HomeMy WebLinkAboutTexas Department of Transportation - Public Financial ReportTEXAS DEPARTMENT OF TRANSPORTATION
Popular Annual Financial Report
For the Fiscal Year Ended August 31, 2021
Table of Contents
Popular Annual Financial Report - Fiscal Year 2021 | 1
We are pleased to submit the Popular Annual
Financial Report (PAFR) of the Texas Department of
Transportation (TxDOT) for the fiscal year ended Aug.
31, 2021. This PAFR is a representation of the Texas
Annual Comprehensive Financial Report (ACFR) for the
2021 fiscal year.
The PAFR contains information that has been carefully
drafted to include most important information in an
easy-to-understand manner. The goal of the PAFR is to
keep both the residents and stakeholders of the state
updated on the financial activities of the department.
The financial summary analyzed in this report was
taken from the audited Annual Comprehensive
Financial Report of the Texas Department of
Transportation. The ACFR was prepared in conformity
with accounting principles generally accepted in the
United States of America (GAAP), and independently
audited by Crowe LLP. This summary report, however,
remains unaudited. Both documents are available
on TxDOT’s webpage at https://www.txdot.gov/
government/reports/finance.html.
TxDOT Overview ..........................................................2
Organizational Structure and Management ................3
TxDOT at a Glance ......................................................4
2021 Major Initiatives: Texas Clear Lanes ..................5
2021 Major Initiatives: Operational Highlights ...........5
2021 Major Initiatives: Finance and Technology .........7
2021 Awards ..............................................................8
Economic Condition .................................................10
Funding Sources .......................................................11
Financial Summary: Management’s Discussion and
Analysis ....................................................................13
Statement of Net Position ........................................14
Changes in Net Position ...........................................15
Government-wide Revenue and Expense Summary....17
Governmental Fund Highlights ..................................18
Short and Long-Term Assets .....................................20
Capital Assets ..........................................................20
Long-Term Debt ........................................................21
Future Financial Planning .........................................22
Definition of Terms ...................................................23
Marc D. Williams, P.E.
Executive Director
Stephen R. Stewart, CPA
Chief Financial Officer
Prepared by
Financial Management Division of the
Texas Department of Transportation
Contact Us
Telephone
512-463-8588
Address
125 East 11th Street
Austin, TX 78701
Website
txdot.gov
TxDOT Overview
Texas Department of Transportation
As an agency of the state of Texas, and headquartered
in Austin, TxDOT operates under the direction of an
executive director and is governed by the five-member
Texas Transportation Commission.
TxDOT has the statutory responsibility to coordinate,
plan, develop, and manage the operation of the state’s
highway system, as well as manage grant funding for
public transit, aviation, maritime operations, traffic
safety, and other services.
TxDOT’s activities cover 25 districts throughout the
state; Abilene, Amarillo, Atlanta, Austin, Beaumont,
Brownwood, Bryan, Childress, Corpus Christi, Dallas,
El Paso, Fort Worth, Houston, Laredo, Lubbock, Lufkin,
Odessa, Paris, Pharr, San Angelo, San Antonio, Tyler,
Waco, Wichita Falls, and Yoakum.
VALUES
People: People are the Department’s most important
customer, asset, and resource. The well-being, safety,
and quality of life for Texans and the traveling public
are of the utmost concern to the Department. We
focus on relationship building, customer service, and
partnerships.
Accountability: We accept responsibility for our actions
and promote open communication and transparency at
all times.
Trust: We strive to earn and maintain confidence through
reliable and ethical decision-making.
Honesty: We conduct ourselves with the highest degree
of integrity, respect, and truthfulness.
VISION
A forward-thinking leader delivering mobility, enabling
economic opportunity, and enhancing quality of life for
all Texans.
MISSION
Connecting You With Texas.
GOALS
Deliver the Right Projects: Implement effective planning
and forecasting processes that deliver the right projects
on-time and on-budget.
Focus on the Customer: People are at the center of
everything we do.
Foster Stewardship: Ensure efficient use of state
resources.
Optimize System Performance: Develop and operate an
integrated transportation system that provides reliable
and accessible mobility, and enables economic growth.
Preserve our Assets: Deliver preventive maintenance
for TxDOT’s system and capital assets to protect our
investments.
Promote Safety: Champion a culture of safety
Value our Employee: Respect and care for the well-being
and development of our employees.
2 | Popular Annual Financial Report - Fiscal Year 2021
Organizational Structure and Management
The Texas Department of Transportation is governed by the five-member Texas Transportation Commission (TTC),
and an Executive Director selected by the commission.
Commission members serve overlapping six-year terms and are appointed by the governor with the advice and
consent of the Texas Senate. The commission performs six major duties which include, planning and making
policies, overseeing the design of highways, developing statewide transportation plans, awarding contracts, fostering
the development of public transportation, and adopting rules for the operation of TxDOT.
The Commission provides statutory oversight for our agency, where the Executive Director and senior administrators
oversee TxDOT’s day to day operations.
