by James A. Bacon
The Fairfax County Board of Supervisors has just voted to confirm the county’s participation in Phase 2 of the $2.7 billion Rail-to-Dulles project. (See press release.)
The county’s share of Phase 2 will be $330 million raised through a tax on Phase 2 District property owners equal to 25 cents per $100. Additionally, under the revised financial deal worked out under the auspices of U.S. Transportation Secretary Ray LaHood, the county also will make its “best efforts” to find additional funds to pay for the Route 28 station and two station parking garages.
The prepared statement did not make it clear where those funds might come from. If the county fails in its “best efforts” to locate the money — I believe but need to confirm — the burden would fall back upon drivers on the Dulles Toll Road. But a recent analysis by the Reston 2020 Committee demonstrated that higher tolls on the Dulles Toll Road would chase drivers onto other county roads, aggravating traffic congestion.
In a statement posted on her Facebook page, Bulova acknowledged the problem with toll rates. “This is something that I am working hard to address and am hopeful that funding from the General Assembly for this purpose will be forthcoming.”
However, there is considerable resistance in the General Assembly to the proposal, advanced mainly by Senate Democrats, to having the commonwealth borrow an additional $300 million (over and above $150 million in funds already allocated) to buy down the cost of the tolls.
The problem is simple: The state has tapped out its extra borrowing capacity when the General Assembly agreed to Governor Bob McDonnell’s plan to accelerate and expand the commonwealth’s transportation bond issues. The state will issue $3.4 billion in transportation-related bonds during McDonnell’s four-year term. If it issues any more debt, it threatens the state’s AAA bond rating.
Del. James L. LeMunyon, R-Chantilly, put it this way in an April 3 email he wrote to a Loudoun County official (which I was copied on later in later transmissions):
I am informed by the House Appropriations Committee (HAC) staff that the Commonwealth is already at its bonding capacity limit based on capping principal and interest payments for all state debt at 5% of general fund revenue and certain other revenue. If the $3 billion bond limit were to be increased to $3.3 billion as is proposed by the Senate, the additional bonds could not be issued without exceeding the 5% cap, unless other existing bonds were paid off. I am informed by the HAC staff that it will take at least three years for this to occur.
LeMunyon also argued that if the state had $300 million to spare, the funds would be better spent on priorities other than Dulles Rail, although he did not specify which ones.
Two major hurdles remain before Phase 2 is officially back on track. First, the new financial arrangement must be approved by the Loudoun County Board of Supervisors. And second, to release $150 million promised by the state, the McDonnell administration must set aside its objections to the Metropolitan Washington Airports Authority board’s decision to favor union Project Labor Agreements in the bidding process.
Update: Some of the information conveyed in LeMunyon’s email was inaccurate. Authorizing the $300 million for Rail-to-Dulles would not push Virginia over its 5% debt service/revenue ratio. The state currently has some $460 million in unused debt capacity, according to Anne Oman a member of the House Appropriations Committee staff. The problem is that there are insufficient transportation revenues to coved the added debt in a manner commensurate with state code.
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