Category: Virginia

Historic Transportation Bill on its way to Virginia Governor

The final hours of the Virginia State Senate session have handed Governor Bob McDonnell the legacy-building legislation he’s been fighting for.

Lawmakers voted for a landmark transportation funding package that will raise $880 million dollars for road construction, maintenance, and transit.

The legislation replaces the per gallon gas tax with a 3.5% tax on gas at the wholesale level and a 6 % wholesale tax on diesel fuel.

The state’s sales tax will increase from 5% to 5.3%.

And the motor vehicle sales tax will rise from 3% to 4.3%.

In a statement, McDonnell called this an historic day.

“We have worked together across party lines to find common ground and pass the first sustainable long-term transportation funding in 27 years,” McDonnell says.

When it’s fully phased in, the reform bill will raise more than $500 million dollars to erase the maintenance budget deficit, and fund new roads, mass transit, and provide more money for Hampton Roads and Northern Virginia.

There’s a whole wide range of projects, the key is though they have to reduce congestion and be on a regional plan,” Delegate Vivian Watts (D- Springfield/Anandale) says.

Stewart Schwartz from the Coalition For Smarter Growth is cautiously optimistic.

“We need to ensure that we’re fixing congestion at Tyson’s, I-66, and the Route 1 corridor and investing in transit that Northern Virginia needs.”

Getting this bill through was in jeopardy up until the last few hours on the final day of the session.

Senate Democrats had threatened to block passage of the tax and fee increases, unless the Governor agreed not to block expansion of Medicaid to 400,000 uninsured in Virginia.

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Senate Vote Passes $880 Million Highway Reform

The state Senate has passed the first long-term reform to Virginia’s floundering 27-year-old system for funding repairs and upkeep of its 58,000-mile network of highways.

The 25-15 vote sends to Gov. Bob McDonnell what would be the defining policy legacy in the fourth and final year of the single, non-renewable term Virginia allows its governors.

It would replace Virginia’s 17 1/2 cents-per-gallon retail gasoline tax with a 3.5 percent wholesale tax on gasoline and a 6 percent levy on diesel fuel. It boosts statewide sales taxes from 5 percent to 5.3 percent. It increases the titling tax on car sales and adds a $100 registration fee for fuel-sipping hybrid vehicles. It also rules out proposed tolls on Interstate 95 south of Petersburg.

“Giving localities the responsibility to raise taxes to pay for a limited range of projects, while most existing revenue is diverted to wasteful new highway projects, is not a good deal. Over the long term, it will result in local tax base, not state transportation revenues, covering the cost of the transportation systems that serve the majority of Virginians,” Chris Miller, President of The Piedmont Environmental Council said in a statement.

The Executive Director of the Coalition for Smarter Growth said it is now up legislators and local elected officials to watch-dog how the money is spent.

“Where we spend our tax dollars and whether we are supporting more efficient, smarter growth with our transportation investments should be a central topic of this year’s Governors race,” he said.

Photo courtesy of WUSA9

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Why the Transportation Bill is Bad Public Policy and a Bad Deal for Virginia

VIRGINIA – “Look beyond the deal specifics and look at the real implications of the announced deal on HB2313, and you’ll see a bill that represents bad fiscal policy and bad transportation policy,” said Stewart Schwartz, Executive Director of the Coalition for Smarter Growth. “It’s a bad deal for Virginia. Without reforming VDOT spending the statewide component of the funding will be wasted, and all Virginians will have to pay for this waste. On the same day that the conference committee announced a deal proposing about $850 million per year in additional transportation funding, we learned that VDOT is wasting yet more of the $3 billion in funds approved by the General Assembly in 2011,” said Chris Miller, President of the Piedmont Environmental Council. “Yesterday, in a presentation to the Commonwealth Transportation Board, VDOT said it would allocate $869 million in borrowed federal funds to Route 460 and the Coalfields Expressway, two of the most wasteful projects to ever be proposed in Virginia. Then there is the $1.25 billion or so they propose to waste on the Charlottesville Bypass and the NoVA Outer Beltway. ”

NCRTPB votes to consider new access roads for Dulles airport

The National Capital Region Transportation Planning Board voted unanimously Wednesday to approve studying multiple proposals for new access roads on the west side of Dulles International Airport.


