Oil and Gas Revenue May Fund Texas Roads

The nation's largest oil and natural gas producer is flush with revenue from energy production. If Gov. Rick Perry signs the bill supported by two-thirds of both chambers, voters will decide whether to use about $1.2 billion of it annually for roads.

2 minute read

August 12, 2013, 10:00 AM PDT

By Irvin Dawid


Florian Martin writes that it took only one day of a special third session for legislators to pass a transportation funding bill written by State Rep. Joe Pickett, D-El Paso, which will allow voters to decide whether or not to divert about $1.2 billion of oil and gas revenues from the state’s Rainy Day Fund to the state's highway fund. If Gov. Rick Perry, who had called a special legislative session just to resolve this matter, signs the bill, the measure will appear on the November 2014 general election as a constitutional amendment. 

But is it enough? Martin writes that "the Texas Department of Transportation (TxDot) has said that it needs $4 billion a year to keep up with road maintenance and congestion".

According to Pickett, the diverted revenue will primarily be used to pay down the debt that much of the state's 20-cent gas tax [40th lowest in nation (PDF)] is applied towards. It hasn't been raised since 1991.

State Rep. Steve Toth, R-The Woodlands says the final product is even better than what was initially proposed.

“Initially thought it’d only be about $800 million – still a lot of money. But thanks to the incredible growth of money coming in from the oil and gas severance tax, it’s more like $1.2-1.3 billion. It’s a huge, huge win for transportation.”

Aman Batheja and Ian Floyd of the The Texas Tribune wrote on July 27 that during the second special legislative session, leaders from both chambers agreed that "the Legislative Budget Board would be required to periodically set that minimum balance for the Rainy Day Fund" according to Pickett.

There is a nexus for using oil and gas revenues for road funding. TxDot executive director Phil Wilson has pointed to the need to address road damage caused by heavy trucks involved in energy production.

Tuesday, August 6, 2013 in KUHF Houston Public Radio

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 4, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

White and yellow DART light rail train in Dallas, Texas with brick building in background.

DARTSpace Platform Streamlines Dallas TOD Application Process

The Dallas transit agency hopes a shorter permitting timeline will boost transit-oriented development around rail stations.

May 28, 2025 - Mass Transit

Sun rising over downtown Los Angeles with tall palm trees visible in foreground. Image is bright orange-red indicating extreme heat.

LA County Creating Action Plan to Tackle Extreme Heat

Los Angeles County is creating a Heat Action Plan to help communities stay safe during extreme heat, with steps like adding more shade, improving buildings, and supporting the neighborhoods most at risk.

June 9 - Los Angeles County Chief Sustainability Office

Small silver car driving over wide soeed cushion on asphalt road.

Maryland Plans Quick-Build Complete Streets Projects

The state will use low-cost interventions to improve road safety in five Maryland counties.

June 9 - Fox Baltimore

Nighttime view of downtown Los Angeles through arches of new 6th Street Viaduct.

Downtown Los Angeles Gears Up for Growth

A new report highlights Downtown L.A.’s ongoing revival through major housing projects, adaptive reuse, hospitality growth, and preparations for global events in the years ahead.

June 9 - Los Angeles Downtown News

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.