Transportation Commission
Executive Director M. Williams
Chief Engineer
Hale
Chief Administrative Officer McMonagle
Chief Financial Officer
S. Stewart
Director District Operations
Allen
Chief Information Officer
Selissen
Contract Services K. Stewart
Fleet Operations
Pratt
Human Resources
McMillan
Procurement
Wood
Support Services
B. Anderson
Project Finance, Debt & Strategic Contracts Asher
Financial Management
Landry
Toll Operations
T. Johnson
Director Project Development
*Barth
Director Engineering & Safety Operations
Simmons
El Paso
Trevino
Fort Worth
C. Johnson
HoustonPaul
Laredo
D. Salazar
Lubbock
Warren
LufkinMorris
Brownwood
Rmeili
San Antonio
Gallegos
Information TechnologySelissen
Alternative DeliveryVacant
Environmental Affairs
Booher
Professional Engineering Proc. ServicesRodin
Right of Way
Madsen
Transportation Programs*Barth
Bryan Bohne
Childress
Lankford
AbileneAllbritton
Amarillo
B. Johnson
Atlanta
B. Williams
Austin
Ferguson
Corpus Christi
Olivarez
DallasBur
Bridge
Bettis
Construction
Milligan
OdessaSpeed
Paris
Paramanantham
Tyler
Webb
Beaumont
Gonzalez
Pharr
Alvarez
San Angelo
Cowen
Waco
Swiatek
Wichita FallsBeaver
Yoakum
Horst
Deputy Executive Director Planning & Administration Hendrickson
Public Transportation
Gleason
Rail
Davis
MaritimeKalhagen
Occupational Safety
S. Salazar
AviationHarmon
Civil RightsBryant
Chief of Staff
Griss
Chief Audit & Compliance Officer Ybarra
Director Strategy & Innovation
D. Anderson
Director Communications & Customer Service Kaufman
Strategic Planning*D. Anderson
General CounselGraham
Research & Technology Implementation
Pete Communications Hallmark
Travel Information
Henderson Maintenance
Stevenson
Materials & Tests
Barborak
Traffic Safety
Chacon
*Interim
Texas Department of TransportationEffective 12/22/2021
Deputy Executive Director Program Delivery Barth
Design
Ramthun
Compliance Alexander
Internal Audit Otto
GovernmentAffairsHaddican
Director Planning & Modal Programs Vacant
Transportation Planning & ProgrammingButler
Popular Annual Financial Report - Fiscal Year 2021 | 3
J. Bruce Bugg Jr.
Chairman
Laura Ryan
Commissioner
Alvin New
Commissioner
Robert C. Vaughn
Commissioner
TxDOT at a Glance
Full Time Equivalent (FTE) Positions by Job
Function as of Aug 31, 2021
Job Function FTE
Architecture 36
Civil Rights/Bus Opportunity 22
Engineering/Engr Support 3,972
Environment 163
Exec/Admin/Clerical/Legal 1,022
Finance/Accounting 209
General Servs/Contracts/Purch 535
Human Resources 148
Information Technology 179
Laboratory/Materials 195
Maint/Skilled Craft/Ferry Ops 4,899
Occupational Safety 83
Other 18
Plan/Aviation/Pub Trans/Legis 448
Right of Way 162
Travel/Public Information 166
Grand Total 12,257
Traffic and Toll Revenue - Toll Roads
(Last Two Fiscal Years)
2020 2021
Annual Vehicle
Transactions $302,596,110 $329,067,993
Annual Toll Revenue, Net $371,837,606 $346,545,218
Increase/Decrease ($48,381,673)($25,292,388)
Toll Revenue Percentage
Change (11.5)%(6.8)%
Toll Rate per Transaction 1.23 1.05
Schedule of State-Owned Centerline Miles
(Last Two Calendar Years)
2020 2021
Interstate highways 3,459 3,463
U.S.highways 11,852 11,860
State highways 16,404 16,420
Farm or Ranch to Market roads 40,853 40,857
Frontage roads 7,685 7,769
Park roads 352 351
Total Miles 80,606 80,720
Schedule of Rated Lane Miles Conditions
(Last Two Fiscal Years)
2020 2021
Total Lane Miles 198,700 201,225
Rated Lane Miles 197,188 200,030
Good or Better Lane Miles 175,094 178,643
% Good or Better Lane Miles 88.8%89.3%
% Change from Prior Year 1.9 % 2.0%
TxDOT Construction Projects in Progress (and/or
Starting Soon)
District Projects Estimated Cost
Abilene 286 $316,172,642
Amarillo 248 $722,483,012
Atlanta 433 $401,449,667
Austin 316 $2,579,104,060
Beaumont 295 $1,500,893,971
Brownwood 248 $214,082,646
Bryan 450 $846,593,733
Childress 80 $97,370,475
Corpus Christi 281 $1,698,779,826
Dallas 494 $4,464,701,708
El Paso 245 $1,271,306,341
Fort Worth 322 $1,542,866,050
Houston 434 $5,552,966,838
Laredo 139 $506,378,674
Lubbock 232 $468,623,631
Lufkin 256 $549,913,394
Odessa 179 $935,143,221
Paris 403 $512,424,830
Pharr 318 $1,038,601,891
San Angelo 196 $310,289,853
San Antonio 415 $4,070,539,776
Tyler 299 $389,926,096
Waco 232 $854,553,455
Wichita Falls 249 $462,650,011
Yoakum 440 $1,279,936,638
Totals 7,490 $32,587,752,439
4 | Popular Annual Financial Report - Fiscal Year 2021
Popular Annual Financial Report - Fiscal Year 2021 | 5
2021 Major Initiatives: Texas Clear Lanes
The Texas Clear Lanes is a statewide strategic plan to
provide congestion relief through non‐tolled roads and is
focused on five major metropolitan areas: Austin, Dallas,
Fort Worth, Houston, and San Antonio. Representing
over 65 percent of the state’s population, these areas
are also home to 92 of the “Top 100” most congested
roadway segments in the state.
Here are some major fiscal 2021 Texas Clear Lane
Program successes:
Phase I of the IH 35E Clear Lanes Project between IH 30
and Oak Lawn Avenue in Dallas, was completed in 2021.
This added new collector‐distributor lanes next to IH 35E
to maintain traffic flow on the mainland.
TxDOT broke ground on the Oak Hill Parkway in the
Austin District. The design added frontage roads,
flyovers, and paths for bicyclists and pedestrians.
2021 Major Initiatives: Operational Highlights
Road to Zero
The Texas Transportation Commission has set a goal
of zero crash fatalities by 2050, with a starting goal of
cutting fatalities in half by 2035.
With an additional allocation of $300 million toward
roadway safety improvements in 2021. TxDOT will
continue investing in the best engineering practices to
make roads safer, address safety education, and assist
in the enforcement and safety awareness programs.
Amid Global Pandemic, Other Challenges, TxDOT
Continues to Execute on Projects Statewide.
Despite the global pandemic in 2021, TxDOT has
continued with its momentum, and currently has $24
billion worth of projects under construction statewide.
The Commission also awarded an extra $600 million
toward safety improvements in addition to the safety
components and dollars already committed to every
project.
IH 635/SH 121 Interchange Project in the Fort Worth
District was completed six months ahead of schedule.
Providing immediate traffic relief by adding new lanes,
widening bridges, and adding direct connectors for FM
2499 and SH 26.
6 | Popular Annual Financial Report - Fiscal Year 2021
Facilities Master Plan
Within the fiscal year of 2021, TxDOT started the 4th
year of its 10-year Facilities Master Plan.
TxDOT completed 72 statewide security upgrades and
went to contract on 24 additional security projects at
its buildings around the state. It completed 12 capital
repair projects and scheduled 10 more for large building
renovations.
TxDOT finished building new area engineer and maintenance
offices in Rockport and Kaufman. It has designed and
contracted 14 more buildings throughout the state.
Service Concession Arrangements
As of Aug. 31, 2021, TxDOT has entered into ten
agreements that are classified as service concession
arrangements (SCA) under the definition established by
the Governmental Accounting Standards Board. An SCA
is an arrangement between TxDOT and an operator with
the following benefits:
Improve mobility by expanding existing road capacity
and introducing managed toll lanes, traditional toll
lanes and other strategies aimed at reducing traffic
congestion.
Enable TxDOT to deliver these projects faster than
would be possible using traditional funding sources.
Shift the majority of the financial risk to the operator.
TxDOT may enter into SCAs with both public and private
operators. At the end of these arrangements, operations
and maintenance of the projects will transfer to TxDOT.
The state of Texas retains ownership rights and title to
all assets associated with an SCA. The following table
summarizes the status, term and duration of each
currently active SCA as of Aug. 31, 2021.
Transit Funding
With help from federal COVID-19 relief funding, the
Texas Transportation Commission approved $89 million
in transit funding at its June 2021 meeting. It was
the largest amount of funding at one time for transit
agencies across the state. This funding supports
equitable, reliable transit services that are an essential
part of life for many people across Texas.
These funds support rural and urban transit services
in over 96 percent of the state’s land area, serving 41
percent of the state’s population.
State funds: $35 million
Federal funds: $54 million
These funds also included over $7 million for selected
public transportation projects that address the needs
of seniors and individuals with disabilities. There were
39 projects across the state selected in a competitive
process to receive funding, including:
Valley Metro in the Lower Rio Grande Valley
Spartan Public Transportation in the Levelland area
South East Texas Regional Planning Commission in
the Beaumont area
Service Concession Arrangements as of August 31, 2021
Arrangement Name Construction Status Term of
Concession
Concession
Begin
Concession
End
IH 10 "Katy Managed Lanes"Complete 46 years 2010 2055*
SH 130 Segments 5 and 6 Complete 50 years 2012 2062
SH 121 Concession Complete 50 years 2009 2059
North Tarrant Exp Seg 1 and 2-West Complete 52 years 2009 2061
North Tarrant Exp Seg 3A and 3B Complete 52 years 2009 2061
LBJ/IH-635 Managed Lanes Complete 52 years 2009 2061
Grand Parkway Seg D, E, F1, F2, G Complete 40 years 2013 2053*
Grand Parkway Seg H - I Under Construction 36 years 2018 2053*
SH 288 Complete 52 years 2016 2068
North Tarrant Exp Seg 3C Under Construction 42 years 2019 2061
* Estimated. Concession period extends until Harris County/GPTC is fully reimbursed for costs of construction and
debt service.
Popular Annual Financial Report - Fiscal Year 2021 | 7
2021 Major Initiatives: Finance and Technology
ITD Initiatives
Here are a handful of accomplishments the Information
Technology Division has realized in fiscal 2021.
TxDOTCONNECT
TxDOTCONNECT is a custom‐built, web‐based application
to automate the delivery of the agency’s transportation
programs by modernizing and standardizing systems
that support portfolio/program management, project
management, letting management, and Right of Way. The
application will replace up to 40 legacy systems which
will reduce the number of systems, manual processes,
and system maintenance costs. TxDOT launched the
system in early 2019. Since that initial release, TxDOT
has achieved tremendous success by deploying three
additional releases in the fiscal year 2021.
TxDOT Cyber Security Operations Center
TxDOT has established a 24/7 Cyber Security Operations
Center that provides security monitoring and incident
handling for all TxDOT network environments. On average
this has led to the team detecting and responding to
over 30 million potential attacks against TxDOT monthly.
Bandwidth Upgrade
All District Office locations have been upgraded to at
least 1G bandwidth speeds. There are 72 percent of
offices identified in Sweep 1 that have been upgraded as
well. Many Maintenance Offices have been upgraded to
40M which is four to eight times the bandwidth their site
once had. Quality of Service and Class of Service updates
have also been enabled to prioritize voice and data traffic.
TxDOT Geospatial Portal
Emergency Response Application delivers TxDOT
vehicle locations, weather, and road conditions to
emergency operations staff for a better response
during weather events.
Bridge Incident suite is used by bridge inspectors
to collect details in the event of any accidents or
damages to bridges.
Guardrail Inspection suite is used by maintenance
crews to inventory guardrails throughout the state,
and record/fix any deficiencies.
The nighttime Inspection suite allows crews to collect
roadway assets that may have lost reflectivity and
mark them for repair.
Project Punchlist is used by construction inspection
teams to report any deficiencies in closing projects.
TxDOT Tollway Back Office Project
On November 17, 2020, TxDOT began transition
activities from Conduent’s Vector Back Office System
to the new TxDOT Back Office System. This transition
has required interruptions to customer service activities
including delayed reconciliation of electronic toll
collections (ETC) transactions through the new TxDOT
Back Office System, statement processing, pay by mail
(PBM) billing and escalations of past due transactions.
