“A combination of no state budget, more expensive construction materials and declining revenues from gas taxes is adding up to less money for secondary road construction and public transit in Virginia,” writes Kelly Hannon with the Free Lance-Star. “If nothing changes, just $800 million of the $6.9 billion slated for road projects would go to local governments for secondary roads. That’s a statewide decrease of $200 million from last year’s plan.”
State officials are making a big deal out of the impact of high gasoline prices on the consumption of gasoline. Fewer gallons of gasoline sold translates into lower gasoline taxes.
What state officials aren’t emphasizing, and reporters aren’t reporting, is that fewer gallons of gasoline sold also reflects the fact that Virginians are driving less. If they’re driving less, presumably the need for massive road and rail improvements isn’t quite as urgent.
Admittedly, rising energy costs creates a double whammy for the transportation budget. It also drives up the cost of construction materials, which would cut into state construction plans even if gasoline sales weren’t falling. But at some point, someone needs to begin rethinking fundamental assumptions: How long can Virginia afford to maintain a transportation policy predicated on the assumption of cheap energy? Along those lines, see our post above.
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