DALLAS The Texas Senate Transportation Committee approved two measures backed by the state’s top leaders that would divert up to $2.5 billion per year from vehicle sales taxes to highway projects.
Senate Bill 5 and a companion bill Senate Joint Resolution 5 won approval by an 8-1 vote.
State Sen. Rodney Ellis, D-Houston, opposed the measure because he said the funding might be needed for education or other needs as the 2015 session proceeds.
“I’m just not sure we’re looking at the whole picture,” Ellis said. “I’m going to vote no’ today because I hope it does encourage dialogue.”
The bill by state Sen. Robert Nichols, R-Jacksonville, chairman of the Senate Transportation Committee, would send the first $2.5 billion in annual car sales tax revenue to the state’s general fund. The next $2.5 billion collected would go to the state highway fund. Any revenue collected beyond $5 billion a year would be split evenly between the general fund and the highway fund.
If SB 5 and SJR 5 pass, they will need voter approval in 2016 as a constitutional amendment. Lt. Gov. Dan Patrick and Gov. Greg Abbott have expressed support for the measure. Abbott said in his State of the State address that he wants to increase transportation funding by $4 billion per year without increasing taxes, fees or tolls.
“Gov. Abbott campaigned on a plan to dedicate $4 billion to transportation funding, and he showed his commitment to this issue last week by declaring transportation funding an emergency item,” said Scott Haywood, president of a lobbying group called Move Texas Forward. “We are very encouraged by the actions that the leaders of the Legislature have already taken this session.”
Haywood joined Patrick and Nichols at a rally at the state Capitol Feb. 24, the day before the committee vote. Move Texas Forward includes chambers of commerce from across the state and heads of some of the largest trade associations in the state.
