HOUSTON, Texas (Covering Katy News) — The Harris County Toll Road Authority's quarter-billion-dollar surplus has sparked scrutiny of wasteful spending and inflated staffing contracts, raising questions about oversight. Instead of paying down debt or reducing tolls, the funds are being diverted to commissioners' discretionary projects while vendors charge excessive markups, according to Dolcefino Consulting.
In Harris, County Commissioner Rodney Ellis allocated 42% of his budget from surplus funds, including $11 million for park projects according to Dolcefino.
The Harris County surplus has doubled since 2019, when it was $125 million. While state law requires the funds to be used for road projects, a loophole allowing spending on "related projects" has enabled commissioners to divert millions to other initiatives.
The investigation also revealed HCTRA paid temporary staffing agencies more than double the county's standard rates for call center workers, with some vendors charging $38 per hour while paying employees as little as $15 per hour – a markup of 150 percent compared to the industry standard of 30 percent. Typical staffing companies add thirty percent to the price over what they pay according to the report.
Electronic Transaction Consultants (ETC) and its subcontractors, have received more than $47 million in HCTRA payments since January 2021. Records show one August 2022 invoice totaled $1.1 million for temporary workers, with markups costing taxpayers approximately $8 million more annually than necessary.
One of the more controversial payments mentioned in the report was $250,000 per year for a call center manager. It wasn't clear what the manager was actually paid by the vendor, but given the large markup the vendor charged HCRTA, it's likely nowhere near a quarter-million dollars per year.
"It's shocking you've got a system that has really no accountability," said State Sen. Paul Bettencourt. "What outrages the public is they pay a toll and $250 million doesn't even go for the toll roads they're driving on right now."
HCTRA Executive Director Roberto Treviño, who received a 40% raise to $485,000 annually, has faced criticism for the agency's spending practices. The Harris County District Attorney's office has been notified about the billing markups, and County Commissioner Tom Ramsey has requested an audit.
Bettencourt plans to introduce legislation requiring state audits of HCTRA and restricting surplus funds to debt reduction or toll reduction. The agency currently carries $7-8 billion in debt.
"Unless you have a standard that you can measure against, all of this is an open loop and it's subject to fraud," Bettencourt said.
Houston businessman and columnist Bill King called the lack of transparency "ridiculous," while State Rep. Briscoe Cain demanded an end to "Harris County's abuse of the people's money and resources."
The investigation has also revealed that HCTRA's recent staffing contracts weighted price at only 25% of scoring criteria, allowing the agency to continue contracting with higher-priced vendors despite lower bids being available.
Watch the report from Dolcefino Consulting below.