WE HAVE A DEAL! (UPDATE!!!!)

Just got this in: Commonwealth of Virginia General Assembly RICHMOND FOR IMMEDIATE RELEASE: January 18, 2007 Contact: G. Paul Nardo (804) 698-1228 Tom Cosgrove (804) 698-7603 Republicans Announce Compromise Transportation Plan -- Proposal Includes New Measures to Combat Sprawl in Fastest Growing Areas -- -- Reforms to Streamline and Modernize VDOT Featured in Plan – -- Transportation Funding to Receive $2 Billion Infusion from Statewide Bonding Initiative -- Richmond, Thursday 18 January 2007 – Senior Republican lawmakers today announcing a comprehensive transportation plan that would give Virginia’s fastest-growing localities more authority to combat sprawl and traffic congestion, enact significant reforms to the state’s delivery of transportation services, and inject over $2 billion into the Commonwealth’s network of roads, railways, and public transit. The legislation is the result of a compromise worked out between senior Republican Senators and Delegates. In an effort to build consensus for the passage of a comprehensive transportation plan, Senators Thomas K. Norment, Jr. (R-James City), Frederick M. Quayle (R-Chesapeake), Walter A. Stosch (R-Henrico), Kenneth W. Stolle (R-Virginia Beach), Martin E. Williams (R-Newport News) and Delegates David B. Albo (R-Fairfax), M. Kirkland Cox (R-Colonial Heights), H. Morgan Griffith (R-Salem), and Terry G. Kilgore (R-Scott) conducted discussions to construct this proposal, garnering detailed input from a wide variety of legislators in both chambers. The measures to manage growth and control sprawl contained in the comprehensive package represent a clear, definitive break from Virginia’s current land use policies. For the fast-growing areas in Northern Virginia, the plan represents a long-overdue modernization of the Commonwealth’s approach to local planning and road building, which dates all the way back to the Byrd Road Act of 1932. Legislation would devolve greater authority and control over roads within their boundaries to fast-growing local governments that participate in an optional program, while providing a stable revenue stream, authority to assess impact fees, and the ability to deny zoning requests based on their transportation impact. Additional elements would increase the tools available to sensibly manage rapid residential growth through Urban Development Areas, which incorporate best practices to focus growth in a limited area, as well as restructure the responsibility of maintenance of local subdivision roads. “This new option for localities to better manage growth and control sprawl and its effects on transportation – for the first time directly tying land use and transportation,” noted Delegate Cox. “These fundamental reforms will transform the Commonwealth’s current structure of control for local road maintenance, creating a more cooperative partnership between the Commonwealth and its localities.” Noting the affect of land use policies on transportation, Senator Quayle stated, “Land use reform alone cannot solve our transportation problems, but it can help us prevent future problems. This plan is a welcome course correction to our efforts to manage growth wisely.” The innovative and common-sense reform measures featured in the plan are designed to continue reforming the Virginia Department of Transportation (VDOT), increasing the agency’s efficiency and effectiveness as a 21st Century transportation agency. The main components of this portion of the package include the establishment of congestion-reducing performance measurements, greater use of private-sector partnerships, and increased accountability, transparency in spending, and efficiency at VDOT. Additional provisions would streamline the current onerous permitting process, update Virginia’s road classification system, and employ state-of-the-art technology to facilitate free flow of commuters and commerce through toll facilities. This multi-faceted approach will accelerate the process of improving Virginia’s network of roads, railways, and mass transit, achieving measurable and substantial results for Virginia’s commuters and taxpayers. “Virginia has been recognized as the Best Managed State in the nation,” Senator Williams noted. “This package of legislation holds our transportation system to the same high standard. As we invest more in transportation, taxpayers deserve to know their money is being spent wisely and efficiently. The legislation will provide that sense of confidence.” “Transforming the way we deliver transportation services is essential to ensuring Virginia is a transportation leader,” remarked Delegate Griffith. “By instituting essential, quantifiable performance measures, adding much-needed oversight, transparency, and accountability, and providing increased opportunities for public-private partnerships in developing long-term solutions, we can reform, streamline and modernize the VDOT, thereby improving not only the performance of this core government service, but also the overall quality of life for all Virginians.” By incorporating dedicated, sustainable revenue sources and employing Virginia’s AAA bond rating, the plan includes $2 billion in additional transportation funding statewide. The combination of reliable revenue sources and general obligation bonds will solidify continued funding for Virginia’s transportation network and jump start critical projects throughout the state. The plan’s ongoing, sustainable streams come from both the reallocation of ongoing resources and targeted fee increases for those using and abusing our transportation system. In addition, the plan allocates $339 million from the 2006 transportation reserve fund, dedicates 50% of the current budget surplus, $227 million, and reserves a minimum, specific dollar amount of future budget surpluses. The use of Virginia’s AAA bond rating will allow critical projects to be completed faster and at a lower cost to taxpayers. “This tentative agreement reflects my desire that a modest, appropriate amount of existing general funds goes toward transportation,” noted Senator Stosch, who has already submitted legislation to reserve a minimum of 50% of all future net budgetary surplus revenues for transportation. “A conservative use of bonding will keep Virginia ahead of the curve of rising road construction costs,” stated