 |
 |
Virginia's Transportation Funding Crisis – THE ISSUE |
 |
Virginia has a full-scale transportation funding crisis. Investments for new projects, both highways and public transportation, are declining at alarming rates. All modes of transportation are becoming increasingly more important to the prosperity, health, education, safety, security, environment and overall quality of life of every Virginian - but the resources are not available to meet demands.
According to an October 2004 report by The Road Information Program (TRIP), a national transportation research group, Virginia's congested and deteriorating transportation system costs Virginians more than $4 billion every year because of increased fuel costs, lost time, greater occurrence of accidents and more frequent repair bills. The reduced funding level and lack of other funding sources leave little or no opportunities for improvements to all modes of transportation. As a result, funding will be delayed for many needed projects now in the planning stages, preventing them from moving forward to the construction phase. It is clear - the demands on our transportation systems will continue to grow, but the resources are not available to meet those needs.
HOW WE GOT TO THIS POINT
Virginia's budget for new transportation construction and expansion projects is shrinking and the demands on the state's transportation system are increasing. The last significant infusion of new transportation funds was enacted January 1, 1987 when the Commonwealth raised the gas tax by 2.5 cents to its current 17.5 cent level, added one half percent to the state sales tax and increased the motor vehicle sales and use tax by 1 percent.
As a result, Virginia's gasoline and sales taxes remain among America's lowest. Considering inflation since 1987, the motor fuels tax revenue's purchasing power has decreased by nearly 40 percent. Lack of funding forced the Commonwealth Transportation Board to cut $1 billion from the Virginia Department of Transportation's 2004 Six Year Plan. This was on top of a $2.8 billion cut in the 2002 transportation spending blueprint.
The 2004 General Assembly adopted $1.4 billion in tax increases that provided new funds for education, public health and law enforcement, but no additional revenues for transportation. In 2005, state leaders provided for a substantial one-time infusion of funds, but only a slight increase in long-term funding. With no significant increases in sustained transportation funding in nearly two decades, more and more of the available funds must be used for maintenance and less can be utilized for new project development. As a result:
|
|
|
|
|
Only 25 percent of all transportation funds are dedicated to new road construction. Transportation infrastructure maintenance consumes 50 percent of funds, eight percent is appropriated to both operations and debt service and the final eight percent is dedicated to transit/ports/airports.
|
|
|
The Transportation Trust Fund, which was created to pay for roads, mass transit, air and port projects, is being depleted by maintenance needs. State law requires that maintenance costs be given priority over new projects. Absent the infusion of new funds, soon there will be no money available for new road construction or transit and rail congestion relief.
|
|
|
The annual allocations for urban and secondary road projects are also steadily declining. The impact reaches beyond high-profile, statewide projects.
|
|
|
The 2005 General Assembly directed that $97 million in federal funds be spent on needed maintenance projects – the first time federal highway funds have been diverted from construction.
|
Maintaining and developing Virginia's transportation system grows increasingly more difficult each year. Vital tasks such as snow removal and storm repair cost more than many people realize. With steady population growth and more demands on all modes of transportation, the Commonwealth must make adjustments to keep up with demand. Consider:
|
|
|
|
|
Virginia operates and maintains the third largest state highway network in the United States including 58,000 miles and 12,000 bridges.
|
|
|
Public transportation ridership has increased statewide by more than 60 percent since 1986. Some areas have seen even more growth. The number of riders using Virginia Railway Express commuter rail more than doubled from 1997 to 2003. Metrorail and many bus routes serving Northern Virginia are now facing severe capacity problems. Eighty-seven percent of respondents in a statewide survey said they wanted more public transportation services. However, funding is inadequate to meet the growing demand for transit and inter-city rail service statewide.
|
|
|
Unless significant improvements are made, the Port of Virginia will reach full operating capacity by 2010. It will require significant modernization and expansion to maintain its place as one of the most successful networks of cargo-handling marine terminals on the eastern seaboard.
|
|
|
Unprecedented international and domestic growth will require Virginia's commercial service airports to add new runways, expand passenger terminal and parking facilities in addition to addressing growing air cargo industry requirements. The costs of needed new air capital improvements over the next 20 years are in excess of $5.5 billion.
|
What is the result of increased demands and reduced resources? More than 200 projects have been dropped from the state’s Six-Year Plan because of lack of funding. And, Virginia has more than $74 billion in unmet road needs and more than $30 billion in unmet transit and inter-city rail needs.
WHAT THE GENERAL ASSEMBLY DID IN 2005
This year's General Assembly approved $848 million in transportation budget amendments, $371 million of it new money beyond the growth in existing revenue sources. But the bulk of the $371 million was a one-time transfer of cash from the state's revenue surplus, which is not likely to be repeated. Only $131 million represents money that will be available year after year to make a long-term impact on the problem.
The Assembly directed that much of the money be used to encourage private enterprise and local governments to partner with the state. It also created Virginia's first program to subsidize rail projects, many of which will also be partnerships with private enterprise. One thread that ties all these new approaches together is the way the state is looking for other entities, public and private, to share the cost of addressing our transportation needs.
CONCLUSION
In short, since 1987 when the General Assembly increased dedicated funding for transportation, roadway travel has grown by 79 percent, registered vehicles have increased by 53 percent and the state’s population has grown by 20 percent. One-time cash infusions are not sufficient. Years of additional study are not necessary. It's time for a comprehensive, long-term solution, with dedicated, sustainable funding targeted to performance-based road, transit, rail, port and airport priorities.
|
|
