Toll Roads Help Central Austin, Part IV
The city is talking about amending the agreements with TXDOT about right-of-way participation for some local highways which are now, obviously, being rebranded as toll roads. This applies only to US 183 (east of I-35), US 290W, and SH 71 (east of I-35).
Note carefully the following facts:
- The city of Austin was on the hook for tens of millions of dollars for these roads, if they were to be built as freeways. The chance that this money would be extracted from Austin is 100%.
- The money for these contributions from the city to the state was authorized by the City Council in past cost-sharing agreements with TXDOT, which would require that bonds be floated like these examples in which voters authorized the city to borrow money for other recent highways.
- That borrowed money must be repaid by taxpayers in the form of property taxes, sales taxes, and other sources of revenue (mainly utility kickbacks). There is no contribution from gas taxes to the City of Austin budget. None.
What this means, in effect, is that the people in Central Austin who are disproportionately taxed on their properties (due to higher land values, not necessarily higher incomes) are paying these bills, and those are the people who drive the LEAST. Residents of the more sprawling parts of Austin are somewhere in the middle (pay less than Central Austin, get some benefit), and the real winners are people living in Dripping Springs, Bastrop, etc who pay nearly nothing and get most of the benefit of these particular roadways.
Now that the roads are being re-floated as tollways, the city is free (pending this agreement) to use this money (again, property and sales tax and utility dollars, NOT gas taxes) within the city limits of Austin for the needs of actual Austin taxpayers. And the people who most benefit from the roadways will actually have to pay for them.
What a communist idea.
Summary: toll roads are a winner for residents of Austin.