Perry warns against inaction on funds for road projects

04/22/2008

Patrick Driscoll, Express-News

AUSTIN — After a veto and last-minute deal-making a year ago to thwart legislative efforts to freeze private toll road leases, Gov. Rick Perry declared victory, saying there was no moratorium.

But with state lawmakers raking through highway department finances and studying merits of tollway privatizations as they rev up for the 2009 legislative go-around, Perry on Tuesday sang a different tune.

Last year's session wasn't so great, he told more than 1,000 government and industry officials at the Texas Transportation Forum.

"The state can't afford a repeat of 2007," he said in a luncheon speech that ended the three-day event. "Members of the Legislature must understand that 'no' is not a solution. It is an abdication of responsibility."

Perry made it clear he's still hot for privatization as a key to solving what he calls a transportation funding crisis.

He referred to a federal announcement last month that states could tap into more than $400 billion in global investments to pay for roads, about eight times what Washington gives back to states annually.

Perry also welcomed state Senate Finance Committee Chairman Steve Ogden's idea to allow Texas retirement funds to be invested in toll roads, putting billions of more dollars into play, and he challenged others to step up with such innovations.

"Be willing to get a bloody nose every once in a while for a noble idea," he said.

The governor didn't mention the state's 20-cent-per-gallon gas tax, which has been losing ground to inflation since 1991. But he did call for an end to diverting such revenues away from transportation, which amounted to $1.6 billion, or a tenth of the highway fund this biennium.

After a splurge of bonds in recent years that more than doubled Texas Department of Transportation road projects, funding has since shriveled back to past levels. But now the department faces higher construction costs and fewer dollars coming from the federal government.

The Texas Transportation Commission on Thursday will consider approving $28.2 billion over the next 11 years, averaging $2.6 billion a year.

"That is not what I call progress," Perry said. "It's what I call a problem."

TxDOT could sink a few more billions of dollars in bonds into projects, which some lawmakers have demanded, but Perry, who appoints transportation commissioners, pulled the plug until a long-term funding strategy is locked in.

"Running up the credit card just pushes back the greater problem," he said. "I say no more Band-Aids."