TxDOT's $1 billion blunder leads to audit request

The letter followed a recent legislative hearing when TxDOT officials were questioned by lawmakers regarding the agency's projected $3.6 billion shortfall by 2015. TxDOT officials said that shortfall, plus increasing maintenance costs, would result in reducing new construction. TxDOT officials took that message across the state to local government officials who were told some of their local projects might be put on hold due to lack of funding.

After the hearing, TxDOT Executive Director Amadeo Saenz admitted the department "made mistakes and miscalculations" and that it is updating its figures.

Among the issues cited in the letter from Dewhurst and Craddick were that the model used for the forecast did not include $3 billion in funding in bond proceeds approved by Texas voters, $5 billion in General Obligation bonds approved by voters and Mobility Fund bond proceeds. The two also questioned if inclusion of a 5 percent inflation factor is "a sound accounting decision" and consistent with previous TxDOT practices. The two also questioned TxDOT's fund allocation practices and its figures for maintenance needs for Texas roadways. They asked that the audit scope include "forecasting construction cost and funding allocations by geographic region."

A TxDOT spokesman noted that during the joint hearing of the Senate Finance and Transportation and Homeland Security committees, agency officials said that they "welcomed" an audit. "That position stands," he said.