SRC-JEC H.C.R. 82 78(R)   BILL ANALYSIS


Senate Research Center   H.C.R. 82
78R9799 MTD-DBy: Campbell (Barrientos)
Infrastructure Development and Security
5/6/2003
Engrossed


DIGEST

An integrated, safe, and adequately financed  transportation system is a
critical component of the economic, social, and environmental well-being
of both the United States and Texas.  The Highway Trust Fund was
established by the Highway Revenue Act of 1956 as a mechanism to finance
an accelerated highway program, including the Interstate Highway System.
The revenues used to finance the trust fund are derived from federal
excise taxes on highway motor fuel and certain truck-related taxes
collected from motorists in all 50 states and paid into the federal
Highway Trust Fund.  Federal law requires that the money paid into the
trust fund be returned to the states in accordance with legislatively
established formulas that are recalculated every six years in
reauthorization legislation. Most recently, the Transportation Equity Act
for the 21st Century (TEA-21) was passed in 1998. 

Due to funding disparities, 26 states, known as donor states, receive less
than their fair share of the federal fuel taxes that their citizens have
paid into the trust fund.  From 1956 to 2001, Texas received an average
rate of return of 78 percent on the funds sent to Washington.  Currently,
the United States Congress is drafting legislation to reauthorize TEA-21,
which guaranteed a minimum rate of return of 90.5 percent.  A coalition of
the donor states is seeking a guaranteed rate of return of 95 percent of
their share of contributions to the federal Highway Trust Fund, calculated
against all dollars being distributed to the 50 states.  A 95 percent rate
of return would allow Texas to better address its highway construction,
repair, and maintenance needs.  Highway projects enhance mobility, improve
air quality, foster economic development, and support thousands of jobs in
Texas. 

PURPOSE

The following resolutions are submitted:

That the 78th Legislature of the State of Texas hereby respectfully
request the Congress of the United States to provide equity funding to
Texas by increasing the rate of return from the Highway Trust Fund to 95
percent of Texas' contributions to the fund. 

That the Texas secretary of state forward official copies of this
resolution to the president of the United States, to the speaker of the
house of representatives and the president of the senate of the United
States Congress, and to all the members of the Texas delegation to the
congress with the request that this resolution be officially entered in
the Congressional Record as a memorial to the Congress of the United
States of America.