TRANSPORTATION CORPORATIONS AND ROAD UTILITY DISTRICTS: THE TEXAS EXPERIENCE. FINAL REPORT

Transportation Corporations (TTCs) and Road Utility Districts (RUDs) were authorized in 1984 along with several other legislative enactments to provide new resources to the Texas Department of Transportation for building and improving highway infrastructure. TTCs, in particular, are a vehicle aimed at encouraging greater private sector funding of highway improvements. To date, eight TTCs have been commissioned. Three have been somewhat successful, three have either been dissolved or are inactive, and two are relatively new. The principal factor affecting the success of TTCs has been the state of the real estate market in Texas. In the late 1980's, land owners and developers have not been in a good position to contribute land or resources necessary for the successful operation of TTCs. Two RUDs, one in Denton County and one in Harris County, have been authorized. The RUD operates very much like a municipal utility district. RUD approval is more stringent, since they have the power to assess property taxes and fees to support road improvements. Because of previous experiences with county road districts and other utility districts, there is little to report that is new regarding RUDs.