Proposition 12 – Highway Improvement Bonds Amendment

TEXAS – Proposition 12 – SJR 64

Brief background information: (provided by Texas Legislative Council)

Because the Texas Constitution forbids the state from taking on new debt, an amendment is required authorize general obligation bonds to use for funding certain projects.

Voters have previously approved issuance of up $1 billion in bonds backed by the State Highway Fund (known as Fund 6).

If passed, proceeds from the sale of bonds (not to exceed $5 billion) authorized by this amendment provides another source of revenue and can be used to pay for authorized highway improvement projects, costs associated with issuing the bonds, and making payments on related credit agreements. The state guarantees repayment of the debt.

Pro and Con – information provided by Jacci Howard Bearof About.com

Why Vote for Prop 12 There is not enough money currently available for funding current and future transportation needs to relieve traffic congestion.

Borrowing the money now will allow faster implementation of needed transportation projects including increasing the current road and bridge system capicity.

These general revenue bonds will have a lower interest rate than current funding.

Why Vote Against Prop 12 Opponents of Proposition 12 are primarily opposed to the method of funding these transportation projects.

There are other options — including raising gas tax rates or vehicle registration fees — that don’t require increasing state debt.

Using the state’s general revenue for transportation bonds means it won’t be available for other emergency needs that may arise. Transportation funding should come from the state highway fund.

Some opponents of Proposition 12 believe that the Texas Department of Transportation has not been entirely honest in fully disclosing expenditures and are leery of giving them more money.

— Edited for the web by Miguel Martinez