AUSTIN – Today, the Texas Public Policy Foundation released a policy perspective on Texas’ municipal right-of-way fees and how they unnecessarily cost Texans billions.
These fees are charged by cities to consumers of electric, telecommunications, gas, or other services that use the public right of way. The brief highlights how the funds are redirected to projects not associated with right-of-way management.
“Cities complain about unfunded mandates, but the more than $5 billion in right-of-way fees collected from consumers over the last decade shows that cities are not lacking for revenue,” said Bill Peacock, director of the Center for Economic Freedom at the Texas Public Policy Foundation. “To take the burden off of Texans, cities should reduce these fees, return them to their citizens, and look for ways to reduce spending.”
From 2008-2017, consumers in Texas’ 10 largest cities paid $5.2 billion in right-of-way fees on their telecommunications and electricity bills, only to see the fees redirected to pay for line items from cities’ general funds. With the 2017 figure reaching more than $543 million, the amount withdrawn from taxpayer pockets is on the rise.
“During the past 10 years, local governments have charged the people of Texas billions of dollars in right-of-way fees, claiming the fees are fair and reasonable compensation for the use of a public right-of-way,” said Olivia Krog, research associate for the Center for Economic Freedom at the Texas Public Policy Foundation. “The reality is that demanding citizens pay for the use of their own property, to the tune of more than $500 million a year, is neither fair nor reasonable, but instead designed to benefit special interests and local governments.”
To read the full report, visit the Texas Public Policy Foundation website.
For more information or to request an interview with Mr. Peacock, please contact Alicia Pierce at [email protected] or 512-472-2700.
Bill Peacock is the vice president of research and the director of the Center for Economic Freedom at Texas Public Policy Foundation.
Olivia Krog is a research associate for the Center for Economic Freedom at the Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas. The Texas Public Policy Foundation aims to advance a societal framework that effectively fosters human flourishing based upon cooperation and mutually beneficial exchange of ideas and speech