TxDOT accounting error could lead to state audit

Voters recently approved $3 billion in highway bonds and voter approval was secured for $5 million in certificates of obligation. Still TxDOT officials said they do not have enough money to complete some current and future projects and that the agency is facing a more than $3.5 billion shortfall by 2015. TxDOT officials met with local government officials at numerous sites throughout the state to address the shortfall and the impact it would have on highway projects in their respective areas.

"We expect, and we must have, a transportation department and policy we can trust," said Sen. Kirk Watson of Austin. "Executive Director Amadeo Saenz said he welcomes an audit of his department's finances and practices." An audit is anticipated.

In response to the testimony during the committee hearing, TxDOT officials report they are revising their figures on the projected shortfall of funding for future projects. "It is important to remember that the projects we begin today will pay out over a period of years," wrote Texas Transportation Commission Chair Hope Andrade in a letter to Lt. Gov. David Dewhurst. Her comments were in response to a letter from the lieutenant governor questioning TxDOT's projected shortfall numbers that led to this week's hearing. "If we do not think we have sufficient cash flow to pay the bills in the out years, we cannot let those projects today."

Andrade said in her letter that TxDOT will work with the State Auditor's Office regarding areas that agency identified where TxDOT can improve an updated long-term needs plan. "Those suggestions have been incorporated by the department and our local partners," wrote Andrade, "and we intend to have an updated report by summer."

The Transportation Commission chair said the department is "not cancelling projects under way or cancelling contracts," but added that by approving fewer contracts "we will not be obligating ourselves to make payments that our cash forecast indicates cannot be fulfilled in future years."