All delays in the reconciliation of ETC transactions
attributable to the transition have been substantially
resolved. Though TxDOT terminated its remaining
contract with IBM in August 2021, effective November
29, 2021, overall system improvements have been
realized in Fiscal Year 2022, as TxDOT continues to work
with new contracted technology service providers to
optimize results of the back office system.
8 | Popular Annual Financial Report - Fiscal Year 2021
2021 Awards
2021 Transportation Short Course
The 2021 Transportation Short Course was the
95th such meeting in the Texas Department of
Transportation’s history. Both TxDOT and the Texas
A&M Transportation Institute (TTI) are proud of this
long-standing record of collaboration and cooperation.
Over the years, the Short Course has provided a unique
opportunity to exchange important technical information
that improves transportation in Texas.
Big 5 Awards
TxDOT recognized outstanding achievements with the Big
5 Awards during the opening session of the 95th Annual
Transportation Short Course.
Financial Management Initiatives
Below is a summary of the major technology
enhancements the Financial Management Division has
invested in during fiscal 2021.
E-invoicing
FIN is implementing an e-Invoicing
solution to scan and capture invoicing
information into PeopleSoft using
automation and minimizing manual
effort. The solution streamlines the
invoice lifecycle, saving time and
money. The e-Invoicing solution will
provide better visibility into account payables and AP
workflow, improve processing by using automation rather
than the manual steps to ingest, match receipts and
process invoices for payment. In addition, the solution
will reduce payment delays, processing time and penalty
interest payments.
My Wallet
The Financial Management Division
(FIN) has implemented a new payment
card solution, known as My Wallet in
PeopleSoft. This system replaces the
previous web application, the Payment
Card System (PCS), and will be used
by cardholders to submit payment card
transaction documentation to FIN for payment. This
new solution was implemented on January 14, 2022.
My Wallet is a significant improvement from PCS, as
it is part of the familiar PeopleSoft system and helps
to consolidate financial transactions into our financial
system, PeopleSoft. Coding validation, auto-population
of data, more robust reporting, system interfaces and
mobile accessibility are a few of the improvements.
Claims Automated Recovery System (CARS)
The Financial Management Division
(FIN) is implementing a damage
claim solution, known as the Claims
Automated Recovery System (CARS), to
identify, document, and track damage
to department property throughout
the collection process. The solution
will allow the automated (e.g. from Crash Records
Information System) or manual collection of incident
information statewide in one system and reduce or
eliminate many manual processes currently performed.
FIN Forecasting
The Financial Management Division is in the process
of procuring a more capable, modernized, cloud-based
cash forecasting solution with on-going support to
replace a proprietary system of more limited functionality
and at the end of its life cycle. The new system will
replace a mixture of application-based and Excel-based
forecasting, allow for the development of multiple
scenarios, enhance reporting capabilities, automate
manual processes, integrate with data sources,
eliminate the need for a legacy mainframe process, and
have more scalability. Procurement, development, and
implementation are taking place during fiscal year 2022.
E-INVOICING
Popular Annual Financial Report - Fiscal Year 2021 | 9
The Raymond E. Stotzer Jr. Award Rhonda Branecky,
Statewide Programs Director, Support Services Division
Russell H. Perry Award
Dr. C. Michael Walton, Professor Emeritus of Civil
Engineering, University of Texas at Austin
The Dewitt C. Greer Award
John Hudspeth, Director of Transportation Planning and
Development, Dallas District
Gibb Gilchrist Award
Mike Arellano, Deputy District Engineer, Austin District
Luther DeBerry Award
Ugonna Ughanze, Director of Transportation Operations,
Houston District
Extra Mile Awards
The Extra Mile Awards are presented to TxDOT workers
who have helped save a life or prevented a situation
from becoming life-threatening, either while performing
their TxDOT duties or on their own time.
Randal Reid - Facilities Coordinator, Abilene District
Tyler Scott and Derek Wolf - General Transportation
Technicians, Austin District
Professional Financial Awards
The Government Finance Officers Association (GFOA) has
awarded TxDOT with the Certificate of Achievement for
Excellence in Financial Reporting each year, since 2019,
for its Annual Comprehensive Financial Report (ACFR).
In addition, TxDOT has prepared, for the first time, this
Popular Annual Financial Report (PAFR), the highest
standard for the preparation and issuance of state and
local government popular reports and will submit this
document to GFOA for consideration of the Outstanding
Achievement in Popular Annual Financial Reporting
award.
Economic Condition
Due to the pandemic, economic realities in fiscal
2021 presented government entities, including state
transportation departments, with challenges. The
National and Texas’ economy was interrupted in the
spring of 2020 because of a global pandemic, and this
resulted in many citizens that were not serving in critical
functions being asked to shelter in place.
The economy rebounded some in fiscal 2021, leading
to consumers being more optimistic about the economy
than they were in the year 2020. However, consumers
remain cautious. The unemployment rate in Texas has
decreased from 7.7 percent to 5.6 percent. The median
annual household income increased from $74,500 in the
year 2020 to $75,100 in 2021.
Population (Thousands)
2020 2021
Texas 29,395 29,678
Percent Changes 1.2%1.0%
U.S.331,546 332,002
Percent Changes 0.3%0.1%
Total Personal Income (Millions)
2020 2021
Texas 1,610,182 1,708,727
Percent Changes 5.1%6.1%
U.S.19,727,922 21,029,522
Percent Changes 6.3%6.6%
Per Capita Income
2020 2021
Texas 54,777 57,576
Percent Changes 3.9%5.1%
U.S.59,503 63,342
Percent Changes 6.0%6.5%
Nonfarm Employment (Thousands)
2020 2021
Texas 12,267 12,632
Percent Changes (4.3%)3.0%
U.S.142,252 146,372
Percent Changes (5.7%)2.9%
Unemployment Percentage Rate
2020 2021
Texas 7.7% 5.6%
U.S.8.1%5.4%
Employment by Industry
Goods-Producing 2020 2021
Natural Resources and Mining 192 186
Construction 736 729
Manufacturing
Durables 552 543
Nondurables 317 322
Total, Good-Producing 1,797 1,780
Service-Providing 2020 2021
Trade, Transportation, and Utilities
Wholesale Trade 590 601
Retail Trade 1,279 1,320
Transportation and Warehousing 549 585
Utilities 52 51
Information 198 205
Financial Activities
Finance and Insurance 585 589
Real Estate and Rental and Leasing 219 225
Professional and Business Services
Professional, Scientific and Technical 833 866
Management, Administrative and
Support 927 986
Educational and Health Services
Educational Services, Private 208 218
Health Care and Social Assistance 1,489 1,510
Leisure and Hospitality 1,178 1,312
Other Services 398 417
Government
Federal Civilian 215 211
State and Local 1,750 1,756
Total, Service-Providing 10,470 10,852
Total Nonfarm Employment 12,267 12,632
10 | Popular Annual Financial Report - Fiscal Year 2021
Popular Annual Financial Report - Fiscal Year 2021 | 11
Funding Sources
The State Highway Fund, commonly referred to as Fund
6, is TxDOT’s primary funding source. This fund receives
state revenues in the form of taxes and fees. The state
constitution dedicates most of these state taxes and fees
to fund the acquisition of right-of-way, construction, and
maintenance of public roadways. State motor vehicle fuels
tax revenue and vehicle registration fees make up the
greatest share of traditional, constitutionally dedicated
State Highway Fund dollars. TxDOT funds its rail projects,
public transportation, aviation services, and gulf waterway
improvements with non-constitutionally dedicated
revenues and federal funds.
Traditional Funding
State Motor Vehicle Fuels Tax - 20 cents per gallon
total, 25 percent (5 cents) goes to Available School
Fund.
Federal funding - Federal funds account for
approximately one-third of the revenue deposited
into the State Highway Fund. The state General
Appropriations Act (GAA) includes federal funds in
TxDOT’s budget as estimated reimbursements for
payments on projects that meet certain federal
requirements.
Vehicle Registration Fees.
Other, smaller revenue amounts such as lubricant
sales taxes, permit fees for special vehicles, and
interest on certain funds.
Local project participation funds.
Non-traditional Funding
Proposition 1: A portion of existing oil and natural
gas production taxes is divided evenly between the
Economic Stabilization Fund and the State Highway
Fund. This fund may only be used for constructing,
maintaining, and acquiring rights-of-way for public
roadways other than toll roads.
Proposition 7: A portion of the revenue from the
state sales and use tax, and motor vehicle sales
and rental tax is dedicated to the State Highway
Fund. These funds may be used for the construction,
maintenance, and acquisition of right-of-way for
public roadways other than toll roads.
Regional toll revenue and revenue from
Comprehensive Development Arrangements.
State Infrastructure Bank loan repayments and
interest - Texas’ State Infrastructure Bank (SIB) is a
revolving fund that allows local government entities to
borrow money for the costs of certain transportation
projects at favorable terms.
Revenues that are dedicated by the Texas
Constitution to fund public roadway projects.
