Bill attempts to divert 30% of toll funds from Harris County to City of Houston
HOUSTON, Texas (KTRK) -- $300 million in excess revenue from the Harris County Toll Road Authority was funneled directly to and split evenly among Harris County Commissioners last year.
A fight is now brewing over whether the City of Houston, the largest municipality the toll roads traverse, should get a cut.
State Senator Paul Bettencourt introduced SB2722. If passed, it would divert 30% of the excess toll revenue from the county to the city.
"Sixty percent of the toll road miles are in the City of Houston. Over 60 percent of the revenue is generated inside the City of Houston," Mayor John Whitmire said.
In statements shared with ABC13, several county commissioners referred to the bill as a "bailout" for the City of Houston and dismissed it as an effort to pay off the city's debt. Finance officials state Houston currently has a projected budget deficit upwards of $330 million.
"Especially in the dire straits that the city is in, we're talking about upwards of $100 million that could come into city coffers, At Large Position 1 Houston City Council Member Julian Ramirez noted on Wednesday.
Whitmire argues that the city is entitled to the money because "Houston first responders provide public safety for the users of the toll road." Whether that chunk is significant enough to warrant a cut of the excess toll revenue was the subject of debate at Houston City Council and a Texas Senate Transportation Committee meeting Wednesday.
District C Houston City Council Council Member Abbie Kamin said she was "very concerned about the strain that this bill is putting in terms of our relationship with the county."
When asked by ABC13 about Kamin's remarks, Whitmire rebutted, "We get elected within Houston. That's my responsibility. Quite frankly, I hope (Kamin) understands it's her responsibility to lookout for the city's best interests." He added, "It's nothing personal with the County Commissioners. They're my friends but Austin is probably not gonna continue to allow the county to run $300 million surpluses and not use it for mobility,"
In the SB2722 statement of intent, Bettencourt wrote, "In the beginning of 2020, it was found that there was a stark increase in the transfer of excess funds to the Harris County Commissioners Court. Upon more investigation, the Harris County Toll Road Authority (HCTRA) was found to be distributing their excess funds equally among all commissioners, irrespective of county road lane miles. It was found that a portion of this excess revenue was being put towards projects for non-drivers: sidewalks, bike lanes, bike paths, intersections, etc. The distribution of excess HCTRA funds is being guided by political formulation and not on a transportation-related basis. Toll revenue being diverted to matters unrelated to transportation projects continues to raise major concerns throughout the community."
"This legislation is an effort to divert transportation resources from Harris County to pay off the City of Houston's debt. It is unfortunate that the city is struggling to balance its budget. However, siphoning dollars from critical county projects is not the answer." Harris County Precinct One Commissioner Rodney Ellis said.
Senate Bill 2722 betrays the trust of Harris County voters by the legislature by hijacking county mobility funds and dictating that 30 percent of those funds would go to the city with no stipulation that those resources be used to improve transportation infrastructure. The bill would prevent much-needed improvements in high-traffic areas and Harris County's surrounding municipalities by basing disbursement on miles, rather than usage.
It also would put Harris County in the same desperate fiscal situation as the city of Houston.
"HCTRA is one of the best-run organizations in all of Texas. Chairman Nichols said so himself. This bill is a bad solution to fix a problem that belongs to the city. If passed, it would be the biggest bailout of a city in Texas history. I work hard to serve 17 other cities that are not Houston in my precinct, which includes all the freight traffic from the port, and my colleagues serve dozens of other cities across Harris County, not to mention all of the unincorporated areas. If the state forces us to bail out Houston, it will kill hundreds of transportation projects that would otherwise help the more than 2.5 million people who live outside the City of Houston, all because of the city's financial challenges. I remain committed to working closely with Mayor Whitmire. However, he should have discussed this with my colleagues and me before getting this bill filed at the 11th hour before the filing deadline," Harris County Precinct Two Commissioner Adrian Garcia said.
"Senate Bill 2722 is a bailout bill; nothing more, nothing less. I empathize with the City of Houston's financial challenges, which is why we have been a strong partner and have invested millions of dollars in the City on infrastructure and public safety projects. Yet, I oppose any unjustified attempt to divert County funds away from critical transportation projects that keep our entire region safe, resilient, and thriving," Harris County Precinct 4 Commissioner Lesley Briones said.
"Let me set the record straight on HB 5177. This bill did NOT originate with the City of Houston. It came from the State of Texas-specifically, a state senator who filed a similar bill last session (88th) in response to growing public outcry," State Rep. Jolanda "Jo" Jones said.
People were fed up that HCTRA surplus toll money was being used for bike lanes, trails, beautification, and projects that have nothing to do with the purpose of the toll road system. The people were right to be upset.
If there's a surplus, folks expect that money to go to things like:
- Lowering tolls
- Improving traffic flow
- Fixing roads
- Investing in public safety around the toll system
Instead, Harris County leaders have been using that money however they want.
With no objective formula, and no regard for the burden that toll road infrastructure has placed on the City of Houston, particularly public safety departments like HPD and HFD.
The result? A blatant disrespect for City of Houston and Harris County taxpayers, who pay both city and county taxes but literally get no services-except bike lanes in their neighborhoods that cause traffic and decrease the quality of life for the people actually living there.
Meanwhile, the county focuses most of its investment in unincorporated areas-which don't pay city taxes, but still get the full benefit of toll-related resources.
HB 5177 is about fairness. It forces the county to stop playing politics and start using the surplus based on facts:
Who maintains the most lane miles? Who provides the most public safety coverage? It sends 30% to the City of Houston to reimburse legitimate costs-not to "hijack" funds, but to repay what's owed for services rendered.
The remaining 70% must be used on transportation infrastructure that actually supports the toll road system.
"This is not a cash grab. This is not political. This is fixing a system that has ignored City of Houston residents for too long. It's about ending taxation without representation-and ensuring that people who live inside the city limits of Harris County finally get treated fairly. As a former At-Large City of Houston Council Member, I understand city expenses that are currently being drained and not reimbursed by how Harris County is spending the toll road surplus. And that's just not right. Somebody's gotta be the voice of reason-and one of those somebody's is me. And let me be clear: This is not a Republican thing. This is not a Democratic thing. This is a taxation without representation thing. And specifically, that taxation without representation is directed at citizens who live both in the City of Houston and Harris County, who-for whatever reason under the current Harris County regime-are not respected. So I'm courageous enough to do the right thing, despite some people's attempts to try to make it political. It's not political. It's what's right," Jones said.
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