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

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

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.

July 2, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Brutalist grey department of housing and urban development building in Washington DC.

How Trump's HUD Budget Proposal Would Harm Homelessness Response

Experts say the change to the HUD budget would make it more difficult to identify people who are homeless and connect them with services, and to prevent homelessness.

1 hour ago - Shelterforce Magazine

Lancaster Boulevard with tree-lined median and wide sidewalks in Lancaster, California.

The Vast Potential of the Right-of-Way

One writer argues that the space between two building faces is the most important element of the built environment.

1 hour ago - Streetsblog USA

Sign in front of building for seior services center in St. Petersburg, Fl.

Florida Seniors Face Rising Homelessness Risk

High housing costs are pushing more seniors, many of them on a fixed income, into homelessness.

3 hours ago - WESH

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.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA