AG Opinion: TIF Distribution Formula Clarification

January 28, 2020

Legislative News

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Effective Sept. 1, 2019, the funding formula for the County Transportation Infrastructure Fund (TIF) program changed to clarify distributions. With this clarification, counties can expect a notice from the Texas Department of Transportation (TxDOT) within the next couple of months explaining the amount of funds available to them.

The formula change, determined by Texas Attorney General Ken Paxton (KP – 0280), tweaks the funding calculation set out in House Bill 4280 by Rep. Geanie Morrison (R-Victoria). This determination was made in response to a request from House Committee on County Affairs Chair Garnet Coleman (D-Houston) about TxDOT's funding determination and distribution process.

Formula Clarification Explainer and Timeline:

  • The comment period on Texas Transportation Commission’s proposed rules for the funding determination and distribution process closed Dec. 30.
  • TxDOT is currently reviewing comments.
  • The Transportation Commission may adopt the proposed rules as early as Feb. 27 after consideration.

How Counties are Affected:

  • After adoption of the rules, TxDOT will notify each county judge about the application process and explain it.
  • Counties need to apply for preapproval for projects covered by the TIF program. After approval, project efforts can begin.
  • TIF program funding will be distributed through a reimbursement grant so project work completed on a monthly basis can be reimbursed. Only projects started after approval are eligible.
  • There will only be one call for grant applications with a firm deadline
  • Updates will be posted on the TIF program website and be found by searching for the term "County Infrastructure."

In addition to changing the funding formula, HB 4280 revises the allocation requirements of the TIF grant by decreasing the allocation of grants distributed by 10% according to weight tolerance permits. It increases from 50% to 60% the total allocation of grants distributed according to well completions. HB 4280 also specifies that 45% of the total allocation be distributed according to horizontal well completions and 15% be distributed according to vertical well completion.

For questions, contact Rick Thompson at (800) 456-5974.