Delegate Kilgore. “These bonds offer a reasonable funding approach that provides the necessary resources to reduce congestion, improve safety, and ensure the free flow of commerce throughout the Commonwealth.” With Northern Virginia and Hampton Roads facing the most acute traffic challenges of the Commonwealth’s regions, the plan allows local governments in those areas, by an affirmative vote of their governing body, the added flexibility of raising and retaining additional revenues for critical local road, rail and transit projects. If every eligible locality in the respective regions opted to participate in the plan, Northern Virginia would garner an additional $383 million in additional transportation funding annually, while Hampton Roads would receive $209 million. “This gives Northern Virginians the right to raise and keep the funding we need to reduce congestion and get us out of traffic,” noted Delegate Albo. “The flexibility afforded our localities in this plan allows us to solve those important quality of life issues for ourselves.” “The geography of Hampton Roads is a blessing to our economy and a curse to our transportation network if we don’t do something dramatic about it,” said Senator Stolle. “Our needs are unique and this legislation recognizes that. With its passage our destiny would then be in our own hands and not at the mercy of others.” “This plan represents the best opportunity we’ve seen over the last year to enact a comprehensive package to control sprawl, reform VDOT, and jumpstart critical projects,” noted House Speaker William J. Howell (R-Stafford). “The elected officials involved – senators, delegates, the Attorney General, and others – have invested their time, applied their expertise, and exercised much patience to build the consensus necessary to produce this compromise solution.” “This plan addresses our immediate and long-term transportation challenges, includes statewide and regional approaches, and makes good use of all the tools available to us,” concluded Senator Norment. “As citizens learn about its benefits, I am hopeful that every Virginian will support it. It also demonstrates just how much can be accomplished for those we serve when our energies are focused on finding common ground.” # # # 2007 General Assembly Session Republican Transportation Plan -- Linking Growth and Transportation Infrastructure -- Sprawl has had an increasingly burdensome impact on the quality of life for all Virginians, especially those in urban and suburban areas. Ensuring that state government and localities work together, properly plan to handle growth, and employ the latest and most constructive tools in development design will go a long way toward better serving families, businesses and commuters throughout Virginia. Urban Development Areas: To curtail sprawl, limit traffic congestion and plan better, counties would be required – and towns and cities would be permitted – to create “Urban Development Areas” in their Comprehensive Plans. Urban Transportation Service Districts: To improve the relationship between state and local governments which will pay dividends over time, fast-growing ones, Northern Virginia counties would be given the opportunity to accept responsibility for the maintenance of all or a portion of their existing secondary road system, create new “Urban Transportation Service Districts,” and allow an impact fee to be charged for road maintenance. Local Subdivision Roads: To address skyrocketing maintenance costs (which are consuming dollars that otherwise would be spent on new construction), VDOT would be required to define a “local subdivision road” and a “local collector road,” and would be prohibited from accepting for maintenance purposes any new “subdivision roads” into the Commonwealth’s statewide system. -- New Transportation Funding -- Recurring New Transportation Revenues Total: $500 Million Increase General Fund Investment ü $250 Million Implement Abusive Driver Penalties ü $61 Million Equalize Diesel Fuel Tax ü $20 Million Increase Overweight Trucks Penalties and Heavy Truck Registration ü $30 Million Increase in Vehicle Registration Fee ($10) ü $71 Million Dedicate 50% of Surplus ü 2008: $227 Million, ü Ongoing: $64 Million Non-Recurring New Transportation Revenues Total: $339 Million Dedicate 2006 Budget Residual ü $339 Million Bonds for Statewide Major Projects Total: $2.0 Billion Immediate New Bond Issue (2008-2012) ü $1.3 Billion Future New Bond Issue (Begin 2012) ü $700 Million Dedicate 1/3 Insur. Premium Tax to FRAN Debt Service ü $134 Million Regional Transportation Authorities Total Northern Virginia ü $383 Million Hampton Roads ü $209 Million -- VDOT Reforms -- Statewide Transportation Performance Measures to Relieve Highway Congestion: Provides that quantifiable and achievable goals relating to congestion reduction and safety, as well as other important performance measures, be instituted and considered by VDOT/ CTB in project selection. Ensure Competitively Bid Any and All of VDOT’s Functions: Require VDOT to take steps as may be appropriate to outsource or privatize the Department’s functions while allowing departmental employees to bid to continue any specific function or functions that might reasonably be provided Streamline State Environmental Review Process: Require that state agencies’ comments on highway construction projects be completed and submitted to the Secretaries of Transportation and Natural Resources within 15 days. Require Tolls operated by VDOT be Fully Automated Electronically: Require Virginia toll facilities to become capable of fully automated electronic operation, employing innovative technologies and procedures to reduce traffic delays. VDOT to Reconsider and Reassign Road Classification: Require VDOT to reconsider and reassign the various highways, bridges, and other facilities comprising the state primary, secondary, and urban highway systems based on their functionality. General Assembly Selection of Certain Commonwealth Transportation Board Members: Provide for the election of non-at-large representatives of Commonwealth Transportation Board (CTB) by the General Assembly, providing necessary oversight and responsiveness. The power to hire the VDO Commissioner, promoting better continuity and performance in that role, would remain the responsibility of the CTB. - END -