10 Texas Transportation Funding for Fiscal Years 2020-2021
TxDOT created Figure 5 as a guide to clarify the funding restrictions associated with each of its state funding sources and financing tools.
Figure 5 is useful in discussions related to non-highway state transportation needs such as aviation projects, capital funding for ports, rail,
and public transportation.
Statutorily Authorized Uses of Funding Streams
1. State Highway Fund-Dedicated includes state motor fuel and
lubricant taxes and motor vehicle registration fees. It also
includes federal reimbursements that are not reflected in the
above grid as a small amount of them may at times be used for
other modes of transportation.
2. Proposition 12 bond proceeds may be used to provide funding
for highway improvement projects with no distinction between
tolled and non-tolled highways.
3. Texas Mobility Fund revenues in excess of funds required to pay
Texas Mobility Fund debt service are prohibited to pay for toll
expenditures as part of 2015 legislation.
4. The Texas Constitution allows for the use Texas Mobility Fund
bond proceeds to develop and construct state highways, “to
provide participation by the state in the payment of a portion
of the costs of constructing and providing publicly owned toll
roads and other public transportation projects.” “Other public
transportation projects” is undefined and therefore may be
available for more types of transportation projects than what
are listed here.
5. “State Highway Fund—Non-Dedicated” includes limited revenue
sources. An annual transfer of approximately $150 million goes
to the Texas Emissions Reduction Program (TERP) Fund.
6. Regional Subaccount funds may only be used for
transportation, highway, and air quality projects as defined by
Section 228.001, Transportation Code, in the region where the
project from which those funds were derived is located. The
revenues are deposited in the State Highway Fund but are not
dedicated by the Texas Constitution.
Non-Tolled Highways Tolled Highways Rail − Passenger Rail − Freight Transit Aviation Ports
Proposition 1 Funds i
Proposition 7 Funds i
State Highway Fund − Dedicated 1 i i
Proposition 14 Bonds i i
Proposition 12 Bonds 2 i i
Texas Mobility Fund − Revenue 3 i i i
Texas Mobility Fund (TMF) −Bond Proceeds 4 i i i i
State Highway Fund −Non-Dedicated 5 i i i i i i i
Regional Subaccounts 6 i i i i i i i
FU
N
D
I
N
G
S
O
U
R
C
E
Texas Mobility Fund, Proposition 14, and Proposition 12 bond programs are unavailable or suspended.
TEXAS TRANSPORTATION FUNDING: FISCAL YEARS 2022-2023 7
www.txdot.gov • Government Affairs Division
FUNDING SOURCE
PROJECT TYPE
Highways
(Non − Tolled)
Highways
(Tolled)
Rail
(Passenger)
Rail
(Freight)
Transit
(Public)
Aviation
(Public)
Ports
(Outside Gates)
Ports
(Inside Gates)
Proposition 1 Funds i
Proposition 7 Funds i
State Highway Fund
(Dedicated)1 i i
Texas Mobility Fund2 i i i i i
State Highway Fund
(Non-Dedicated)3 i i i i i i i
General Revenue4 i i i i i i i i
TxDOT created the following chart to assist with identifying some of the limitations and available uses
of its multiple funding sources.
Non-constitutionally dedicated State Highway Fund revenues are fully committed and unavailable for new purposes without impacting the current uses noted above.
STATUTORILY AUTHORIZED USES OF FUNDING STREAMS
Figure 5
1. State Highway Fund (Dedicated) includes traditional
sources of funding dedicated by the Texas Constitution and consists of state motor fuel and lubricant taxes, motor vehicle registration fees, and interest earned
on dedicated deposits. It also includes federal
reimbursements that are not reflected in the above grid, as a small amount of these federal funds may at times be used for other modes of transportation.
2. The Texas Constitution allows for the use of Texas
Mobility Fund revenues and bond proceeds to develop
and construct state highways and other public transportation projects.
3. State Highway Fund (Non-Dedicated) includes very
limited revenue sources that are designated by statute but not the Texas Constitution. These limited revenue sources are further constrained by an annual, statutorily
required transfer of approximately $150 million, which
backfills the Texas Mobility Fund’s loss of Certificate of Title Fees. Many multimodal transportation services have received level funding for decades because of the
limited availability of non-constitutionally dedicated
funds.
4. State general revenue can be used on all forms of multimodal transportation in order to pay for exceptional items or legislative directives where other
revenues are unavailable due to restrictions or have
already been fully obligated.
Infrastructure Investment and
Jobs Act (IIJA)
The $1.2 trillion Infrastructure Investment and Jobs Act
was signed into law by President Biden on Nov. 15, 2021
as Public Law 117-58 to improve the country’s roads,
bridges, pipes, ports, and broadband internet connections.
Based on formula funding, the entire state of Texas
expects to receive $35 billion. TxDOT’s portion of this
funding is approximately $28.5 billion. The IIJA will provide
TxDOT with federal funding over the next five years.
Designates I-14 from Texas to Georgia as a High Priority
Corridor as Future Interstate
Per amendment offered by Senator Cruz and Senator
Warnock (D-GA).
Two New Funding Categories (Apportionments within the
Highway Program)
1. Carbon Reduction Program:
$6.42 billion over 5 years distributed via formula for
all states (Texas: $642M over 5 years).
Requires states to develop a carbon reduction
strategy within two years.
Makes the reduction of transportation emissions an
eligible use under all apportioned funding categories
to states.
2. Promoting Resilient Operations for Transformative,
Efficient, and Cost-saving Transportation (PROTECT)
Program:
$7.3 billion over 5 years distributed via formula to all
states (Texas: $792M over 5 years).
Funds apportioned to a state for the PROTECT
program must be obligated for resilience
improvements, community resilience and evacuation
routes, and at-risk coastal infrastructure.
Of note, there is also $1.4 billion over five years
for competitive discretionary grants for the
PROTECT Program.
Nationwide Supplemental Bridge Funding
$27.5 billion over 5 years for a bridge replacement,
rehabilitation, preservation, protection, and construction
program, to be distributed annually in equal amounts.
Formula distribution for this program is more
favorable to Texas than prior formulas.
Largest New Discretionary Grant Programs: Five Year
Nationwide Totals
$9.235 billion for Bridge Investment Program grants.
$7.5 billion for RAISE grants.
$5 billion for National Infrastructure Project
Assistance (Megaprojects) grants.
Allows for single-year or multi-year grant
agreements for large surface transportation
projects in various modes.
Estimated Total Funds for Texas Over Five Years (FY22-FY26)
Highway Contract Authority $26.893 billion
General Fund Advanced Appropriations $945 million*
Rural Transit $450 million
General Aviation Airports $173 million
Ferry Boats and Terminals $35 million
Total $28.5 billion
Annual FY Average $5.7 billion
* EV Charging Stations: $407.8 million;
Bridge Replacement and Rehabilitation: $537.2 million
Source: Government Affairs Division,
Federal Affairs Section
12 | Popular Annual Financial Report - Fiscal Year 2021
Estimated TxDOT funding through IIJA (FY22-FY26)
Popular Annual Financial Report - Fiscal Year 2021 | 13
Financial Summary: Management’s Discussion
and Analysis
TxDOT’s Reporting Entity
TxDOT is an agency of the state of Texas and is charged
with developing and maintaining a statewide multimodal
transportation network and other transportation related
duties. The Texas Transportation Commission (the
Commission), the governing body of TxDOT, has the
authority to commit TxDOT to various legal agreements.
The financial activities of TxDOT, which consist of both
governmental and proprietary activities, are reported
under the transportation function in the state of Texas
Annual Comprehensive Financial Report (ACFR).
The Commission is authorized by Transportation Code
Chapter 431 to create Texas transportation corporations
to perform functions normally undertaken by TxDOT. As of
fiscal 2021, two transportation corporations, the Texas
Private Activity Bond Surface Transportation Corporation
(TxPABST) and the Grand Parkway Transportation
Corporation (GPTC), are reported as blended component
units because TxDOT exercises sufficient authority over the
assets, operations and management of such entities to
warrant their inclusion. Even though Texas transportation
corporations are a part of the TxDOT reporting entity, the
state is not liable for debts of these corporations, nor
entitled to the assets of these corporations.
What is included in TxDOT’s Annual
Comprehensive Financial Report (ACFR)?
Each year, in addition to this popular version of the
annual report, TxDOT produces an Annual Comprehensive
Financial Report (ACFR). The ACFR is prepared using a
reporting combination of both government-wide financial
statements and fund financial statements. These
financial statements consist of three major components:
Government-wide financial statements include the
Statement of Net Position and the Statement of
Activities which provide a broad, long-term overview of
TxDOT’s finances.
Fund financial statements include the balance sheet
and statement of revenue, expenditures, and net
changes in fund balances. They provide a greater level
of detail of revenues and expenditures and focus on
how well TxDOT has performed in the short term in
the most significant funds.
Notes to the basic financial statements.