Dulles International Airport. Photo: Wikimedia Commons/Joe Ravi CC-BY-SA-30

As a critical hub for trade and commerce, Dulles needs more access roads for cargo trucks, planners say.

Advocates argue that more access roads could mean more cargo trucks, which could mean more trade in an international economy.

“If we don’t improve access to it and the other airports, we’re going to find our economic growth declining,” says Leo Schefer, Washington Airports Task Force president.

But not everyone is in agreement. Opponents point to the price tag, potentially hundreds of millions of dollars.

“At a time when we’re starved for transportation dollars, why are we diverting so much money to these roads on the backside of the airport instead of fixing 66, finishing paying for Dulles rail, revitalizing Route 1 in Fairfax, just dozens and dozens of projects that have not been funded,” says Stewart Schwartz, Coalition for Smarter Growth executive director.

In the hundreds of public comments, residents who oppose the proposed access roads call this a foot in the door toward the creation of what they call an “outer beltway.”

But board chair and Loudoun County Supervisor Scott York says that is not the plan.

“I hope all would understand that this is about supporting the growth of the international airport,” York says.

“The real goal is additional road investment on the backside of the airport to open up the rural areas of Loudoun County and Prince William County to more development,” Schwartz says. “Which is gonna mean more traffic upstream as well.”

Today’s vote means transportation planners will study several alternatives, including the two new access roads or possibly doing nothing at all.

VDOT will then select a preferred alternative before the board votes in July on its long-range transportation plan.

Photo courtesy of Wikimedia Commons/Joe Ravi CC-BY-SA-30

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Residents Seek Answers About ‘Outer Beltway’ During Forum

More than 150 people gathered in the auditorium of John Champe High School Monday night to learn more about the state’s plans to build a new highway across Loudoun and Prince William counties.

For most in the room, there were more questions than answers, even for program organizers—longtime critics who have been fighting the project they call the Outer Beltway in its many forms since the late 1980s.

The latest version is the Commonwealth Transportation Board’s designated Corridor of Statewide Significance, called the North-South Corridor, which would link I-95 to near Dumfries to Rt. 7 east of Leesburg. Options to develop a four- to six-lane road that would provide a new western access to Dulles Airport has been under study for the past year.

In Prince William County, detailed planning already is under way to extend the Prince William County Parkway from its I-66 terminus to Rt. 50 in Loudoun, including a Manassas Battlefield bypass that would have north-south traffic skirt the western edge of the national park along Pageland Lane and Sanders Lane. That road would link to Northstar Boulevard and then to Belmont Ridge Road in Loudoun. From there, an eastern spur, either along Rt. 50 or to the north, would move traffic to Rt. 606 and Dulles Airport.

In Loudoun, communities have already gotten communication from VDOT about studies that will be conducted between through April, including ones for wetland delineation, noise monitoring, culture resource surveys such as shovel tests, soil samples and/or hazardous waste investigations, according to a letter received by the Brambleton Group.

The Brambleton Community Association has already taken action to oppose the alternative that would bring the limited-access highway through the southern part of the community.

“The Board took this action because they feel that the construction of this highway will have long lasting and negative impacts on our community,” Brambleton General Manager Rick Stone said in a letter to residents. The letter goes on to note a limited-access road could reduce property values, increase noise related to truck traffic, negatively impact the environment and change future planned uses for the property included in the study area.

“The BCA Board believes that VDOT should focus their study to the existing right-of-ways along Route 50 (already planned as a limited access road) and on the airport property for which the road will serve,” the letter reads.

Piedmont Environmental Council President Chris Miller and Coalition for Smarter Growth Executive Director Stewart Schwartz told the audience Monday night the project, with a price tag that could exceed $1 billion, would do little to reduce commute times or spur job growth. They also questioned a key underpinning of the state’s push build the road, dismissing as “overstated” the claims that the highway was needed to accommodate growing cargo shipments at Dulles Airport.

Residents wanted to know more about the specific alignments the road would take and how their properties and their neighborhoods would be impacted.

“I don’t think they know and I don’t think VDOT will tell you,” Miller said. “But you should start asking.”

Also making presentations during the session were John Hutchison of Aldie Heritage Association and Charlie Grymes, chairman of the Prince William Conservation Alliance.