DCPost:

The plan would shift $250 million from other state programs, raise fees on drivers, increase costs for truckers and depend on billions in borrowing, according to a draft of the plan.

Under the plan, taxes on diesel fuel would rise, and fees to register heavy trucks would increase by $10. Renewing a driver's license would cost an extra $15 every five years, and drivers with very bad records would pay higher fines. All of that would raise about $191 million to pay for recurring road costs.

The plan also envisions dedicating half of future budget surpluses to transportation projects and diverting $250 million from other state programs starting in 2008. The state would also borrow $1.3 billion in 2008, and an additional $700 million in 2012, and repay the debt with money raised from the plan.

In addition, other taxes and fees would increase, raising $345 million for Northern Virginia and $212 million for Hampton Roads each year. The Northern Virginia plan is likely to include a new fee when buying a car, and higher taxes on commercial real estate and lodging, legislators said.

The plan is not likely to specify that road projects would be funded with the additional money. But transportation experts said the GOP plan would finally allow the congested region to pay for many of the road expansions, new highways and expanded Metro and train service that planners have long wistfully envisioned.

There should be more later.

Comments

[brimur]

It's hard to get a good handle on exactly the breakdown of the financing under this plan. I will try to be cautiously optimistic but I'm concerned about a plan that seems to get most, (or all if the economy tanks) of its revenue from heaping on debt to the state and, second, from cutting significant unnamed services. If our projected surpluses do not come to pass as large as imagined what does this mean for the revenue stabilization fund or otherwise what does this mean for other core services?

I would love to see the whole plan. Thanks for the reporting.

[James Atticus Bowden]

Read it all and see if it includes regional governments.

[brimur]

"The Republican transportation package would not pay for all of those projects, officials said. But by leveraging the money to borrow more, they said Northern Virginia would finally have a realistic hope of making many of the projects a reality in the next decade."

This sounds iffy too.

[brimur]

I misspoke a little bit. There are obviously some increases in revenues which will account for paying off the new debt. But it appears that no general revenue increases will contribute toward transportation improvements- they will only go toward "recurring road costs". The regional taxes will only "allow" for the funding of transportation improvements. There is apparently nothing in the bill to actually DEDICATE the new taxes and fees to transportation. Are we really going further down the road (no pun intended) of increasing the horrible NoVA disparity without any guarantees that these new burdens will be reserved for NoVA's benefit? Someone tell me I'm not understanding this correctly.

[novamiddleman]

Just wait for it all to come out

This is what compromise is about folks

Maybe the middle can claim a victory :)

[Chris]

Hey, I'm all for this right now, middleman. I think people in NOVA are too fed up to even care who is Republican and who is Democrat. This is the best we can get. Pressure now turns to Kaine and the Donkeys.

[brimur]

Chris- any chance you can clean up that copy of the release- particularly the funding details section. It's really difficult to read.

[brimur]

New Transportation Funding
Recurring New Transportation Revenues Total: $500M
Increase General Fund Investment - $250M
Implement Abusive Driver Penalties - $61M
Equalize Diesel Fuel Tax - $20M
Increase Overweight Trucks Penalties and Heavy Truck Registration - $30M
Increase in Vehicle Registration Fee ($10) - $71M
Dedicate 50% of Surplus 2008: $227M
Ongoing: $64M

Non-Recurring New Transportation Revenues Total: $339M
Dedicate 2006 Budget Residual - $339M

Bonds Total: $2B
New Bond Issue (2008-2012) - $1.3B
Future New Bond Issue (Begin 2012) - $700M

Dedicate 1/3 Insurance Premium Tax to FRAN Debt Service - $134M
Regional Transportation Authorities Total
Northern Virginia - $383M
Hampton Roads - $209M

Alright that's what I got deciphered. So can someone explain to me what the dedicated insurance premium tax money for debt service is currently being used for? Is it currently in the general fund? Is that included in the general fund investment of 250 million?

And what is the definition of surplus? Is it any money beyond the current budget? Or is any money beyond the amount necessary to maintain the government as it currently exists? Because with inflation and other cost issues a rigid rule dedicating speculative revenues into the future seems likely to squeeze other government services.