A Legislative Update  for the Virginia Transportation Construction Alliance January 22, 2007

GENERAL ASSEMBLY UPDATE

KEY TRANSPORTATION MEASURES INTRODUCED

House Republican leaders have introduced a series of bills as their approach to solving the transportation problem:

LAND USE/GROWTH CONTROL

HB 2777 patroned by Delegate Clay Athey (R-Front Royal) would allow localities to gain more efficient and effective use of existing infrastructure and roads by providing for the adoption of land use policies that focus growth in pre-designated urban development areas.

HB 2680 patroned by Delegate Jeff Frederick (R-Prince William) would create a pilot program permitting participating localities to assess impact fees on development in areas that are currently more rural and less densely populated. In addition to impact-fee revenues, participating counties would receive funding from the state-and potentially the ownership of current equipment from the Virginia Department of Transportation (VDOT)-to maintain secondary roads within new "urban transportation service districts."

HB 1886 patroned by Delegate Bob Marshall (R-Manassas) would place a moratorium on the acceptance of new roads created by development into the VDOT-maintained system.

TRANSPORTATION FUNDING

Represented as a "compromise" the Speaker has introduced legislation that would provide a series of funding measures for transportation. The legislation takes more than $250 million each year from general fund programs and would strap the state with over $2 billion in debt, to be paid back by VDOT from "new" revenues. While the proposed legislation contains about $600 million in proposed new funding for transportation for Northern Virginia and Hampton Roads, it contains less that $190 million in reliable, sustainable, dedicated, new statewide funding for transportation. Ironically, that is about the same amount of new debt service VDOT would incur. The summary below highlights the funding elements. The entire bill can be found at HB 3202.

Recurring New Revenue
General Funds $250 million/year starting in 2008 
Diesel Fuel Taxes  $20 million (equalizing with gas) 
Abusive Driver Fees  $61 million 
Higher Registration Fees and Penalties on Heavy Trucks $30 million 
Vehicle Registration Fee Increase $71 million
 Budget Surplus
50% of Future Non-Recurring Surplus Dedicated to Transportation
2008 $227 million
Future $64 million (est.)
One-Time Investment
2006 Budget Carry-Over $339 million
Bonding
Debt service to be paid by VDOT from increased revenues
First Issue (2008-2012) $1.3 billion
Second Issue (2012) $300-400 million/year
Regional Funding Packages
Funding to come from a variety of sources, such as increases in rental car fees, real estate assessments, car registration fees, etc.
Northern Virginia $389 million/year
Hampton Roads $209 million/year

VDOT REFORM

VDOT reform measures include the establishment of measurable goals to relieve highway congestion; outsourcing/privatization of VDOT functions; expedited state environmental review process for highway construction projects; fully automated electronic operation of Virginia toll facilities; the reconsideration and reassignment of road classification based on a road's functionality; and, General Assembly input on the appointment of Commonwealth Transportation Board members.

OTHER TRANSPORTATION LEGISLATION

Dozens of other transportation bills have been introduced. More updates will follow this one. For a list of the transportation bills that have been introduced so far got to: Transportation Legislation


Virginia Transportation Construction Alliance
620 Moorefield Park Drive, Suite 120
Richmond, Virginia 23236-3692
Phone: (804) 330-3312 Fax: (804) 330-3850
e-mail: vtca@vtca.org Web: www.vtca.org