HOUSE AND SENATE PASS TRANSPORTATION FUNDING LEGISLATION; GOVERNOR PLEDGES AMENDMENTS

Late Saturday, the House of Delegates and the Senate both accepted the conference committee’s recommendations on HB 3202 passing the transportation funding measure.  The debate was heated barely passing the Senate (21-18).  Several of the Senators commented that they were voting to support the bill only so that a “vehicle” would remain alive for the Governor to submit amendments.  The bill will now go to the Governor for his review.

 The Governor has pledged to make amendments to the bill and return it to the General Assembly.  In a Friday press release, the Governor said about the conference committee bill:

This last-minute proposal does not represent a compromise, and it certainly does not represent a solution to Virginia’s transportation challenges. This proposal would drain almost $200 million a year from the General Fund, pitting transportation against our core priorities in public education, public safety, and public health….This proposal does not address our well-documented statewide transportation needs….This proposal does not do enough for rail or mass transit, which are key elements to a true comprehensive transportation solution.

On Saturday, after the conclusion of the legislative session, Governor Kaine commented:

However, when the final conference report on a long-term revenue package for transportation was developed, too few people were involved, and as a result, the bill on its way to my desk is not only insufficient to address Virginia’s needs, but contains numerous issues to address.  I will use the 30 days between now and the reconvened session on April 4 to consult with legislators, local elected officials, and other stakeholders to fix the problems in the bill and reach a comprehensive, long-term, and statewide transportation solution.

The new “compromise” still relies heavily on general fund appropriations that would have to be re-appropriated every budget cycle, and falls short of the statewide “need” of $1 billion a year that many legislators support.  Here are the details:

• The legislation contains three funding packages:  A statewide component, a NOVA regional package, and a Hampton Roads regional package.
• Statewide funding package includes:
• $760 million in one-time general funds in FY 2008
• On-going funding of $500-600 million per year (estimates include several significant ASSUMPTIONS) including:
• Real estate title recordation fee revenues that currently go to the general fund.  These revenues would have to be appropriated in the every cycle.
• 50% of all future general fund surpluses. These revenues would have to be appropriated in every cycle.
• 1/3 of the insurance premium tax. These revenues would have to be appropriated in every cycle.
• Increase in the vehicle registration fee.
• Abusive driver fines.
• Increases in the registration and overweight fines for heavy trucks.
• $2.5 billion bond package. $300 million issuance a year beginning in FY 2008. Bonds would be paid back from the general fund appropriations.
• NOVA package, if adopted by the localities, would produce $400-420 million per year in new revenues for transportation.
• Hampton Roads package, if adopted by the localities, would produce about $200 million a year in new revenues for transportation.  
• It contains many of the land-use reforms originally contained in HB 3202 (with many of them being watered down from the original version).
• VDOT reforms contained HB 3202:
• General Assembly selection of some CTB members;
• Competitive bidding of VDOT functions
• Consideration of road reclassifications.