Hutchison raised concerns that the highway would undermine efforts to create a rural experience that would attract tourist seeking to escape urban environments. The project was cited as the association’s top concern by members during a recent meeting, he said.

Grymes said the North-South Corridor project would do little to create new jobs in Prince William County and would conflict with the county’s strategic plans. “We should invest where we can grow jobs,” he said, adding that focus should be in the I-95 and Rt. 1 corridors at the eastern end of the county. “If you spend your money on a dumb road you don’t need, you don’t have any left,” he said.

VDOT planners held two community open house meetings on the project in Loudoun and Prince William just before Christmas and the public comment period ended Jan. 18. Representatives from VDOT, the Department of Aviation, Department of Rail and Transportation and Metropolitan Washington Airports Authority are formulating recommendations for the Commonwealth Transportation Board.

Photo courtesy of Leesburg Today

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House transportation bill to face Senate Democrats

RICHMOND — The path forward on a long-term plan to fund transportation projects in Virginia will have to move through skeptical Senate Democrats, though it was still unclear Wednesday what a final package might look like.

A version of Gov. Robert F. McDonnell’s proposal survived the House of Delegates but the state Senate rejected its own version of the bill on Tuesday after Democrats balked at the ideas of swapping the gas tax for a higher state sales tax and of paying for transportation using general fund revenues.

Sen. A. Donald McEachin (D-Henrico) said Wednesday that Democrats were still looking for a substantive plan that would generate closer to $1 billion a year for the state, steer clear of the general fund and not rely on would-be revenues from the passage of federal legislation related to the collection of Internet sales taxes. That legislation, they have said, has stalled in Congress.

“I think that’s the signal we sent last night,” said McEachin, who dismissed accusations that Democrats were unwilling to bargain. “We’re still willing to roll up our sleeves and do some hard work.”

On Tuesday, the Senate sent its legislation to the Finance Committee, effectively killing it and raising doubts about the prospects for the House measure on its way to the Senate. The House-approved bill is now the only surviving version of the governor’s package, and the Senate could amend or kill it.

“I’m very disappointed,” McDonnell (R) said in an interview Tuesday night. “I think the Democrats have a lot of answering to do tonight. They’re going to have to tell us what they’re willing to do. This is a party that says no to everything but higher taxes. I think the Democrats are way out of touch and they need to start being reasonable.”

While Senate Democrats were in lockstep Tuesday, four House Democrats voted in favor of their chamber’s transportation proposal: Rosalyn R. Dance (Petersburg), Luke E. Torian (Prince William), Roslyn C. Tyler (Sussex) and Onzlee Ware (Roanoke City). They cited regional concerns among their reasons for breaking with their party to support the bill.

Sen. Janet D. Howell (D-Fairfax), who voted against the Senate version of the plan, said her Republican colleagues did not offer a plan with adequate funding for public transit projects.

“I’m looking for . . . a plan I can sell to my constituents,” Howell said. “I haven’t seen that yet.”

Northern Virginia Transportation Alliance President Bob Chase said the House bill is “very much a work in progress.”

“The emphasis in the House has been to get something out,” said Chase, an early supporter of McDonnell’s plan. “I think it’s been crafted . . . in a way to try to show as many legislators as possible that there’s something in the bill that they ought to like. Where the bill stands now doesn’t necessarily preclude anything from being considered in conference.”

Stewart Schwartz, executive director of the Coalition for Smarter Growth, said the House’s version of the governor’s plan is “still a very flawed bill.”

“Eliminating the gas tax makes no economic or transportation sense,” Schwartz said Tuesday. “If it reduces gas prices like the governor projects, it is likely to increase the amount of driving, decrease transit use and increase congestion, especially in the two most urban regions of the state. There is nothing in this to guarantee that local jurisdictions across the state will get the local funding hey need. There’s no way to make this plan better at this point.”

Schwartz also wasn’t optimistic about the plan’s chances for improvement in a conference committee, which he predicted would be “disastrous” for Northern Virginia and Hampton Roads.

“Once it goes to a closed-door committee . . . dominated by the governor’s party, you are unlikely to get a bill that would address the many concerns that the metro regions have identified. The worst thing would be to have such a flawed plan move forward.”

