Bacon's Rebellion

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Transportation Construction Funds to Run Out in Five Years

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by

James A. Bacon
in

Virginia’s Incredible Shrinking Construction Budget

Virginia will run out of state money to build new roads in about five years, Transportation Secretary Sean Connaughton told the Chamber of Commerce’s newly established transportation committee Wednesday. Eroding motor fuels taxes and high maintenance costs are consuming the transportation budget. (Read the Times-Dispatch story here.)

The state’s dilemma is familiar to readers of the Bacon’s Rebellion blog. (See  “The Crossover Conundrum.”) Most of the information detailed in the T-D article has been reported here already. But writer Peter Bacque did find a few new wrinkles — most notably the astounding fact that funds for new construction will be gone in five years. I don’t remember anyone making that point at the last Commonwealth Transportation Board meeting.

The other nugget is this: The McDonnell administration, wrote Bacque, is “considering seeking additional revenue sources dedicated to maintenance.”

What revenue sources would those be? More tolls? Connaughton has already rolled out his proposal for tolls on Interstate 95. An increase in the gas tax? Connaughton gave no hint of such a thing at the September CTB meeting.

I am torn. Clearly, the fiscal situation is unsustainable. Virginia needs more money to build a transportation system capable of carrying the state through the 21st century. Trouble is, there is no system for coordinating transportation investments with land use decisions, nor is there a methodology for prioritizing projects on the basis of Return on Investment (measuring payback in terms of congestion mitigated, improved safety, economic development and environmental impact). Many Virginians believe that funding decisions are made on the basis of ideological and political considerations, not to benefit to the taxpaying public. Until trust is restored, there will be limited support for higher taxes and fees.

— JAB

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7 responses to “Transportation Construction Funds to Run Out in Five Years”

  1. TMT Avatar
    TMT

    If the system does not produce satisfactory results, why would taxpayers give the system more money? 1) Pass Jim LeMunyon’s bill and make it applicable to the entire state. 2) Eliminate the $200 million plus annual subsidy for overweight trucks. 3) Change the formula for maintenance from lane miles to traffic volume. 4) Require all contacts with the CTB or its members to be reduced to writing and posted on the Internet. 5) Transfer control of all local roads to counties, just as cities and towns have control over their local roads. 6) Pass an adequate public facilities law. 7) Abolish the NVTC. 8) Index the gas tax to changes in producer prices.

  2. larryg Avatar
    larryg

    Well, as TMT observes…Va cities and towns and Henrico and Arlington DO coordinate land-use and transportation and are better off because of it.

    and I support indexing the gas tax… and/or changing it to a percent ….

    and I support for new roads – an investor grade toll study to determine how much “need” there really is verses “demand”…..

    about 1/2 of all accidents are at intersections… use red light cameras and/or roundabouts…. for the ones that show higher than average accident rates.

    for congestion…. use congestion tolls…..

    use cordon tolls and/or congestion priced parking…

    each county should know how much it generates in gas tax.

    each county should be given the ability to hold a referenda for a local option gas tax for local roads.

  3. TMT Avatar
    TMT

    “each county should know how much it generates in gas tax’ Absolutely. It smells of corruption that this fact is not known by the citizens of Virginia or calculated by the Commonwealth.
    A local parking tax might serve as a cordon toll/congestion pricing in those locations where congestion is severe.

  4. Hydra Avatar
    Hydra

    nor is there a methodology for prioritizing projects on the basis of Return on Investment (measuring payback in terms of congestion mitigated, improved safety, economic development and environmental impact).

    And don’t forget enhanced land use.

  5. Hydra Avatar
    Hydra

    Encourage sprawl —for congestion…. use congestion tolls…..

  6. larryg Avatar
    larryg

    not sure we measure expenditures of tax dollars in terms of how it “enhances” land-owners… most folks would find that idea not so good especially if the road gets degraded in exchange for the “enhanced” land-use.

  7. Hydra Avatar
    Hydra

    most folks would find that idea not so good especially if the road gets degraded in exchange for the “enhanced” land-use.
    ==========================================
    Everything has a price and a value.

    What you are saying is the “most folks” think it is OK to keep what they think they own, at the expense of others. What I am suggesting is that there is a fair way to evaluate, but we have not tried to look for it.

    You talk about the road being degraded, but that isn’t actually what is happening. What is actually going on is that road users and owners of developed property are getting enhanced use, because of the non-use by those that have not developed yet. They are getting a free ride, and they want to keep it that way, by retroactively changing the rules which allowed THEM to develop.

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