Financial data contained in this report is presented in
conformity with Generally Accepted Accounting Principles
(GAAP). TxDOT’s government funds use the modified
accrual basis of accounting.
What is the Management’s Discussion and
Analysis (MD&A)?
In the MD&A section of TxDOT annual report,
management discusses numerous aspects of the
organization, both past and present. Among other
details, the MD&A provides an overview of the previous
year of operations and how TxDOT fared in that time
period. Management also touches on the upcoming year,
outlining future goals and approaches to new projects.
Financial Highlights
TxDOT was awarded a total of $997.2 million of
COVID-19 federal funds within the 2021 fiscal year.
This is the cumulation of relief funding received as a
result of the Congress’ response to the pandemic.
TxDOT received a total of $2.5 billion in Proposition
7 funds for state sales and use taxes during fiscal
2021. In July 2021, the department also received
$237.7 million of additional Proposition 7 funds for
the state motor vehicle sales and rental tax revenue.
The largest revenue source earned in 2021 was from
taxes with a total of $7.1 billion. This was followed by
operating grants and contributions with $4.4 billion.
In fiscal 2021, operating grants and contributions
decreased by $1.5 billion compared to fiscal 2020.
The primary reason for the decrease was the
application of Implementation Guide 2019-1. After
implementation in fiscal 2021, a lower amount of
federal revenue was recognized in fiscal 2021 due to
eligibility requirements not being met.
14 | Popular Annual Financial Report - Fiscal Year 2021
Statement of Net Position
The statement of net position presents all of TxDOT’s
assets, deferred outflows of resources, liabilities,
and deferred inflows of resources, with the difference
reported as the net position.
TxDOT’s fiscal year runs from September 1st through
August 31st. Over time, increases or decreases in
TxDOT’s net position may be an indication of whether the
financial situation of TxDOT is improving or deteriorating.
TxDOT’s statement of net position for fiscal years ending
August 31, 2020-2021 is shown in the chart below.
Statement of Net Position (Thousands)
Governmental Activities Business-type Activities Total
2020 2021 2020 2021 2020 2021
Assets ($)($)($)($)($)($)
Assets Other Than
Capital Assets 12,612,479 12,622,515 5,409,569 5,099,660 18,022,048 17,722,175
Capital Assets 119,334,168 127,452,466 3,046,076 3,071,895 122,380,244 130,524,361
Total Assets 131,946,647 140,074,981 8,455,645 8,171,555 140,402,292 148,246,536
Deferred Outflows of
Resources 1,418,063 1,592,425 210,152 202,429 1,628,215 1,794,854
Liabilities
Current Liabilities 3,668,103 3,610,904 293,090 217,251 3,961,193 3,828,155
Non-current Liabilities 19,824,904 20,177,480 8,069,279 8,036,793 27,894,183 28,214,273
Total Liabilities 23,493,007 23,788,384 8,362,369 8,254,044 31,855,376 32,042,428
Deferred Inflows of
Resources 12,653,604 12,871,239 27,852 26,460 12,681,456 12,897,699
Net Position
Net Investment in Capital
Assets 92,952,167 102,426,873 718,364 752,563 93,670,531 103,179,436
Restricted 8,298,396 8,642,379 405,876 430,666 8,704,272 9,073,045
Unrestricted (4,032,464)(6,061,469)(848,664)(1,089,749)(4,881,128)(7,151,218)
Total Net Position 97,218,099 105,007,783 275,576 93,480 97,493,675 105,101,263
The change in net position of governmental activities
was $7.9 billion compared to $7.7 billion in fiscal 2020.
$11.5 billion of operating grants and contributions and
taxes contributed to 89.7 percent of total revenues of
$12.8 billion.
As at the end of the 2021 fiscal year TxDOT had $130.5
billion in net capital assets, an $8.1 billion, or 6.7
percent increase over fiscal 2020.
Popular Annual Financial Report - Fiscal Year 2021 | 15
TxDOT’s overall net position increased 7.8 percent
or $7.6 billion from the prior fiscal year. The three
components of net position are:
Net Investment in Capital Assets
The most significant portion of net position (97.5 percent
or $103.2 billion) is invested in capital assets. Capital
assets are long-lived in nature and cannot be used to
liquidate liabilities. TxDOT’s investment in capital assets
is reported net of related debt.
Restricted Net Position
This portion of net position (8.6 percent or $9.1 billion)
is restricted, representing funds that are limited to
construction activities, payment of debt, or specific
programs by law.
Unrestricted Net Position
The remaining portion of net position is unrestricted,
representing resources not required to be reported in
the other two components of net position. TxDOT had a
deficit unrestricted net position balance of $7.2 billion
in fiscal 2021 since the combined balance in the Net
Investment in Capital Assets and Restricted components
of net position exceeded the total net position.
A two-year representation of TxDOT’s net position
balances is presented below.
TxDOT Total Net Position (Thousands)
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Net Investment inCapital Assets Restricted Unrestricted Total Net Position
TxDOT Total Net Position (Amounts in Thousands)
2020 2021
Changes in Net Position
The statement of activities shows how TxDOT’s net
position changed during the year reported, and shows
total revenues earned and expenses incurred. When
revenues exceed expenses, TxDOT’s net position
increases. If expenses were to exceed revenues, net
position would decrease.
In 2021, TxDOT’s revenues exceeded expenses by $7.7
billion.
Changes in Net Position (Thousands)
Governmental Activities Business-type Activities Total
2020 2021 2020 2021 2020 2021
Revenue
Program Revenues:($)($)($)($)($)($)
Charge for Services 1,141,243 1,126,044 403,001 377,117 1,544,244 1,503,161
Operating Grants and
Contributions 5,900,935 4,421,479 46,998 9,364 5,947,933 4,430,843
Capital Grants and
Contributions 36,284 55,201 0 0 36,284 55,201
Total Program Revenues 7,078,462 5,602,724 449,999 386,481 7,528,461 5,989,205
General Revenues:
Appropriations 17,187 457 0 0 17,187 457
Taxes 6,011,483 7,067,231 0 0 6,011,483 7,067,231
Unrestricted Investment
Earnings 140,906 86,437 0 0 140,906 86,437
Settlement of Claims 34,147 43,473 0 18 34,147 43,491
Gain on Sale of Capital
Assets 18,514 0 0 0 18,514 0
Other General Revenues (325)2,240 0 0 (325)2,240
Total General Revenues 6,221,912 7,199,838 0 18 6,221,912 7,199,856
Total Revenues 13,300,374 12,802,562 449,999 386,499 13,750,373 13,189,061
Expenses
Transportation 6,980,791 6,463,062 593,048 607,471 7,573,839 7,070,533
Total Expenses 6,980,791 6,463,062 593,048 607,471 7,573,839 7,070,533
Excess (Deficiency) Before
Special
Items and Transfers 6,319,583 6,339,500 (143,049)(220,972)6,176,534 6,118,528
Transfers - Internal Activities (29,457)(38,876)0 0 0 0
Transfers - Other State
Agencies 1,438,006 1,583,581 29,457 38,876 1,438,006 1,583,581
Change in Net Position 7,728,132 7,884,205 (113,592)(182,096)7,614,540 7,702,109
Net Position, Beginning
Balance 89,489,967 97,218,099 389,168 275,576 89,879,135 97,493,675
Change in Accounting
Principle*0 (94,521)0 0 0 (94,521)
Net Position, September
1, 2020, as Restated 89,489,967 97,123,578 389,168 275,576 89,879,135 97,399,154
Net Position, Ending
Balance 97,218,099 105,007,783 275,576 93,480 97,493,675 105,101,263
Total business-type revenues decreased by $63.5 million
or 14.1 percent from $450.0 million in fiscal 2020 to
$386.5 million in fiscal 2021. This was primarily due to
a reduction in toll revenues from processing and billing
delays relating to Pay by Mail toll transactions occurring
after conversion to TxDOT’s new toll back office system
in fiscal 2021.
16 | Popular Annual Financial Report - Fiscal Year 2021
Popular Annual Financial Report - Fiscal Year 2021 | 17
Government-wide Revenue and Expense Summary
Revenues
TxDOT earned program revenues of $6.0 billion and
general revenues of $7.2 billion, for total revenues of
$13.2 billion. In 2021, the largest revenue source in
TxDOT’s Governmental Activities was taxes, representing
55.3 percent of all revenue collected. In Business-
Type activities, Charges for Services was the largest
component of revenue, representing 97.6 percent of
all revenues collected. The following charts detail the
revenue breakdown by component for both Governmental
and Business-Type activities.
Expenses
At the government-wide level, all expenses are
presented as transportation expenses for a total of
$13.4 billion. The charts that follow present a year over
year comparison of TxDOT’s government-wide revenues
and expenses, governmental fund expenditures, and
proprietary fund expenses.
