August 9, 2007

BY DANNY GALLAGHER, McKinney Courier-Gazette

Sen. Kay Bailey Hutchison said if the North Texas Tollway Authority finalizes its deal for State Highway 121, the state of Texas will not have to give back 1 red cent in federal highway funding.

“They (the U.S. Department of Transportation’s Federal Highway Administration) are not going to ask for any money back that has already been spent on SH 121,” Hutchison said Wednesday during a visit to Dallas.

Back in June, Texas Department of Transportation officials said FHWA officials expressed concerns to them that if the NTTA won the approval to build and toll SH 121 over Cintra Concesiones de Infraestructuras de Transporte SA, FHWA would ask them to reimburse nearly $300 million in federal funds.

Michael Behrens, TxDOT executive director, received a letter Apr. 26 from Janice Weingart Brown, a FHWA division administrator, expressing concerns over new proposal considerations for a SH 121 comprehensive development agreement.

“We are concerned that TxDOT’s action could lead to violations of federal law and regulations regarding competition in the procurement process,” the letter read. “This could jeopardize TxDOT’s ability to use TIFIA (Transportation Infrastructure Finance and Innovation Act) funds on the SH 121 project.”

Hutchison said she spoke Tuesday with U.S. Transportation Secretary Mary Peters and she assured her no one would be asked to return any funding if NTTA’s deal goes through.

“When I saw the report, I called her immediately and I said we’ve talked about SH 121 back when the Legislature was passing the law that reopens the bidding and you’ve never said anything about forfeiting money or jeopardizing money that’s been spent and she’s said that’s absolutely right and that will not happen.

“She’s kept her word and she’s been very trustworthy and good to deal with ever since she’s been secretary,” Hutchison said. “I trust that this is over, that there will be no funds taken away that have been spent.”

She also said she believes Peters’ promise should put an end to federal funding concerns.

“I really think the issued is closed and I just wanted to get right on it so the people would not be concerned that there would be some bill submitted to the state that would take millions out of state highway funds,” Hutchison said. “People can now go forward knowing that there’s not going to be any kind of redaction of money that’s already been spent.”

The Regional Transportation Council will meet Thursday in Arlington at the North Texas Regional Council of Governments building to discuss updates on the Texas Transportation Commission’s minute order, revenue allocation and financial agreements for the highway project, according to the agenda.

Josh Hixson contributed to this report.