Proposition 1

Background

On November 4, 2014 Texans approved Proposition 1, amending the state constitution to authorize a portion of severance taxes levied on oil and gas extraction, ordinarily deposited in the State’s Economic Stabilization (“Rainy Day” or ESF) Fund, to be directed toward unmet needs on the state highway system.

In December the Legislative Budget Board approved the Texas Department of Transportation’s (TxDOT) request to appropriate and distribute the $1.74 billion deposited into the State Highway Fund. The apportionment of funds to the Houston District and Houston-Galveston Area Council (H-GAC) is shown below:

FY 2015 Prop 1 Funding, Apportioned to Houston District and H-GAC

This table excludes Prop 1 funding allocated to the Beaumont District which may be used to implement projects in Chambers and Liberty counties.

As restricted by the Texas Constitution and Statues, Prop 1 funds may only be used to construct, maintain, and acquire rights-of-way on state highways other than toll roads.

Priority Areas of Investment for FY 2015

The Texas Department of Transportation, working with legislative committees and a Proposition 1 Stakeholder Committee, has identified the following priorities for Prop 1 funding:

• Addressing congestion in urban areas
• Providing additional connectivity for rural areas
• Maintaining the state’s existing road infrastructure
• Addressing additional needs due to increased oil and gas production

H-GAC has worked closely with the TxDOT Houston and Beaumont Districts to identify projects consistent with the Regional Transportation Plan and statewide priorities. The draft of list project priorities for our region is provided below:

• Project List and Map
• Proposition 1 presentation
• Display boards