Tuesday, March 3, 2009

A MODEST PROPOSAL

As many of you know I am against tolling the Grand Parkway. There has been some action on this issue here in Fort Bend County and statewide.

Senate Bill 792 states that market valuation means a project valuation that is based on agreed project terms and conditions, including initial toll rate and toll rate escalation methods. It takes account of the project traffic and revenue study, using agreed upon assumptions, an agreed project scope, market research, estimated costs of project finance, construction, operation and maintenance. SB 792 also allows the market valuation agreement to be waived.
In other words a market valuation is a financial-type appraisal that establishes the net monetary value of a toll project based on its expected revenues (from tolls and other sources) and its costs (financing, construction, and O&M) over the time frame established by the term of the agreement. Its an important tool to check the financial viability of toll projects.

The objective of the Market Valuation appears to be the quantification of the economic potential of a toll project. The way I read the statute, the market valuation study is the line of defense for common sense in funding these toll projects. It this requirement is waived, the Grand Parkway can be built as a tollroad whether it makes economic sense or not.

Texas stands to receive $2.25 billion in transportation funding from Washington, D.C. This funding is critical to maintain and upgrade our transportation infrastructure in Texas. It is also critical to stimulate the Texas economy. It will create jobs starting with the engineers who design these roads to the construction crews who build them.

The Texas Transportation Commission (TxDoT), appointed by Gov. Perry, has recommended that the East Region; including Beaumont, Bryan, Houston and Lufkin receive $431,516,770 for transportation projects. From this amount over 53%, or $231,000,000, will be spent on the construction of toll roads. These recommendations ignore the federal law that requires these funds to be spent in economically distressed areas and ignore the will of ordinary Texans who are opposed to our tax dollars being spent on Toll Roads and see these schemes as a type of double taxation.

Fort Bend has consistently been one of the fastest growing counties in the country for the last ten years. As a County Commissioner in Fort Bend County, I am on the front lines of mobility issues on a daily basis. Many of my constituents have a deep distrust of government and these actions by TxDoT only confirm that distrust. Since TxDoT’s recent recommendations I have been asked, ‘how is it that tax dollars will be spent on a road that will also be tolled’ and ‘aren’t roads that are paid for with tax dollars usually free?’ These are valid questions that Gov. Perry should be required to explain.

Unfortunately, Gov. Perry has taken the position that toll roads are the preferred method of financing our public roads in Texas. And many of our current mobility projects have been designed according to this policy. Tolling the Grand Parkway is a prime example of the shortsightedness of TxDoT and our regional planners. Powerful interest with goals other than mobility have been pushing this “outer-loop” for over 30 years and ignoring the other long-term mobility needs of the area. As a result, Segment E is one of the few “shovel-ready” projects in the Houston-Galveston area.

Now this shortsightedness is finally bearing fruit. If Segment E is funded from the stimulus money and finally constructed, exorbitant tolls from this segment will be used to finance and construct the remaining segments in Liberty, Montgomery, Brazoria, Chambers, and Galveston Counties. That means the citizens of Fort Bend County and North-west Harris County will be paying for those segments even though they never drive on them. From a mobility standpoint many of these remaining segments are useless. Miles and miles of the remaining pieces will cross open prairie where no one lives, will have little or no effect on traffic and are not needed. When our transportation dollars from Washington D.C. are desperately needed to get people to and from our population centers, it only seems reasonable that the federal stimulus money should be spent on actual mobility projects.

A solution to this ridiculous dilemma is for Gov. Perry to show some courage and demand that the legislature index the gasoline tax to inflation. After all, the gasoline tax is one of the fairer taxes, ‘the more you drive, the more you pay.’ Of course, if the Legislature decides to pass this tax, it must also insure that all of the tax revenue raised from gasoline taxes will be spent on roads. It can no longer be raided for other needs of the State. Gov. Perry should take a leadership role in making sure this happens. It will take courage, but it is the right thing for Texas.

In the mean time I will continue my crusade against tolling the Grand Parkway. There will be more opportunities in the future to kill this project. I thank you for your help.

15 comments:

  1. So where does all this put timeframe for construction of segment C? How much of the 2.5 billion is stimulas money? If it ignores federal law, as a law maker, are you not obligated to bring this to the attention of the federal government?

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  2. Hear, hear! I'm so tired of government of the corporations, by the corporations, and for the corporations.

