Footing the bill : evaluating local government funding mechanisms for sidewalk infrastructure in Austin, Texas

The City of Austin is missing almost half of its sidewalk network and 80% of existing sidewalks are in poor condition. Expanding the city’s sidewalk network has repeatedly been recognized as an important component of Austin’s larger mobility goals, but how the city will fund this effort is unclear. The city’s Sidewalk Master Plan estimates that building out and repairing the entire network will take almost 200 years at current funding levels. Austin’s sidewalk investments are primarily being funded by bond money, but is depending solely on bond funding for sidewalk infrastructure advisable? Bonds are a form of borrowing not a revenue generating mechanism. Having a revenue generating mechanism dedicated to active transportation investments can help achieve multimodal transportation goals sooner. However, local governments are often constrained in their ability to implement such mechanisms due to state authorization laws. Given that sidewalks are primarily a local responsibility, the inability to generate revenue at the local level for transportation projects can severely hamper walkability goals. This report highlights examples of local governments that are using revenue generating mechanisms to fund pedestrian infrastructure and evaluates the potential implementation of such mechanisms in Austin, TX. Using a qualitative case study design, this study investigates the different approaches used in the following locations: Ithaca, NY; Fort Wayne, IN; Seattle, WA; and San Antonio, TX. Funding mechanisms used in these case study cities include special assessment districts, local income taxes, property tax assessments, and sales taxes. The report finds that each city has had varying degrees of success with their funding mechanism, with three of the four case study cities generating more sidewalk funding per capita than bond funding alone in Austin, TX. Of the different mechanisms evaluated, dedicated property tax assessments and special assessment districts are the best options for addressing Austin’s sidewalk needs. However, state preemption laws in Texas make implementing these mechanisms difficult. Examples of best practices highlighted in this report should be used by local officials to lobby for more autonomy when it comes to funding local transportation needs.