Category: Virginia

Follow the money in Virginia’s transportation bill

Posted on by Ted Van Houten

Virginia’s complex transportation funding bill, HB2313, is headed to Governor McDonnell for his signature and potential amendments. The bill is a prime example of political sausage, seeking to satisfy Republican and Democrat, urban and rural, transit and road constituencies.


Photo by jimmywayne on Flickr.It also represents poor public policy by undermining the “user pays” principle, failing to reform VDOT spending, allocating far too little to transit in an urbanizing state, and off-loading responsibility for local roads to Northern Virginia and Hampton Roads.

Some political observers argue that the only way Northern Virginia and Hampton Roads could win rural legislators’ support for new revenues would be to place the burden on themselves. And they have, by increasing local sales taxes, recordation fees and transient occupancy (hotel) tax, and with a higher state sales tax, which derives heavily from the two regions.

Virginia’s smart growth and conservation community expressed concerns with the bill on Saturday.

While Northern Virginia and Hampton Roads will able to raise (tax themselves), keep, and allocate new transportation revenue, VDOT escapes responsibility for meeting the needs of the two most economically important parts of the Commonwealth. The bill frees VDOT to take more of the statewide sales tax revenues for highway construction outside the two regions.

Now that the bill has passed, and presuming the Governor signs it, it will be incumbent upon legislators, local elected officials and the public to watch-dog how the money is spent, starting with the next update of the state’s 6-year transportation plan, due in June. Setting the right priorities with the local money from and for Northern Virginia and Hampton Roads will be equally important.

Who voted for and against?

The 25 to 15 vote in the Senate included 17 Democrats and 8 Republicans voting yes, and 3 Democrats and 12 Republicans voting no. Northern Virginia yes votes were Senators George Barker, Charles Colgan Sr., Barbara Favola, Mark Herring, Janett Howell, Dave Marsden, Toddy Puller and Richard Saslaw, all Democrats. No votes were Democratic Senators Adam Ebbin and Chap Peterson, and Republican Senators Richard Black and Jill Holtzman Vogel.

The 60 to 40 vote in the House included 25 Democrats and 35 Republicans voting yes, and 4 Democrats and 36 Republicans voting no. Northern Virginia yes votes were Democratic Delegates Robert Brink, David Bulova, Eileen Filler-Corn, Charniele Herring, Patrick Hope, Mark Keam, Kaye Kory, Robert Krupicka, Alfonso Lopez, Kenneth Plum, James Scott, Mark Sickles, Luke Torian and Vivian Watts; and Republican Delegates David Albo, Mark Dudenhefer, Thomas Greason, James LeMunyon, Joseph May, Randall Minchew, and Thomas Rust.

Northern Virginia no votes came from Democratic Delegate Scott Surovell and Republicans Richard Anderson, Barbara Comstock, Timothy Hugo, Scott Lingamfelter, Robert Marshall, Jackson Miller, and David Ramadan.

The complete bill history can be found here.

Follow the money

The best source for tracking the new taxes and the funding allocations is the HB2313 Transportation Conference Report, but even this requires interpretation.

While the bill no longer eliminates all taxes on gasoline, it still reduces what road users will pay in daily operating costs. It eliminates the 17.5¢ retail gas tax and shifts to a wholesale sales tax on gas. This reduces user fees in 2014 by nearly one-third, and by 20% in 2018 assuming the receipts increase because of a rise in gas prices.

The bill makes up for reducing gas taxes primarily by increasing the sales tax on new car purchases, charging a $100 fee on alternative fuel vehicles like hybrids, and tapping statewide sales taxes on goods and services (but not food).

Day-to-day vehicle user costs will decline, and all taxpayers will pay more even if they drive little or not at all. Meanwhile, transit fares are likely to continue to climb in the absence of adequate state support for transit maintenance and operating costs.

VDOT is free to continue wasting money on unnecessary highway projects

The statewide portion of the bill is truly a highway bill: it directs $538 million (annually by 2018) to the highway maintenance accounts, but this will effectively free up an equal amount in highway construction funds, allowing the current administration to continue a pattern of funding rural highways with little traffic demand.