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  3. "Since TxDoT’s recent recommendations I have been asked, ‘how is it that tax dollars will be spent on a road that will also be tolled’ and ‘aren’t roads that are paid for with tax dollars usually free?’ These are valid questions that Gov. Perry should be required to explain."

    This, for me, is the major problem with the current tolling projects and the tolling of already existing tax supported roads. It is double taxation and just another way to feed the cronies.

    How about we only accept the funding that we can use on "free roads" and skip the strings attached toll money. Shouldn't we be using the limited funding available to fix and maintain current roads? And why would anyone accept big government or even trust them? Certainly we don't trust them because of the co-optation factor by elite corporations feeding at the taxpayer trough.

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  4. I would like to see government proposing smaller budgets and contracting during these times rather than spending and borrowing more from foreign countries banks.

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  5. I'm with you up until proposing the increase in gasoline taxes. There is proposed legislation that will increase the cost of energy, which will in turn, increase the price of goods everyone must purchase, like food. So, I don't support increasing the gas tax. I support the State of Texas doing what responsible American families are doing. We are cutting out wasteful spending, in order to pay for what we truly need.

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  6. Good point! Government need to model what they are expecting of its citizens. Anything else is irresponsible.

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  7. "That is actually not how market valuation works...it is designed to extract the highest possible toll from the traveling public. The market value study is to see how much money they can make off the road using speculation, and then pull that amount out of the deal up front in order to make generations of Texans pay for it while they spend our money like bandits on yet more road projects. We opposed market valuation and vast majority of legislators want to repeal it. "

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  8. This comment was submitted earlier but was NOT to reveal my email address. Please honor that ANONYMOUS Request.

    "That is actually not how market valuation works...it is designed to extract the highest possible toll from the traveling public. The market value study is to see how much money they can make off the road using speculation, and then pull that amount out of the deal up front in order to make generations of Texans pay for it while they spend our money like bandits on yet more road projects. We opposed market valuation and vast majority of legislators want to repeal it. "

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  9. a large percentage of gas taxes already go to "other" projects and other states. Ask your dem reps why?
    Shouldn't the gas tax go to what it was intended to construct/maintain roads? Also when you're visting with your dem dem rep ask him why is Texas a "donor" state? Why are gas taxes paid in Texas by Texans going to Mass., etc. to build the "big dig". Richard you're just another taNspend dem you want to raise gas taxes so they can fund social projects.
    Here's a thought cut spending, quit creating government jobs and use the surplus and intended taxes, ie the "gas tax" to build roads.
    oink oink oink. taxNspend the dem way.

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  10. Interesting you would claim it is only a "dem" problem 9:07 given it was approved by many, many republicans too. It is the people who are getting screwed and partisan rancor won't help separate honest elected officials from dishonest political cronies (and that is not party specific). Offer something useful for a change.

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  11. John (wadefishin/jbb) why does your rhetoric never seem to end. You must have missed the last commission vote again and your hero Hebert talking about his opposition to property rate and CAD caps!

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  12. here let me help you...
    the repub Bob Hebert wants a 10% cut in spending in cty departments...
    dem Richard Morrison wants to raise the gas tax...thats why they're called taxNspend dems.

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  13. "Anonymous said...
    "John (wadefishin/jbb) why does your rhetoric never seem to end"

    Richard a man's word should mean something. You said you would not post anymore personal attacks yet you continue.

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  14. Whom has he attacked? He is not attacking anyone and according to his public statements he support and will meet the 10% reduction. Diane Wilson, another republican, was very concerned that Hebert wasn't taking this proposed cut seriously, not the pct. 1 commissioner. Better get your facts straight again and stop acting like some partisan political troll hack. It is your judge that has worked to hire lobbyist on our dime to oppose CAD and rate caps, very unconservative tax philosophy! Why don't you all go out and find or hire some real conservatives for a change 9:48.

    Mr. Morrison is on record opposing massive spending increases and other crony projects. Why won't your boy go out on that limb?

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  15. I would not support, in any way, the Grand Parkway being tolled. Just wanted to be clear we're on the same page.

    ...but for the sake of furthering your argument, I'm not sure I'd be toting that gasoline tax is one of the 'fairer' taxes. It's a textbook case of one of the more regressive taxes we have.

    Suggesting it is fair suggests that driving is some sort of luxury of which those who drive more should pay more. Unfortunately, Texas suffers greatly from urban sprawl thereby making driving an inevitable part of our lives. ...hence the tax on it hurts those with the least (since it's just a flat tax).

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