Innovative spending flexibility provides the cornerstone of this legislation.

Texas' funding increase is a result of natural growth, not a sweeping change in formulas.

WASHINGTON, D.C. — The U.S. Senate today passed the much-anticipated legislation (H.R. 3 - SAFETEA) to reauthorize the long-term funding of federal highway, highway safety and transit programs through fiscal year 2009. For Texas, it gradually increases highway funding formulas by 1.5 percent over 6 years.

It is estimated that of the proposed $294 billion spending package, Texas could receive close to $17.4 billion over the six-year term of the bill for core highway formula programs such as construction and maintenance.

It should be noted that the largest part of the gain is simply the natural result of increased gas consumption and is not a substantial change in the share (percentage) of federal gas tax Texans pay at the pump. According to Ric Williamson, Chairman of the Texas Transportation Commission, "When all is said and done, Texas gets only an 85 percent return on its contributions to the federal highway program, not the 90.5 percent as often quoted in Washington, D.C." This bill doesn't significantly change that reality. Texans will continue to send nearly 15 cents of every federal gas tax dollar they pay to other states. The important changes in the legislation are not related to formulas but to new means of leveraging limited funding through flexible means.

Over the life of SAFETEA, the changes in construction and financing flexibility will prove to have the most impact on the state. "Thanks to the hard work of Chairman James M. Inhofe and the members of the Environment and Public Works Committee, we in Texas will be able to better leverage the resources to specific areas of need," Williamson said. "New financing provisions will greatly enhance our state programs. This legislation provides federal momentum to the plans put in place by the Texas Legislature."

Williamson added, "I am deeply grateful to Chairman Inhofe for taking the time to understand the unique problems we face in Texas — a donor state with a high growth rate and the largest amount of existing roads to maintain in the nation. No other state has the same problems we have and clearly Chairman Inhofe has helped us out. We look forward to working with him as the final bill is written in conference committee."

Increasing state flexibility has been an important legislative priority of Governor Perry and the Transportation Commission. The Senate bill offers Texas a number of new tools to use in the development of the state's infrastructure. First and foremost, the legislation takes important steps in streamlining the design-build process, the preferred method of building large-scale projects. The Senate's Fast and Sensible Toll (FAST) Lanes Program will greatly enhance the development of projects such as Loop 1604 in San Antonio, State Highway 121 in the North Texas region, the Grand Parkway in Houston, and the Trans-Texas Corridor (both TTC IH-35 and TTC IH-69) by fostering public-private partnerships. The bill provides $15 billion in tax-exempt private activity bonds states can use to leverage funding for infrastructure development and improvements.

The Senate and House versions of this legislation move next to a conference committee where differences are reconciled and the final bill is written.

"Final passage of this legislation is vital to the economic growth of Texas." Williamson said. "The Texas Legislature is working right now to strengthen transportation law in Texas and we hope the Texas Congressional delegation will work to ensure that the final federal bill provides just as much innovation."

The current extension of TEA 21 expires on May 31, 2005.