• Current fuel taxes do not cover the cost of Texas roadways, nor will they cover future investment requirements.
• None of the conventional alternatives will close the funding gap.
o Stopping diversions and recovering Texas' full share of federal funds will be helpful, but the amounts are far too small to cover the funding gap
o Indexing and raising the state motor fuel tax could close a significant portion of the gap, but only in the short term
o Higher taxation of fuel is not a reliable longer-term source for highway funding due to technological advances, changes in driving habits and other policy considerations mandating lower fuel consumption (environmental, national security).