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Transportation Commission Votes to Proceed with Bond Issuance

Proposition 14 Debt Will Advance Projects in 2009

AUSTIN -  In a unanimous vote today, the Texas Transportation Commission signaled its intent to issue $1.5 billion in Proposition 14 bonds. The debt will support development and construction projects in 2009.

Today's special meeting for the Transportation Commission was held in response to a letter received by Commission Chair Deirdre Delisi last week, in which Governor Rick Perry, Lieutenant Governor David Dewhurst and Speaker Tom Craddick urged the commission to exercise their ability to issue the bonds.

"The funds generated by the sale of these bonds will enable TxDOT to get needed transportation projects back on track," said Delisi. "I have instructed TxDOT staff to begin identifying projects across the state that are ready to immediately move forward and make use of these additional funds. I expect the staff to present these projects to the Commission in September."

In addition to encouraging the sale of bonds in their letter, the state's leaders identified measures they would address during the 81st Legislative Session in 2009 to address long-term transportation funding. One of the proposals would appropriate money from the state's General Fund for the Proposition 12 bonds approved by Texas voters in 2007.

Texas voters approved Proposition 14 highway bonding authority in 2003. To date, TxDOT has issued $3.1 billion in Proposition 14 bonds. The Proposition 14 bond program authorizes the Texas Department of Transportation (TxDOT) to borrow money on a short-term basis to improve cash flow and cash management and to issue general obligation bonds secured by the State Highway Fund to accelerate transportation projects. The bonds are repaid with money from State Highway Fund including motor fuels taxes and vehicle registration fees. Issuance of the bonds must be approved by the state Bond Review Board, which will meet later today.

The Texas Department of Transportation

The Texas Department of Transportation is responsible for maintaining nearly 80,000 miles of road and for supporting aviation, rail and public transportation across the state. TxDOT and its 15,000 employees strive to empower local leaders to solve local transportation problems, and to use new financial tools, including tolling and public-private partnerships, to reduce congestion and pave the way for future economic growth while enhancing safety, improving air quality and increasing the value of the state's transportation assets. Find out more at www.txdot.gov.