In-depth analysis of the J.A.C.K. model

Abstract

The Texas Transportation Commission (“the Commission”) is responsible for planning
and making policies for the location, construction, and maintenance of a comprehensive system
of highways and public roads in Texas. In order for the Commission to carry out its legislative
mandate, the Texas Constitution requires that most revenue generated by motor vehicle
registration fees and motor fuel taxes be used for constructing and maintaining public roadways
and other designated purposes.
The Texas Department of Transportation (TxDOT) assists the Commission in executing
state transportation policy. It is the responsibility of the legislature to appropriate money for
TxDOT’s operation and maintenance expenses. All money authorized to be appropriated for
TxDOT’s operations must come from the State Highway Fund (also known as Fund 6, Fund 006,
or Fund 0006). The Commission can then use the balance in the fund to fulfill its responsibilities.
However, the value of the revenue received in Fund 6 is not keeping pace with growing
demand for transportation infrastructure in Texas. Additionally, diversion of revenue to nontransportation
uses now exceeds $600 million per year. As shown in Figure 1.1, revenues and
expenditures of the State Highway Fund per vehicle mile traveled (VMT) in Texas have
remained almost flat since 1993. In the meantime, construction cost inflation has gone up more
than 100%, effectively halving the value of expenditure.