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Background Memo on Virginia Transportation Funding

1. VDOT is wasting money on the wrong projects. These include: Route 460: This $1.4 billion proposed new highway between Suffolk and Petersburg; over $1.1 billion of taxpayer funds, plus tolls. The current Route 460 carries just 11,000 trips per day. Coalfields Expressway: $2.8 billion for a new highway in least-trafficked area of the state. Charlottesville Bypass: This $243 million project doesn’t solve congestion and saves minimal travel time for commuters. North-South Corridor: This estimated $1 billion piece of an Outer Beltway around D.C. doesn’t address commuter needs and would add development and traffic in areas without infrastructure. Meanwhile, the state says it will not contribute to roads for Tysons, it hasn’t provided adequate funds to reduce tolls for Dulles Rail and Midtown/Downtown Tunnels, and it has zeroed out secondary road funds.

McDonnell Pitches Tax Plan

Addressing a friendly audience this afternoon at the Commonwealth Transportation Board, Governor Bob McDonnell plugged his transportation financing plan, arguing that it was “economically sound, politically viable” and will “fix the problem.”

“Our problem is a math problem,” the governor said. “Revenues are on a downward path and the cost of asphalt is on an upward path.” Within a few years, $500 million a year will be diverted from the state’s construction fund to pay for maintenance.

“I’ve used every asset I can find” that the General Assembly has made available to him, McDonnell said. He has audited VDOT four times. He has issued bonds. He has tapped the General Fund budget surplus. He has leveraged state dollars through tolled Public Private Transportation projects. Now the options are exhausted and the state needs new revenue.

McDonnell has proposed a five-point plan: (1) scrapping the motor fuels tax (except on diesel) and boosting the sales tax by 0.8%, a revenue source that will increase as the economy grows; (2) diverting 0.25% of existing sales tax revenue from the General Fund to transportation; (3) charging an extra $15 per year for vehicle registrations; and (4) charging alternative-fuel vehicles $100 per year, and (5) collecting taxes on online sales.

As people shift to more fuel-efficient automobiles and alternate-fuel vehicles, the governor said, the gasoline tax is not a viable long-term revenue source. “Relying on the state gas tax will only make the funding situation worse because the gas tax buying power has greatly depleted over the years.  Switching to the state sales tax is the reasonable and logical solution to fund projects.”

Underlining the governor’s remarks, John Lawson, chief financial officer of the Virginia Department of Transportation (VDOT) told the CTB that his five-year revenue forecast had become significantly more pessimistic over the past year. Compared to last year’s five year forecast (2013-2018), the amount of revenue available to VDOT over the next five years (2014-2019) is $766 million less. State revenue is expected to decline $218 million while federal revenue will plummet $548 million. Those numbers do not take into account added revenues from the governor’s tax plan, which, in enacted, would raise an estimated $1.8 billion over the same period.

Between direct funding reductions and a delay to bond issues, that means the state will have $700 million less to spend on new roads, bridges and highways than expected. Even previous to Lawson’s revelation, the McDonnell administration had been saying that the state would run out of state construction funding within four to five years.

Touting the sales tax component of his plan as a first for the country, McDonnell said. The sales tax “is predictable, it’s reliable and it grows.”

A wide array of business and labor groups have endorsed McDonnell’s plan, as have key Republican legislators. Democrats have been relatively quiet, although some have expressed concerns about the idea of siphoning money from the General Fund, which would come at the expense of schools, health care and other priorities. Conservatives have expressed suspicion of anything resembling a tax increase. Free-market advocates have argued that the shift away from the user-pays gas tax would subsidize driving.  And smart growth advocates have slammed the bill for that reason and others.

Before approving another $1.8 billion in spending over the next five  years, said Stewart Schwartz, executive director of the Coalition for Smarter Growth, in response to the governor’s remarks, the General Assembly should take a close look at how McDonnell is spending the $3 billion it authorized for to borrow. The U.S. 460 Connector between Suffolk and Petersburg, costing more than $1 billion in public dollars, has a very low cost-benefit ratio compared to projects going begging in other parts of the state, he said. What assurance is there, he asked, that new tax revenues won’t be similarly wasted?

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Photo courtesy of James Bacon.