning Organization (or MPO) is comprised of local elected officials, four of which are city councilmembers. Krier could end up on the MPO (taxpayers don’t get to decide who sits on the MPO) and cast direct votes on whether or not our highways become toll roads and whether or not these special interests get a hold of them for a half century at a time.

Many in the community already know Krier isn’t looking out for them. At a high profile public hearing on 281 several years back, Krier was loudly booed and shouted down for speaking in favor of tolling 281 despite public opposition as SAMCo’s emissary. Krier also received a poor reception in the Texas legislature where he testified regularly in favor of toll roads and handing our public roads over to special interests.

Having it both ways
Krier recognized the low-hanging fruit of the detested streetcar proclaiming to be against it, yet he testified in favor of multi-modal transportation many times as Chair of SAMCO and the Chamber. Perhaps he did so to distract from his long-standing love affair with an equally detested public policy — toll roads.

District 9 voters need to be aware of a crony capitalist like Joe Krier. There are others seeking this council seat with several new faces: Bert Cecconi, Donald Oroian and Corey Clark. However, Weston Martinez is the most familiar to voters with some name ID and substantial grassroots support. Martinez is also reliably anti-toll, fighting toll roads long before he ran for office. Early voting starts Monday, April 28 and runs through May 6. Election day is May 10. Be sure you vote in this important race. Meanwhile, the primary run-off election for that District 108 race with another Cintra employee, Morgan Meyer, is May 27. Chart Wescott is the anti-toll candidate in that race.

If you’re tired of politicians denying us a public vote on these multi-billion dollar toll tax schemes,  go to www.LetSAVote.com to sign the petition to put toll roads to a public vote.

# # #

TTH opposes Obama proposal

IMMEDIATE RELEASE

Contact: Terri Hall, Director, Texans Uniting for Reform and Freedom and Texans for Toll-free Highways
Phone:
(210) 275-0640

TURF & Texans for Toll-free Highways opposes Obama proposal to lift ban on tolling existing interstates

(San Antonio, TX – April 30, 2014) It’s official. Yesterday, the Obama administration announced the president’s support of lifting the ban on tolling existing interstates. But the two leading grassroots organizations fighting for toll-free highways in Texas, Texans Uniting for Reform and Freedom (TURF) and Texans for Toll-free Highways (TTH), vehemently oppose such a proposition.

“Slapping tolls on existing toll-free highways is highway robbery and double taxation. We’ve already paid for these roads, and now Obama wants us to pay for them again by charging us a toll for every mile we drive on them. We’re not going to stand idly by and let the president steal our freeways and impose such a confiscatory tax scheme without our consent,” promises Terri Hall, Founder and Director of both groups.

Secretary of Transportation Anthony Foxx expects to shore-up the federal highway trust fund that used to be fully funded by gas tax receipts alone, with corporate tax reform, which is code for corporate tax hikes.

“So everybody is going to be hit with tax hikes under Obama’s proposal. Corporations and commuters alike,” Hall notes.

Hall’s Texas organizations are not alone. A new national group, Alliance for Toll-free Interstates (ATFI), that boasts corporate members such as UPS and FedEx, also opposes lifting the ban on tolling existing interstates.

Miles Morin, spokesman for ATFI told Overdrive.com: “Tolling existing interstates is inefficient, causes traffic diversion, and increases supply chain costs that hurt businesses and consumers. Transportation infrastructure needs improvements, but of all the ways to fund them, tolling existing interstates is the worst.”

Former Senator Kay Bailey Hutchison ensured Texans were protected against tolls on existing interstates when she imposed a ban in 2007 when the Texas Department of Transportation sent a report to congress asking to do so. TURF and TFF want that protection to remain in place.

Trucking companies aren’t happy either. American Trucking Association and Owner-Operator Independent Drivers Association came out strong against the president’s bill citing tolls, tolling existing interstates, and using both toll revenue and gas taxes for projects other than highways — ie, rail and transit.

Hall agrees: “This president has a love affair with rail, but the cost to build and maintain a rail system far exceeds the cost of roadways. Since the vast majority of travelers prefer the convenience and flexibility of the personal auto, the priority should be on highways. Using taxes imposed on motorists for rail is a form of socialism and yet another example of taxes collected for one purpose being diverted to another.”

Gas tax hasn’t kept up
The federal gas tax is a fixed amount – 18.4 cents a gallon – that’s remained unchanged since 1993. Since it’s not pegged to inflation, the revenues haven’t kept pace leading congress scrambling to shore-up the highway trust fund that’s going bankrupt. It currently costs about one penny a mile to use a gas-tax funded road (closer to two cents when you add in state gasoline tax). With the national average price of gasoline at $3.69 a gallon, increasing the gas tax is a non-starter with most politicians, however. In contrast, tolls cost between 10 cents a mile up to 95 cents a mile when the toll project is privatized in a public-private partnership. So tolls represent an explosion in the cost to travel and dwarf any increase in the gas tax.

In 2009, when his former Secretary of Transportation Ray La Hood suggested a charge by the mile tax, Obama quickly slapped him down and said it was off the table. Imposing tolls on existing toll-free interstates is no less popular and is a form of charging travelers by the mile anyway.

Senate leadership has reached a tentative agreement on its highway bill that also includes tolling, public private partnerships, and billions in taxpayer-backed loans for toll projects. The House has not yet formally announced its bill. Conservatives favor reverting the highway program back to the states, but since most state highway programs receive approximately half of their funding from federal revenues, it’s unclear how this transition would occur.

To view a section by section analysis of the bill by the administration go here. View the full text of the president’s bill here.