GOVERNOR, FIX THE TRANSPORTATION FUNDING BILL

HB 3202 was touted by many as the "solution" to our transportation funding crisis. Passed at the last minute, without any time for review or input, the bill is significantly flawed.

Over the next two weeks, the Governor is meeting with local government and business leaders across the state to talk about the bill and seek their input. So far, the message is clear, "Governor, fix the bill." The Governor has pledged to seek significant amendments to the legislation.

The Governor has until March 26th to submit his amendments to the transportation funding legislation. The General Assembly will return on April 4th to vote on those amendments.

We need to give the Governor our support in this process. Our message to the Governor and the General Assembly is: "The bill (HB 3202) has significant flaws that must be fixed if we are going to provide a meaningful solution to the transportation funding crisis."  Here is some supporting information:

• The legislation does not solve the maintenance problem. This year VDOT will take $450 million from the construction program to cover immediate maintenance shortfalls. That number grows by $50 million dollars a year just to keep up with inflation. HB 3202 provides less than $200 million a year in maintenance funding. Under this plan, the patient (VDOT) will continue to bleed to death.
• There isn't enough sustainable money to address the funding crisis. There is less than $300 million of "sustainable" funding (funding that can be expected to occur year after year) in HB 3202. There has been general consensus that at least $1 billion a year in "sustainable" funding is needed to meet our transportation needs.
• The bond package is insufficient. The legislation contains a $2.5 billion bond package. The bonds would be issued at a rate of up to $300 million a year for 8-9 years. 80% of the proceeds would be distributed to Districts based on the current formula (with the option for the CTB to adjust the amount by 10%). The bond proceeds can only be used for interstate and primary roads. That means a District like Lynchburg would only get about $16.8 million a year! The debt service on the bonds could reach almost $200 million a year. The debt would be paid off over 20 years. The General Assembly says it will appropriate approximately $180 million of general fund money (money that currently goes to schools, healthcare, and public safety). The money to pay the debt service would have to be appropriated every two years…with no guarantee that it will be made every year for 20 years.
• Secondary road need would not be met. In the past 10 years, localities have seen their funding for urban and secondary roads decrease by 30-40%. Factoring in inflation, most localities have about a third of the buying power for the secondary and urban road than they did 10 years ago. With the limitations on the use of bond proceeds, only $300 million in sustainable revenue, and the failure to meet maintenance demands, the legislation will provide little or no additional funds for urban and secondary roads.
• The regional packages won't work. The legislation does not provide any new revenues for Northern Virginia or Hampton Roads. Rather, the legislation allows those regions to raise $400 million and $200 million respectively, if they enact a series of new fees and taxes. The only fees and taxes they are allowed to enact are those in the bill. In addition, if the Northern Virginia localities enact the new fees and taxes, they must take over their road construction program. Fairfax, Loudoun and Price William counties have already said they would not enact the provisions of the bill.  In Hampton Roads there are not currently seven (required in the legislation) local governments that will adopt the new local revenue provisions in the bill.

There are several ways that you can let the Governor know your feelings:

1. E-mail him at: Governor's E-Mail 
2. Go to the Governor's "Fix the Bill" link and fill in your information: Fix the Bill Website

Be sure to copy your legislator on anything you send the Governor. Your legislator's contact information can be found at: Contact your Legislator