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The Lege is going to have to spend some money

Whether they want to or not, there are a lot of issues that will be demanding attention and money from the Legislature when they convene in January. For example, there’s water.

House Speaker Joe Straus said Friday the state’s water supply will be among his priorities after years of inaction by lawmakers. In the previous session, the House balked at two bills intended to create the first permanent funding source for a new round of reservoirs, pipelines and other projects to avoid grave shortages in 2060.

The plan would cost an estimated $53 billion, which proved too much for a spending-averse Legislature two years ago.

“That’s always where the conversation breaks down,” Straus, a San Antonio Republican, said of the price tag. “With water, the numbers can be so daunting that it is tempting to throw up your hands.

“We need to begin making some progress. I don’t expect to complete it in one year, but we do need to take the first step.”

[...]

In the 2011 session, state Rep. Allan Ritter, a Nederland Republican, proposed a tap fee that water users would pay each month for the next 15 years. He also sought the transfer of $500 million from the System Benefit Fund, which was created to help low-income people pay utility bills.

The two bills, which supporters said would have generated $27 billion for the plan, died in a House committee.

Straus did not say how he would help fund the plan, but suggested all options would be on the table.

“I do not want to see a newspaper headline saying a company is uprooting from Texas to move to a water-rich state because we have not addressed this issue,” he said. “Without water, we cannot have a good future for this state.

“We have decisions, but we have no choice.”

The scary thing isn’t the price of this project, or that its price tag is triple what it was a decade ago but that the recent amelioration of the drought has removed any sense of urgency from the Lege to take action. The time to do something was in 2011 when the state was being slow roasted like a bag of coffee beans, but now that we’ve had some rain it’ll be easy enough for spending-averse legislators to rationalize procrastinating again. Despite Speaker Straus’ apparent determination, I will not be surprised if this gets punted.

There’s roads.

The Texas Association of Business has thrown its support behind a $50 hike in the annual fee Texas drivers pay to register vehicles, with the money earmarked for new transportation projects. Meanwhile, some key lawmakers favor dedicating to roads the sales tax from vehicle purchases that Texans already pay.

As the 2013 legislative session approaches, transportation advocates have been trying to draw more attention to severe shortages in road funding, stressing that delaying road work around the state will lead to more congested roads and more expensive fixes later on.

“The cost of doing nothing is very expensive,” said state Sen. Robert Nichols, R-Jacksonville, who was appointed chairman of the Senate Transportation Committee earlier this month.

[...]

“Clearly this is a difficult task, but the business community in Texas feels like it’s spending an awful lot of time waiting in traffic,” Hammond said. “This would be new money coming in for maybe $15-16 billion of bonds for road construction.”

Rather than raising a current fee, Nichols wants to take a tax that many Texans already pay and dedicate the revenue to roads. He is calling for a constitutional amendment to dedicate the sales tax on new and used vehicle purchases to expanding and maintaining the state highway system and to paying off transportation-related debt. The money currently goes into the state’s catch-all general revenue fund.

The change could be phased in slowly over 10 years so as not to “wreck the budget,” Nichols said. Though the amount of revenue raised for roads would be small at first, knowing that the revenue stream would grow would allow the Texas Department of Transportation to move quickly on perhaps $10 billion worth of new projects, he said.

Nichols predicted that the public would back such a measure because it makes intuitive sense.

As long as you overlook the fact that it won’t bring any new revenue into the system, thus meaning that other parts of the budget would be sacrificed for roads, then sure, it makes sense. It’s just undoing what’s been done before, with funding for things like DPS coming out of the gasoline tax. Raising the gas tax and indexing it to the inflation rate for construction is still the best option, but the increased registration fee at least has the merit of being new revenue and having some support behind it to begin with.

All that’s without even getting into Medicaid, which remember was underfunded by five billion dollars last biennium, or public education, for which an array of freshman Republicans are claiming they support despite the $5 billion they cut from it. (State Rep. Mike Villarreal passed along this handy chart of how much those cuts affected each ISD in Texas.) Whether we expand Medicaid or not, we will be spending more money on it because we have such a large number of poor, otherwise-uninsured residents. I have no idea how the next Legislature is going to deal with these issues – burying their heads in the sand and denying the existence of the problem is always the strong favorite, with obfuscating the issue a close runner-up – but like it or not, they’re there to be dealt with.

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One Comment

  1. [...] as what’s going to happen with the budget next session, as much as I want to agree with Kuff, The Lege is going to have to spend some money, I don’t think that’s how the GOP sees it at all. This is the chance they’ve been [...]

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