On Nov. 4, 2014, Texas voters overwhelmingly approved the ballot measure known as Proposition 1 (Prop 1), authorizing a constitutional amendment for transportation funding. Under the amendment, a portion of oil and gas tax revenues that typically go into the Economic Stabilization Fund will be deposited to the State Highway Fund. The amendment did not create any new taxes or fees. The ballot proposition read:

Proposition 1

“The constitutional amendment providing for the use and dedication of certain money transferred to the state highway fund to assist in the completion of transportation construction, maintenance, and rehabilitation projects, not to include toll roads.”

The Texas Comptroller of Public Accounts certified that $1.74 billion would be available for transfer to the State Highway Fund for FY 2015. Authorization to access these funds was granted by the Legislative Budget Board (LBB) and the Office of the Governor on Dec. 15, 2014.

Locally elected officials, planning organizations and TxDOT officials collaborated to identify projects that effectively address the needs outlined for the use of the funds. This collaboration resulted in the list of projects included in an amended Unified Transportation Program (UTP). This plan was approved by the Texas Transportation Commission (TTC) in February 2015.

TxDOT began awarding contracts for Prop 1-funded projects in March 2015, and expects to let all of the Prop 1 projects by the end of 2015.

For fiscal years 2016-2017, the General Appropriations Act (84th Legislature, Regular Session) authorized Prop 1 funds to be allocated by the following percentages using existing formulas adopted by the TTC:

  • 45 percent distributed to metropolitan planning organizations (MPOs) to address mobility and added capacity in urban areas (Category 2 mobility formulas)
  • 25 percent distributed to TxDOT districts to address regional connectivity in rural areas (Category 11 formulas)
  • 20 percent distributed to TxDOT districts to address maintenance needs (Category 1 maintenance formulas)
  • 10 percent distributed to TxDOT districts for roadway safety and maintenance in areas of the state impacted by the energy sector

The Prop 1 funding FAQ is available for additional information.

2015 Contract Letting PDF
March (First Round)

More Information

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