GOVERNOR
ANNOUNCES AMENDMENTS TO TRANSPORTATION FUNDING
LEGISLATION
Today, Governor Kaine announced major amendments to
the transportation funding legislation (HB
3202) passed by the General Assembly several weeks
ago. The House and Senate leadership have agreed to seek
support from their members to pass the amendments.
While commenting that the legislation, even with the
amendments is far from perfect, the Governor said that
the legislation now represents "an important step
forward in meeting our transportation needs."
Here are some of the key provisions of the
amendments:
- The Northern Virginia and Hampton Roads regional
funding packages have been substantially rewritten
to provide more than $400 million and $200 million
in new transportation funding to those regions. The
amendments give the local government considerable
more flexibility in raising transportation revenues.
Most of the key Mayors and Boards of Supervisors
Chairs were at the press conference and said they
would support the legislation.
- The statewide bond package is increased from $2.5
billion to $3.0 billion, with a dedicated revenue
stream (tax on insurance proceeds) to pay the debt
service. The amendments would allow the bonds to be
used for all road systems. $100 million in bonds
could be issued this year, with $300 million a year
in subsequent years.
- The amendments provide $376.7 million a year in
new revenues for statewide transportation in FY 09,
increasing to $420.6 million in FY 13.
- When new revenues and bond proceeds are combined
(net of debt service) there would be $517 a year in
new transportation funding in FY 09 increasing to
more than $527 in FY 13.
- Combining new revenues with bond proceeds and the
regional funding packages, there would be more than
$1.1 billion a year in new funding for
transportation.
- More than 75% of the new funding would go to
highway projects, including more than $175 million a
year increase statewide for maintenance.
- The reliance on $180 in general funds that would
have to be appropriated every two years has been
eliminated. Instead the equalization between diesel
and gasoline and $0.03 of the current recordation
tax would be dedicated to transportation.
The Governor's press release can be found at: Governor's
News Release. The detailed financial impact
information can be found at: Financial
Impact of Amendments
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