Texas State Auditor Releases Report Explaining $1.1 Billion TxDOT Accounting Error

A 66-page report released on August 28, 2008, concludes, "Ineffective internal communication, a complex reporting structure, and misunderstanding of reported data led the Department of Transportation (Department) to overschedule $1.1 billion in planned contract awards for fiscal year 2008." The report also notes that TxDOT, failed to immediately communicate the error to oversight entities and other officials. And while changes have been made to correct the problems the SAO concludes the reporting process still need improvement. Of significant concern to CorridorWatch is the report's well documented pattern of processes and procedures that obscure TxDOT's actions and policy decisions from the public and the legislature. In this case a billion dollar error was communicated to the Transportation Commission members in private briefings. [State Auditor's Office Report 08-045]

On behalf of our members CorridorWatch has submitted official comments on the Sunset Advisory Commission Staff Report addressing the Texas Department of Transportation (TxDOT). The Sunset staff report presented 45 specific recommendations under six issue headings. [Sunset Advisory Commission Staff Report]

In our 20-page comment document CorridorWatch addresses all twenty-four recommendations found under the first four of six issue topics. CorridorWatch concurred with five staff recommendations, offers alternatives to seventeen staff recommendations, and makes no comment on the remaining two staff recommendations. No comments were made on any of the 21 staff recommendations found under the last two issues: (5) regulation of motor vehicle dealers, salvage vehicle dealers, and household goods carriers; and, (6) regulation of outdoor advertising. [CorridorWatch Comments: TxDOT]

In producing the comments we followed the format and recommendation numbering system used in the staff report. Most of our recommendations are additions or modifications to the original staff recommendations, and are based on the same supporting detail. Accordingly, it is important to refer to the staff report when considering the recommendations offered by CorridorWatch.

In the process of reviewing and commenting on the staff report CorridorWatch focused on three key elements: Accountability, Transparency and Responsiveness.

CorridorWatch highlights five recommendations as being the most important. In the order of appearance they are:

CorridorWatch Recommendation 1.1
Abolish the Texas Transportation Commission and replace it with a State Transportation Board comprised of an appointed Commissioner of Transportation and six elected members. (page 5) 

Linda's View [Appointed Transportation Commissioner vs. an Elected Commissioner?]

Sunset Advisory Commission Staff Recommendation 1.5
Continue TxDOT for four years. (page 8)

CorridorWatch Recommendation 2.1
Require TxDOT to redevelop and regularly update the long-range Statewide Transportation Plan using formal input from state agencies, political subdivisions, local planning organizations and the general public to reach mutually acceptable descriptions of total system needs, statewide transportation goals, and the measurement of progress toward those goals. (page 9)

CorridorWatch Recommendation 3.1
Require TxDOT to develop and implement a public involvement policy that guides and facilitates meaningful public involvement efforts agency wide. (page 13)

CorridorWatch Recommendation 4.9
Require the Contract Advisory Team to review TxDOT's development of comprehensive development agreements and grant authority to stop solicitations and execution of comprehensive development agreements. (page 20)

In making comments to the Sunset Advisory Commission CorridorWatch outlined these guiding principles:

Provide strong, direct accountability. Ensure that all Texans have an equal opportunity to effect and participate in the decision making process at all levels either directly or through representatives that they themselves have selected.

Strengthen regional control. Build on the TxDOT districts to establish a regional structure for coordination of all activities.

Decentralize the planning process. Begin decision making at the lowest planning level; collaborate and coordinate planning with peer planning units; collaborate and coordinate planning with regional planning units; and, integrate planning upward to the State Transportation Plan.

Transportation policy must not be motivated by the pursuit of revenue. Transportation policy, planning and implementation must seek to meet the needs of the public; and must not be subrogated to the financial needs of the state's transportation agencies. Ultimately the citizens of the state pay for the public transportation infrastructure regardless of the financing method used. As the owner and consumer they must retain the right and opportunity to decide what they are willing to pay for.

TxDOT should not be responsible for funding itself. Nor should transportation facility generated revenues be exempt from legislative appropriation and budget oversight.

Contracts and agreements must not be permitted to effectively establish public policy, circumvent external fiscal controls, or thwart legislative authority. Ensure that safeguards are in place to provide every opportunity for the state to avoid a flawed or unacceptably high-risk agreement prior to execution.

Public information must be made easily accessible. The decision making process must be open and transparent. The public should not be required to file open records requests to obtain routine documents.

FOR MORE INFORMATION:

TxDOT's Self-Evaluation for the Sunset Review

Sunset Advisory Commission Staff Report

CorridorWatch Comments: TxDOT

Guide to the Texas Sunset Review Process

Sunset Advisory Commission Member Contact Information

Sunset Commission Website