$450
$0
$450
$593
$386
$0
$386
$607
Program Revenues General Revenues Total Program &General Revenues Expenses
)
Fiscal 2020 Fiscal 2021
$7,078 $6,222
$13,300
$6,981
$5,603
$7,200
$12,803
$6,463
Program Revenues General Revenues Total Program &General Revenues Expenses
Fiscal 2020 Fiscal 2021
Charges for Services97.6%
Operating Grants and Contributions 2.4%
Revenues by Source: Business-Type ActivitiesFor the Fiscal Year Ended August 31, 2021
Charges for
Services8.8%
Operating Grants and Contributions34.5%
Capital Grants and Contributions0.4%Appropriations
0.0%
Taxes55.3%
Other General Revenues
1.0%
Revenues bySource: Governmental ActivitiesFor the Fiscal Year Ended
Revenues by Source: Governmental Activities
For the Fiscal Year Ended August 31, 2021
Revenues by Source: Business-Type Activities
For the Fiscal Year Ended August 31, 2021
Expenses and Revenues: Governmental Activities
For the Fiscal Years August 31, 2021 and 2020 (Millions)
Expenses and Revenues: Business Activities
For the Fiscal Years August 31, 2021 and 2020 (Millions)
18 | Popular Annual Financial Report - Fiscal Year 2021
Governmental Fund Highlights
Governmental Funds
The focus of TxDOT’s governmental funds financial
statements is to provide information on how money
flows into and out of the funds, and amounts remaining
at year-end for future spending. TxDOT has two major
governmental funds: the State Highway Fund and the
Texas Mobility Fund. TxDOT’s governmental funds
reported a combined ending fund balance of $8.8
billion on Aug. 31, 2021, most of which is allocated to
restricted capital projects.
State Highway Fund - The State Highway Fund is
TxDOT’s main operating fund. Overall, the fund
balance for the State Highway Fund on Aug. 31, 2021
was $8.0 billion. Total revenues increased by $26.7
million, or 0.2 percent, to $12.2 billion in fiscal 2021.
97.6 percent of the total revenue included $6.7 billion
of taxes and $5.2 billion of federal revenue. $9.0
million capital outlay expenditures contributed to
71.2 percent of overall SHF’s expenditures in fiscal
2021. Changes in fund balance was $575.3 million in
fiscal 2021, an increase of $485.2 million from fiscal
2020. Fund balance increased due to a tax revenue
increase of $197.6 million during fiscal 2021, after
a rebound in motor fuels tax collections from the
COVID-19 pandemic. In addition, transportation
expenditures decreased by $724.0 million due to
a budget reduction for maintenance contracts. The
reduction was offset with an increase in budget for
construction contracts, and capital outlay increased
by $318.3 million in fiscal 2021 as a result.
Texas Mobility Fund - The Texas Mobility Fund
operates as a revolving fund to provide a method of
financing construction, reconstruction, acquisition and
expansion of state highways and other transportation
projects. The fund balance for the Texas Mobility Fund
on Aug. 31, 2021, was $389.2 million, an increase
of $63.2 million or 21.3 percent, from $321.0 million
on Aug. 31, 2020. Change in fund balance was $68.2
million in fiscal 2021 compared to negative $89.6
million in fiscal 2020, a 176.1 percent increase over
the fiscal year. Due to the decrease in construction
Taxes52%
Federal Revenues41%
Licenses, Fees and Permits4%
Interest & Investment
Income1%
Sales of Goods and Services2%
Governmental Fund Revenue Percentages
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2020 2021
TxDOT Governmental Fund Revenues by Source
(Amounts in Thousands)
Legislative Appropriations Taxes
Federal Revenues Licenses, Fees and Permits
Interest & Investment Income Net Increase (Decrease) Fair Value
Land Income Settlement of Claims
Sales of Goods and Services Other Revenues
Governmental Fund Revenues by Source (Thousands)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
2020 2021
Governmental Fund Expenditures by Use (Amounts in Thousands)
Transportation Capital Outlay Debt Service Expenditures
Governmental Fund Expenditures by Use (Thousands)
Popular Annual Financial Report - Fiscal Year 2021 | 19
project expenditures receiving mobility fund dollars,
capital outlay expenditures decreased by $55.6
million or 33.2 percent. A total of $522.9 million
of revenues were collected for the fund. The major
revenue sources were licenses, fees, and permits,
which accounted for $499.7 million or 95.6 percent of
total fund’s revenue.
Proprietary Funds
When TxDOT charges customers for services it provides,
these activities are generally reported in proprietary
funds. Services provided to outside (non-governmental)
customers are reported in enterprise funds, a
component of proprietary funds, and are accounted
for using the economic resources measurement focus
and the accrual basis of accounting. TxDOT has three
major proprietary funds, all of which are enterprise
funds: Central Texas Turnpike System, Grand Parkway
Transportation Corporation and SH 249 System. TxDOT’s
proprietary funds reported a combined ending net
position of $93.5 million on Aug. 31, 2021. This balance
includes the net investment in capital assets of $752.6
million, restricted net position of $430.1 million and a
deficit unrestricted net position balance of $1.1 billion.
Central Texas Turnpike System - The net position
of CTTS was $273.4 million as of Aug. 31, 2021, a
decrease of $101.0 million from fiscal 2020. CTTS’
operating revenues decreased by $37.4 million or
17.0 percent over fiscal 2020. The decrease largely
was due to billing issues related to implementation
of the new back office system. The total expense for
CTTS in fiscal 2021 was $292.6 million, compared
to $259.1 million in fiscal 2020. Depreciation and
amortization combined with interest expenses
contributed to $172.2 million, which was 58.9
percent of the total expense of CTTS.
Grand Parkway Transportation Corporation - GPTC
reported a deficit net position of $420.9 million in
fiscal 2021, a decrease in net position of $110.4
million over fiscal 2020. GPTC’s operating revenues
in fiscal 2021 increased by $5.7 million, or 3.1
percent over fiscal 2020. The increase was due to an
increase in toll transactions. In fiscal 2021, GPTC’s
total expense was $302.2 million, which decreased
by $19.6 million or 6.1 percent over fiscal 2020. The
largest expense in fiscal 2021 was $199.2 million of
interest payments.
SH 249 System - SH 249 System started to receive toll
revenue as the tollway opened to traffic in December
2020. During fiscal 2021, SH 249 System generated
$5.8 million in toll revenue, net of allowance for
doubtful accounts. The total increase in net position of
$29.3 million is mainly due to a $36.1 million transfer
of capital assets from Governmental Activities and net
non-operating expenses of $12.3 million.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
TxDOT Governmental Fund Balances, All Funds
(Amounts in Thousands)
2020 2021
TxDOT Governmental Fund Balances, All Funds (Thousands)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2020 2021
Proprietary Fund Expenses (Amounts in
Thousands)
Operating Expenses Interest Bond Issuance Expense Other Financing Fees
Proprietary Fund Expenses (Thousands)
$(1,200,000)
$(1,000,000)
$(800,000)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
Net Investment inCapital Assets Restricted Unrestricted Total Net Position
TxDOT Proprietary Fund Net Position, All Funds
(Amounts in Thousands)
2020 2021
Proprietary Fund Net Position, All Funds (Thousands)
The deficit unrestricted net position balance in the proprietary funds
is due to the accumulated accretion on Capital Appreciation Bonds.
The annual accretion increases the liability balance of the outstanding
bonds with no corresponding asset increase in the unrestricted net
position category.
20 | Popular Annual Financial Report - Fiscal Year 2021
Short and Long-Term Assets
All monies in funds established in the Texas Comptroller
of Public Accounts (Comptroller) Treasury Operations
Division (Treasury) are pooled with other state funds
and invested under the direction of the Comptroller of
Public Accounts Treasury Operations Division (Treasury).
Governmental fund deposits in the state treasury totaled
$9.2 billion at Aug. 31, 2021.
As of Aug. 31, 2021, the measurements of TxDOT’s
investments by major type are summarized below:
Capital Assets
TxDOT’s capital assets are roads, bridges, buildings,
land, equipment, and intangible capital assets. As of the
end of the 2021 fiscal year, TxDOT had $130.5 billion
in net capital assets, indicating an $8.1 billion (6.7
percent) increase over fiscal 2020.
This increase was due to the reclassification and
purchase of $6.7 billion in depreciable infrastructure,
$2.3 billion of construction in progress, and $1.2 billion
of land and land improvements in fiscal 2021.
