Journal of the House of Representatives of the Regular Session of the Fortieth Legislature of the State of Texas Page: 249
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HOUSE JOURNAL. 249
formation as to the present financial
status of the department, and pointed
out that the obligations first, for main-
tenance; second, for contracts let and in
course of construction; and third, for
allotments promised, will total an
enormous sum. The suggestion was
made in the belief that the information
gathered would show the necessity for
a stabilized income for the department,
if the present obligations of the depart-
ment are to be met, and a systematic
plan for a correlated system of highways
developed and carried out.
I further suggested that if you found,
as I believed you would, from an inves-
tigation of the Highway Department
that additional revenues are needed,
that you look to the gasoline tax as a
means of supplying this revenue. How-
ever, I hope as one result of the general
rearrangement of our taxing system,
suggested in my previous message, that
some form of stabilized income will be
made available to the Highway Depart-
ment sufficient to meet the growing de-
velopment of our highway system.
The heavy obligations imposed upon
the Highway Department by the preced-
ing administration and the necessity for
funds to match Federal aid which is
available to Texas, create the situation
in which I solicit your co-operation. I
am inclined to the belief that the nor-
mal revenues of the department would
be sufficient for the present year, except
for the need to meet these inherited
obligations and match the available Fed-
eral aid.
I am further of the belief that in the
growth and development of a highway
program commensurate with the tre-
mendous expansion of the State, the
time will come when the Highway De-
partment will be able to spend judi-
ciously more revenue than that now re-
ceived by that department under exist-
ing laws, but it is not my purpose to
ask for greater revenue now for the de-
partment, except as the exigencies of
the situation require. The department
must meet its obligations and it must
match the available Federal aid money,
if the best interests of the State are to
be served.
It seems to me that in determining
the needs of the department the items to
be taken into consideration are, first, the
obligations of the department, present
and prospective; second, the revenues of
the department, present and prospective.
Under the present and prospective
obligations of the department are to be
found, first, the cost of maintenance of
the designated highways; second, thecost of the completion of contracts now
in course of performance; third, the law-
ful allotment of funds heretofore made;
and fourth, operating expense or over-
hlead. To learn what is actually needed
by the highway fund the available Fed-
eral aid money which is to be matched
by funds of the State and counties
should be added to the obligations of
the department.
Coming under the present and pros-
pIective revenues of the department is
the cash on hand, the money received
from the license fees and the money col-
lected from the gasoline tax. I believe
that your investigation will disclose
that the present and prospective re-
sources will be insufficient to meet all
of the obligations and match the avail-
able Federal aid money.
A further matter which arises to com-
plicate the situation confronting you is
the request of the counties for addi-
tional money for the building and main-
taining of these roads under county
control. There is undeniable justice in
their claim for a better support of their
county roads; yet how this is to be ac-
complished without impairing the State
Highway Department is a problem of
considerable moment. I am firmly of
the opinion that in the readjustment of
our taxing problems, which I have here-
tofore suggested to you, a way can be
found to amply finance the State High-
way Department and give the counties
the necessary means to support their
local road programs. I believe that
your policy should contemplate meet-
ing the existing emergency and em-
brace the view that something will be
accomplished in the way of a permanent
solution of the question through the
general readjustment of our system of
taxation.
I am conscious of the fact that there
are opponents to an increase in the tax
now levied upon the sale of gasoline,
but to meet the situation, I believe that
irrespective of our personal views upon
this question that opposing minds can
find agreement on a program to meet
the urgent needs of the Highway De-
partment.
With this thought in mind I respect-
fully make the following suggestions for
your consideration:
Increase the tax now levied on gaso-
line to the basis of two cents on the
gallon. The measure should carry the
emergency clause. This should supply
approximately four million dollars ad-
ditional revenue to the highway fund.
The bill should provide by its own terms
that it be operative for a period of two
years, unless sooner repealed.249
HOUSE JOURNAL.
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Texas. Legislature. House of Representatives. Journal of the House of Representatives of the Regular Session of the Fortieth Legislature of the State of Texas, legislative document, 1927; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth193836/m1/253/: accessed June 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.