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									Texas Needs
-Added capacity for the portions of the corridor from San Antonio to Louisiana
border and El Paso
-Connections to intermodal ports and border crossings
-TCM connectivity for the Houston, San Antonio and El Paso centers

Transportation Project Financing Tools Available in Texas

Traditional Pay-As-You-Go Funding
TxDOT works with local transportation entities, including Metropolitan Planning
Organizations (MPOs), to develop transportation plans utilizing identified funding
available through future gas tax revenues. These revenues include both federal
and state gas taxes as well as other fee sources, and depending on the size of
the project may take several years, even decades, for funding to become
sufficient and available. The MPOs, through a Metropolitan Transportation Plan,
can prioritize projects within their local boundaries.

Regional Mobility Authorities (RMA)
A RMA is formed by one or more counties to manage and finance local
transportation projects. They can finance, design, construct, operate, maintain,
acquire, expand, or extend a project. Projects can be tolled or non-tolled. RMAs
can finance projects by selling bonds and using any tolls collected to pay off the
debt, or an RMA can enter into a Comprehensive Development Agreement as
described below. Even after the toll road is paid for, the community may continue
to keep the toll revenue for use on other local transportation projects within the
counties comprising the RMA, subject to the terms of any bond resolution or trust
agreement. These entities can also utilize Transportation Infrastructure Financing
and Innovation Act (TIFIA) loans.

State Highway Fund Revenue Bond Financing Program
A type of municipal bond where principal and interest are secured by revenues
such as tolls, charges or rents paid by users of the facility built with the proceeds
of the bond issue.

Toll Roads
With current gas taxes funding about only one-third of statewide transportation
needs, toll roads provide new funding opportunities for each community. The
dollars collected from drivers using the toll roads go toward paying for the project,
and any revenues can be used on the same project or to pursue other projects in
the area. Some toll projects may use toll equity funding if requested by a local
community and approved by the commission. TIFIA loans can also be utilized to
assist with toll road financing.

State Infrastructure Bank (SIB) Loans
SIBs offer eligible customers a range of loans and credit enhancement products
at typically lower-than-market interest rates for projects on the TxDOT system.
Because traditional funding sources are not readily available for many new
projects, communities have the option of borrowing money from the State
Infrastructure Bank to address their eligible transportation project needs sooner
rather than later. Also, transportation projects tend to be economic generators for
communities and increase tax revenues, helping to pay back the project loan.

Pass-Through Financing
A public or private entity can finance and construct a transportation project, with
TxDOT repaying the project cost by reimbursing the entity a negotiated dollar
amount based on the number of vehicles and miles. Payments could be paid
annually or semi-annually up to the cumulative amount of the project cost
negotiated between TxDOT and the entity.

Texas Mobility Fund (TMF)
The TMF allows TxDOT to issue bonds secured by money in the fund, which
allows the acceleration of mobility projects throughout the state. Administered by
the Texas Transportation Commission (the Commission), it is a revolving fund to
provide a method of financing for the construction, reconstruction, acquisition and
expansion of state highways, including costs of any necessary design and costs
of acquisition of rights-of way, as determined by the Commission in accordance
with standards and procedures established by law. The TMF may also be used to
provide state participation in the payment of a portion of the costs of constructing
and providing publicly owned toll roads and other public transportation projects in
accordance with procedures, standards and limitations established by law. The
TMF is funded by certain transportation related fees and revenues allocated to
the fund by law.

Comprehensive Development Agreements (CDA)
A public tolling entity, such as TxDOT, a Regional Mobility Authority, a County
Toll Road Authority or a Regional Tollway Authority, can partner with the private
sector to finance, design, construct, maintain, and/or operate a transportation
facility. Eligible facilities include toll road projects, a rail facility, or a toll project
combined with a rail project. Under current Texas law, the ability to enter into a
CDA will expire for TxDOT and RMAs as of August 2009, except for certain
existing CDA projects for which authority expires in August 2011. However under
current Texas law, County Toll Road Authorities and Regional Tollway
Authorities will maintain this procurement method.

Federal Roles Needed in Future Transportation Financing
• A national transportation plan that sets and reaches goals, not simply mandates
that processes be followed.
• Redefine the roles of Federal, State and local governments and the private
sector in the delivery of transportation solutions.
• Transportation policies that provide maximum flexibility in transportation
finance, procurement and operation of existing and new facilities.
• Transportation policies that allow states to develop and implement seamless
multimodal solutions that best achieve transportation goals

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