Capital Assets - Net of Depreciation and Amortization - August 31, 2020 and 2021 (Thousands)
Governmental Activities Business-type Activities Total
2020 2021 2020 2021 2020 2021
Land and Land
Improvements $15,666,188 $16,840,633 $725,374 $726,103 $16,391,562 $17,566,736
Infrastructure - Depreciable 83,199,960 87,784,024 1,795,703 1,867,964 84,995,663 89,651,988
Construction in Progress 19,644,639 21,965,776 502,373 402,147 20,147,012 22,367,923
Buildings and Building
Improvements 272,923 304,222 3,160 2,798 276,083 307,020
Furniture and Equipment 69,307 67,513 69,307 67,513
Vehicles, Boats and Aircraft 394,043 386,475 394,043 386,475
Other Capital Assets 6,055 5,279 6,055 5,279
Land Use Rights - Permanent 67,648 87,105 19,466 19,466 87,114 106,571
Land Use Rights - Term 436 602 436 602
Computer Software 12,969 10,837 53,417 12,969 64,254
Total Capital Assets $119,334,168 $127,452,466 $3,046,076 $3,071,895 $122,380,244 $130,524,361
Money Market Mutual Funds$80,198
U.S. Government Agency Obligations$19,965
Government Investment Pools$48,776
Investments -Governmental Activities
(Amounts in Thousands)Investments - Governmental Activities (Thousands)
Money Market Mutual Funds$160,906
U.S. Treasuries$102,365
U.S. Government Agency Obligations$284,386
Government Investment Pools$1,125,043
Repurchase Agreements $223,887
Investments -Business-Type Activities (Amounts in
Thousands)Investments - Business-Type Activities (Thousands)
Popular Annual Financial Report - Fiscal Year 2021 | 21
Long-Term Debt
Outstanding Bonds
TxDOT as a whole had a little over $21.2 billion in
outstanding bonded debt at the end of fiscal 2021.
This is made up of $10.0 billion in general obligation
(GO) bonds, and $11.2 billion in revenue bonds. This
figure has decreased by $606.0 million compared to
fiscal 2020.
Outstanding Bonded Debt - August 31, 2020 and 2021 (Thousands)
Governmental Activities Business-type Activities
2020 2021 2020 2021
General Obligation Bonds Payable $10,353,570 $10,048,173 $$
Revenue Bonds Payable 3,941,482 3,649,875 7,513,946 7,504,914
Total Bonds Payable $14,295,052 $13,698,048 $7,513,946 $7,504,914
Note Issuance
The Commission entered into an agreement with the
Texas Public Finance Authority (TPFA) on Mar. 11, 2021.
TPFA issued Taxable Series 2021 Lease Revenue Bonds
with an aggregate principal amount of $325.7 million for
the purpose of financing certain costs of the Campus
Consolidation Project. The agreement obligates the
Commission to make rent payments to TPFA in amounts
sufficient to pay, among other things, the principal of,
premium and interest on the TPFA 2021 bonds. The
Texas Legislature has appropriated moneys from the
State Highway Fund to be used by the Commission to
make payments to TPFA under the agreement for TPFA’s
debt service payments due on their Series 2021 bonds
during fiscal year 2021. The bond will be paid in full in
20 years, or 2041.
Credit Ratings
Credit ratings are used by bond investors to determine an
organization’s financial stability and, subsequently, the
safety and security of the debt sold by the organization.
Strong ratings help to expand the market by attracting
additional bond buyers. The department currently has
outstanding bonds credit ratings with Fitch, Moody’s,
Standard & Poor’s, and Kroll Bond Rating Agency.
Long-Term Credit Ratings as of August 31, 2021
Governmental Activities Fitch Moody’s Standard & Poor’s Kroll
General Obligation Bonds
TMF 2009-A, 2014, 2014-A,B, 2015-A, B, 2017-A,B AAA Aaa AAA AAA
TMF 2020 AAA Aaa n/a AAA
HIGO 2010-A, 2012-A, 2014, 2016, 2016-A, 2019 AAA Aaa AAA AAA
HIGO 2020 AAA Aaa n/a AAA
Revenue Bonds
SHF 2008, 2010, 2014-A, B2, 2015, 2016-A,B, 2020 n/a Aaa AAA n/a
Business-Type Fitch Moody’s Standard & Poor’s Kroll
Revenue Bonds
CTTS 2002-A, 2012-A, 2015-B, 2020-A,B,C A A3 A n/a
CTTS 2015-C BBB+Baa1 A-n/a
GPTC 2013-A A+n/a BBB n/a
GPTC 2013-B,E, 2018-A,B AA n/a AA+n/a
GPTC 2016 n/a n/a AA+n/a
GPTC 2020-A,C A+A2 n/a n/a
GPTC 2020-B AA Aa1 n/a n/a
SH 249 2019-A,B n/a Baa3 n/a n/a
22 | Popular Annual Financial Report - Fiscal Year 2021
Future Financial Planning
The Unified Transportation Program (UTP) is
TxDOT’s 10-year plan that guides the development of
transportation work across the state. Organized into 12
funding categories, with each one addressing a specific
type of work, the UTP authorizes the distribution of
construction dollars expected to be available over the
next 10 years. Within the UTP framework, TxDOT works
with elected officials, local planning organizations, and
the public to select and fund the state’s highest priority
transportation projects. In addition to highway projects,
the UTP addresses public transportation, maritime,
aviation, rail and freight, and international trade. The
Texas Transportation Commission approves the UTP
annually in accordance with Texas state law, and TxDOT
publishes the approved UTP each year.
The UTP is part of a comprehensive planning and
programming process flowing from TxDOT’s agency
mission to project-level implementation.
Establish Strategic Goals, Performance Measures, and Targets
STEP 1
Release the UTP Planning Targets
STEP 4
Develop the Planning Cash Forecast
STEP 2 Match Priority Projects to Allocated UTP Funding
STEP 6
Select Projects Competing for Statewide Funding Categories
STEP 7
Produce UTP Document
Conduct Statewide
Public involvement
STEP 9
Prioritize Potential Transportation Projects Locally
STEP 5
Determine the UTP Funding Distribution by Category
STEP 3
Present UTP to the Texas Transportation Commissionfor Adoption
STEP 10
STEP 8
PROMOTE
SAFETY
SAFETY:
FATALITIES/YR
SAFETY:
FATALITY RATE
PRESERVATION:
PAVEMENT
CONDITION
PRESERVATION:
STATEWIDE
BRIDGE
CONDITION
SCORE
PRESERVE OUR ASSETS
CONGESTION:URBAN
CONGESTION
INDEXCONNECTIVITY:
RURAL
RELIABILITY INDEX
OPTIMIZE SYSTEM PERFORMANCE
Reduce crashes and fatalities through
targeted infrastructure improvements, technology applications, and education
Maintain and preserve system/asset
conditions through targeted infrastructure rehabilitation, restoration, and replacement
Enhance mobility, reliability,
connectivity, and mitigate congestion through targeted infrastructure and operational improvements
2,280
0.70
90%
90%
1.20
1.12
PERFORMANCE MEASURESSTRATEGIC PLAN GOAL PERFORMANCEVISION 2030 TARGET
16
2021 UNIFIED TRANSPORTATION PROGRAM
DEVELOPING THE UTP 16
Step 1:
Establish Strategic Goals, Performance
Measures, and Targets
Through the Statewide Long-Range Transportation Plan (SLRTP), which
covers a minimum 24-year planning horizon, TxDOT sets the long-term
transportation priorities for the state. The SLRTP defines three statewide
strategic goals for the transportation system: to promote highway safety,
preserve existing infrastructure assets, and optimize system performance
for drivers in urban and rural areas. The SLRTP also establishes six
performance measures and targets to achieve these goals (see Fig. 4). As
the foundation of the UTP development process, these goals, performance
measures, and targets drive all subsequent funding distribution and project
selection in the UTP.
Step 2:
Develop the Planning
Cash Forecast
Another foundational element of the UTP is the planning cash forecast,
which determines how much money is available for the 10-year UTP
planning period. Each year, TxDOT’s Financial Management Division
estimates the revenue expected to be available to TxDOT for transportation
project construction over the next 10 years. These revenues come primarily
from a mix of state funds appropriated by the Texas Legislature (including
state motor fuels taxes, sales taxes, and vehicle registration fees) and
federal highway funds appropriated by Congress. While the forecast
UTP DEVELOPMENT STEPS
UTP Development Timeline – Annual Cycle *
Performance Measures and Targets
for the Transportation System
*The timeline above is subject to change. For the latest information about public involvement dates, see the UTP Public Involvement page on TxDOT.gov .
To maximize the limited time of an annual cycle, many UTP development steps are conducted concurrently and may overlap on the timeline.
Targets are based on the draft Statewide Long-Range Transportation Plan 2050, slated for adoption in 2020.
