ALTERNATIVE ROADWAY FINANCING METHODS: NATIONAL EXAMPLES AND RECENT EXPERIENCES IN TEXAS.

Methods of financing roadway improvements have undergone significant changes since the early 1970s. For a variety of reasons, traditional sources of highway revenues have not kept pace with transportation needs. Alternative financing methods that have been implemented in various areas of the country are reviewed. The Texas legislature recently passed two new approaches for state and local highway finance: transportation corporations and road utility districts (RUDs). Transportation corporations provide private land owners and developers an opportunity to expedite highway projects by conducting preliminary engineering studies and accepting right-of-way donations. RUDs, which are similar to municipal utility districts, are given the authority to issue bonds supported by property tax levies for local roads. These two methods provide an alternative infrastructure for the development of transportation projects and give state and local agencies additional sources for revenues.