Just last week, VDOT announced it would allocate another $869 million in federal Garvee bonds to Route 460 and the Coalfields Expressway, two of the most wasteful, unnecessary projects in the history of Virginia. Four questionable projects—Route 460 ($1.4 billion), Coalfields Expressway ($2.8 billion), Charlottesville Bypass ($240 million), and the Outer Beltway in Northern Virginia (estimated $1 billion)—total a potential $5.5 billion in misallocated spending.

Many expect that Secretary Connnaughton intends to divert a substantial portion of the new statewide money to the controversial and sprawl-inducing Outer Beltway, rather than to the critical commuter corridor needs of the metro regions.

Just 21% of the statewide funds go to transit and passenger rail in 2018, although passenger rail advocates are rightly pleased that $44 million in 2014 and $56 million per year by 2018 will go to current Amtrak services for which Virginia is now responsible, and for capital investment in the passenger rail network. An existing funding source supports upgrades for freight rail.

The $84 million for public transit isn’t a lot of money when it must be shared among transit agencies across the state. The bill allocates a separate $300 million to Dulles Rail, but like some of the road money it’s coming from the existing state sales tax at the expense of General Fund needs like education and health care.

The bill fails to address the empty secondary and urban road capital accounts, unless the administration commits to use some of the freed-up road money in the Transportation Trust Fund for this purpose. Instead, the bill implicitly off-loads the cost of local roads to Northern Virginia and Hampton Roads through the local sales tax increases in those two regions. Shifting this responsibility allows VDOT to spend more money on rural highways.

Part of the future depends on a bill in Congress

Part of the bill also depends on the federal Marketplace Equity Act, a bill in Congress which would let states charge sales tax on Internet purchases. If that does not pass by January 2015, the sales tax on gas will rise another 1.7 percentage points to make up for the expected revenue from the MEA. This would bring gas taxes back to a level comparable to where they are today, if not a little higher at current per-gallon prices.

The Washington Post also reports that Senator Janet Howell (D-Fairfax) secured another provision that would kick in if the MEA does not pass. In that case, the amount of general fund revenue directed to transportation would drop from $200 million a year to $60 million a year.

More taxes rise in NoVa and Hampton Roads

The bill would raise between $300 and $350 million per year in and for Northern Virginia by 2018. It does so by increasing the sales tax in northern Virginia by 0.7 percentage points on top of the statewide 0.3 point increase, for a new total of 6%.

There’s also a 0.25% recordation tax on recorded deeds and a 3% transient occupancy (hotel) tax. The bill retains the existing local 2.1% tax on fuel. 70% of the funds will go to “regional” projects and 30% to local projects in the locality where the money is raised. The funds can go to roads or transit, and the Northern Virginia Transportation Authority will decide how to allocate the money.

For Hampton Roads, the bill would raise $219 million in 2018, using a local sales tax increase of 0.7 percentage points and a 2.1% local tax on fuel. However, the legislation directs these funds only for roads, despite the great need for transit and widespread support for light rail in the region.

Following the success of “The Tide” light rail in Norfolk, 62% of voters in Virginia Beach’s referendum last November supported extending light rail to the beach. The Navy has also expressed its strong support for extending light rail to Norfolk Naval Station.

In a final example of VDOT off-loading costs onto the two metro regions, the bill failed to allocate state funds to Hampton Roads’ Midtown/Downtown Tunnel project which local officials want. Instead, the authors of the bill say that localities should use the new regional funding sources if they want to buy down the costs of the tolls, even as VDOT diverts $1.12 billion of state and federal funds to the unnecessary Route 460 over the objections of many in the region.

Photo courtesy of jimmywayne on Flickr

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Historic Transportation Bill on its way to Virginia Governor

Posted on by Ted Van Houten

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

Posted on by Ted Van Houten

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

Posted on by acustis

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

Posted on by Ted Van Houten

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

Posted on by Ted Van Houten

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

Posted on by Ted Van Houten

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

Posted on by acustis

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.