Back to Table of Contents
Establish Strategic Goals, Performance Measures, and Targets
STEP 1
Release the UTP Planning Targets
STEP 4
Develop the Planning Cash Forecast
STEP 2 Match Priority Projects to Allocated UTP Funding
STEP 6
Select Projects Competing for Statewide Funding Categories
STEP 7
Produce UTP Document
Conduct Statewide Public involvement
STEP 9
Prioritize Potential Transportation Projects Locally
STEP 5
Determine the UTP Funding Distribution by Category
STEP 3
Present UTP to the Texas Transportation Commissionfor Adoption
STEP 10
STEP 8
PROMOTE SAFETY
SAFETY:
FATALITIES/YR
SAFETY:
FATALITY RATE
PRESERVATION:
PAVEMENT
CONDITION
PRESERVATION:
STATEWIDE
BRIDGE
CONDITION
SCORE
PRESERVE OUR ASSETS
CONGESTION:
URBAN
CONGESTION
INDEX
CONNECTIVITY:
RURAL
RELIABILITY INDEX
OPTIMIZE SYSTEM PERFORMANCE
Reduce crashes and fatalities through targeted infrastructure improvements, technology applications, and education
Maintain and preserve
system/asset
conditions through
targeted infrastructure
rehabilitation, restoration, and replacement
Enhance mobility, reliability, connectivity, and mitigate congestion through targeted infrastructure and operational improvements
2,280
0.70
90%
90%
1.20
1.12
PERFORMANCE MEASURESSTRATEGIC PLAN GOAL PERFORMANCEVISION 2030 TARGET
16
2021 UNIFIED TRANSPORTATION PROGRAM
DEVELOPING THE UTP 16
Step 1:
Establish Strategic Goals, Performance
Measures, and Targets
Through the Statewide Long-Range Transportation Plan (SLRTP), which
covers a minimum 24-year planning horizon, TxDOT sets the long-term
transportation priorities for the state. The SLRTP defines three statewide
strategic goals for the transportation system: to promote highway safety,
preserve existing infrastructure assets, and optimize system performance
for drivers in urban and rural areas. The SLRTP also establishes six
performance measures and targets to achieve these goals (see Fig. 4). As
the foundation of the UTP development process, these goals, performance
measures, and targets drive all subsequent funding distribution and project
selection in the UTP.
Step 2:
Develop the Planning
Cash Forecast
Another foundational element of the UTP is the planning cash forecast,
which determines how much money is available for the 10-year UTP
planning period. Each year, TxDOT’s Financial Management Division
estimates the revenue expected to be available to TxDOT for transportation
project construction over the next 10 years. These revenues come primarily
from a mix of state funds appropriated by the Texas Legislature (including
state motor fuels taxes, sales taxes, and vehicle registration fees) and
federal highway funds appropriated by Congress. While the forecast
UTP DEVELOPMENT STEPS
UTP Development Timeline – Annual Cycle *
Performance Measures and Targets
for the Transportation System
*The timeline above is subject to change. For the latest information about public involvement dates, see the UTP Public Involvement page on TxDOT.gov .
To maximize the limited time of an annual cycle, many UTP development steps are conducted concurrently and may overlap on the timeline.
Targets are based on the draft Statewide Long-Range Transportation Plan 2050, slated for adoption in 2020.
Back to Table of Contents
$13,926,300,000
$9,762,261,100
$6,120,171,705
$9,762,261,100
$2,228,040,000
$3,586,560,000
$3,203,380,000
$16,040,000,000
$4,655,270,000
$3,731,750,000
1 - PREVENTIVE MAINTENANCE AND REHABILITATION
2 - METROPOLITAN AND URBAN AREA CORRIDOR PROJECTS
3 - NON-TRADITIONALLY FUNDED TRANSPORTATION PROJECTS
4 - STATEWIDE CONNECTIVITY CORRIDOR PROJECTS
5 - CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT
6 - STRUCTURES REPLACEMENT AND REHABILITATION
7 - METROPOLITAN MOBILITY AND REHABILITATION
8 - SAFETY
9 - TRANSPORTATION ALTERNATIVES
10 - SUPPLEMENTAL TRANSPORTATION PROJECTS
11 - DISTRICT DISCRETIONARY
12 - STRATEGIC PRIORITY
$910,500,000
$725,469,530
TOTAL UTP FUNDING CATEGORIES 1-12 $74,651,963,435
18
2021 UNIFIED TRANSPORTATION PROGRAM
DEVELOPING THE UTP 18
2021 UTP Funding Distribution by Category
need to address rural highway capacity or the impacts of energy
industry traffic. Accordingly, TxDOT districts and MPOs customize their
own metrics for identifying the most important transportation projects
in their respective regions. However, all evaluation criteria must align
with TxDOT’s statewide strategic goals, performance measures, and
targets for the transportation system.
TxDOT provides its districts and partnering MPOs with a software
application to compare candidate projects based on their projected
benefits to the Texas transportation system. The application evaluates
each project’s potential impact on safety, preservation, congestion,
and connectivity, as well as its economic and environmental effects.
TxDOT uses this data-driven approach to select the projects with the
best return on investment.
Once the districts and MPOs have identified their highest priority
projects, they assess the work that will be needed to make the
projects a reality. Project development activities can include detailed
planning, engineering design, environmental analysis, public
involvement, right-of-way acquisition, and utility relocations. Potential
projects, however, are not eligible to complete development activities
until they are matched with available funding from a UTP category and
preliminarily scheduled within the UTP’s 10-year time frame.
Step 6:
Match Priority Projects to Allocated
UTP Funding
Once a project is selected, TxDOT refines the construction cost
estimate and identifies potential funding. The process of matching
selected transportation projects to available funds is known as
programming.
Adhering to the UTP planning targets, TxDOT districts collaborate with
the MPOs to assign funding from each applicable UTP category to the
priority projects in their regions. A project may be programmed with
dollars from multiple UTP categories if the project type is eligible.
However, the UTP planning targets limit the dollar amount that each
district or MPO can program from certain categories. At this point,
projects are also assigned a preliminary construction date within the
UTP’s 10-year time frame.
TxDOT staff in each district enter project details, such as locations
and cost estimates into an agency-wide information system. TxDOT
headquarters staff compile this data centrally to assess the state’s
overall portfolio of projects and to evaluate projects proposed by
districts and MPOs for statewide UTP funding categories.
The Commission must authorize all proposed programming of funds
from Categories 2, 4, and 12, as required by Texas Administrative
Code. This authorization occurs through the annual UTP adoption.
Step 7:
Select Projects Competing for Statewide
Funding Categories
Projects funded through certain statewide categories are selected
by TxDOT divisions with corresponding specializations. For example,
TxDOT's Bridge Division manages Category 6 - Bridge based on
measures of bridge conditions around the state. For statewide
UTP Development Steps - Continued
Back to Table of Contents
That is, the UTP is an intermediate programming
document linking the planning activities of the
Statewide Long-Range Transportation Plan (SLRTP),
the Metropolitan Transportation Plans, and Rural
Transportation Plan to the detailed programming
activities under the Statewide Transportation
Improvement Program (STIP) and TxDOT’s 24-month (2-
year) Letting Schedule.
The outcome of the UTP process is a list of projects
TxDOT intends to develop or begin constructing over the
next 10 years, as well as information on the available
funding associated with those projects.
Popular Annual Financial Report - Fiscal Year 2021 | 23
Definition of Terms
Accrual basis is the method of accounting that records
revenues and expenses when they are incurred, in
contrast with “cash basis”, which records revenues and
expenses when the cash is received or paid. (See also
modified accrual basis)
Assets are resources which TxDOT owns (and therefore,
controls) that can be utilized in providing services. For
example, cash from tax collections is an “asset” that is
used to pay for highway construction projects.
Capital assets are the buildings, roads and bridges,
furniture and equipment, land and other long-lived
assets that are utilized by TxDOT in providing services to
its taxpayers.
Current assets include cash and assets that can be
quickly turned into cash to pay this month’s bills.
Deferred inflows of resources are an acquisition of net
position during the year that is applicable to a future
year. For example, a federal grant may be received in
2021 to reimburse TxDOT’s incurred costs, but the
grantor may restrict spending until 2022 because that is
when the federal budget has appropriated them.
Deferred outflows of resources are a consumption
of net position during the year that is applicable to a
future year. This is the opposite of deferred inflows of
resources.
Fund balance denotes the amount of equity in a
governmental fund, and represents assets plus deferred
outflows of resources, less liabilities and deferred
inflows of resources. Business-type funds use the term
“net position.”
Government-wide reporting provides an aggregate view
of TxDOT’s financial activities consolidating governmental
and business-type activities using the accrual basis of
accounting.
Liabilities are current obligations to use resources that
the government has little or no discretion to avoid, such
as payments owed to suppliers.
Long-term liabilities include items such as bonds, loans,
pension contributions and other obligations due more
than one year in the future.
Modified accrual basis is the method of accounting
used for governmental funds, and focuses on whether
those funds have sufficient resources to pay their bills in
the short-term.
Net investment in capital assets is the portion of net
position that represents the historical cost of capital
assets less the amount of debt used to acquire them.
Net position is the residual of all other financial
statement elements found in accrual basis statements:
the difference between a) assets plus deferred outflows
of resources; and b) liabilities plus deferred inflows of
resources.
Restricted net position is the portion of net position
subject to external spending restrictions, such as state
law, bond covenants or contracts.
Unrestricted net position is the portion of net position
not tied up in net investment in capital assets or
by external legal restrictions. It is available at the
government’s discretion to pay bills.