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Virginia’s Transportation Funding Crisis Great News and Great Challenges Bob Chase Northern Virginia Transportation Alliance August 16, 2007.

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Presentation on theme: "Virginia’s Transportation Funding Crisis Great News and Great Challenges Bob Chase Northern Virginia Transportation Alliance August 16, 2007."— Presentation transcript:

1 Virginia’s Transportation Funding Crisis Great News and Great Challenges Bob Chase Northern Virginia Transportation Alliance August 16, 2007

2 Great News! New statewide resourcesNew statewide resources New regional resourcesNew regional resources Newly empowered RegionalNewly empowered RegionalAuthority New bond packageNew bond package

3 HB 3202 Statewide Sources in millions FY09 FY09 Abusive drivers fees$ 61.9 Reg. fee for cars - $10 62.4 Reg. fee for trucks - $10 + weight 27.0 Overweight truck fees 3.4 Diesel fuel equalization (1.5 cents) 20.9 Insurance premiums (1/3 of total) 137.0 Recordation tax (3 cents) 64.1 TOTAL $376.7 Plus 2/3 of General Fund surplus – est. $96

4 HB 3202 Northern Virginia Regional Sources in millions Local car rental (2%)$ 9.0 Grantor’s Tax ($40/$100) 171.0 Hotel/Motel (2%) 25.3 Auto Repair Sales Tax (5$) 33.2 Initial Vehicle Reg. Fee (1%) 64.6 Safety Inspection Fee ($10) 16.2 Reg. Reg. Fee ($10) 17.0 Subtotal$336.3 Local Option Commercial Real Estate ($.08/$100)$ 83.3 Local vehicle reg. fee ($10)$ 17.0 Commercial/Residential Impact Fees -?- Subtotal$100.3 TOTAL $436.6 million/year

5 Northern Virginia Transportation Authority Voting Members Arlington County – Chris Zimmerman (Chairman)Arlington County – Chris Zimmerman (Chairman) City of Alexandria – Bill EuileCity of Alexandria – Bill Euile City of Fairfax – Robert LedererCity of Fairfax – Robert Lederer City of Falls Church – David SnyderCity of Falls Church – David Snyder City of Manassas – Hal Parrish, IICity of Manassas – Hal Parrish, II City of Manassas Park – Bryan PolkCity of Manassas Park – Bryan Polk Fairfax – Gerry ConnollyFairfax – Gerry Connolly Loudoun County – Scott YorkLoudoun County – Scott York Prince William County – Marty Nohe (Vice Chairman)Prince William County – Marty Nohe (Vice Chairman) Virginia Senate – Jeannemarie Devolites-DavisVirginia Senate – Jeannemarie Devolites-Davis Virginia House of Delegates – Vince Callahan, Jeff FrederickVirginia House of Delegates – Vince Callahan, Jeff Frederick Governor’s Appointee (CTB) – Judy ConnallyGovernor’s Appointee (CTB) – Judy Connally Governor’s Appointee – Margaret VanderhyeGovernor’s Appointee – Margaret Vanderhye

6 Northern Virginia Transportation Authority Powers & Responsibilities Prepare long-term regional transportation planPrepare long-term regional transportation plan Construct or otherwise implement plan elementsConstruct or otherwise implement plan elements Acquire land for transportation facilities or servicesAcquire land for transportation facilities or services Provide oversight of regional programsProvide oversight of regional programs Advocate for regional needs/priorities with state and federal governmentAdvocate for regional needs/priorities with state and federal government Appoint technical advisory, planning coordination and other committeesAppoint technical advisory, planning coordination and other committees

7 Transportation Authority Bond Projects $102 Million Roads $56.9 Battlefield Pkwy (Rte 7-Kincaid)$5.0Battlefield Pkwy (Rte 7-Kincaid)$5.0 Fairfax Pkwy (Fair Lakes/Monument Int.)$29.0Fairfax Pkwy (Fair Lakes/Monument Int.)$29.0 Pacific Blvd. (Loudoun)$2.6Pacific Blvd. (Loudoun)$2.6 Prince William Pkwy. 4-6 lanes (Hoadly-Euclid)$14.9Prince William Pkwy. 4-6 lanes (Hoadly-Euclid)$14.9 Route 28 Overpass (Manassas)$2.0Route 28 Overpass (Manassas)$2.0 Other$3.7Other$3.7 Transit $37.8 Crystal City/Potomac Yard$11.5Crystal City/Potomac Yard$11.5 Route 1 Pedestrian$10.0Route 1 Pedestrian$10.0 Metro Station signage upgrades$6.1Metro Station signage upgrades$6.1 VRE locomotives$3.5VRE locomotives$3.5 WFC/Vienna Metro Platforms$3.7WFC/Vienna Metro Platforms$3.7 Huntington Escalator Canopy$2.0Huntington Escalator Canopy$2.0 Route 15 Park & Ride$1.0Route 15 Park & Ride$1.0 Multi-Modal $7.246 Wilson Blvd. pedestrian/bus shelters$2.0Wilson Blvd. pedestrian/bus shelters$2.0 Old Dom. Blvd. sidewalks, bike lanes$1.5Old Dom. Blvd. sidewalks, bike lanes$1.5 Route 123 and Eaton Place$2.5Route 123 and Eaton Place$2.5 Falls Church sidewalks$.23Falls Church sidewalks$.23 Other$1.0Other$1.0

8 Northern Virginia Transportation Authority Next Steps Hire Executive DirectorHire Executive Director Lease Office SpaceLease Office Space Prepare six-year project listPrepare six-year project list

9 Great Challenges LegalLegal FinancialFinancial ProfessionalismProfessionalism PrioritizationPrioritization Big PictureBig Picture Private Sector PersistencePrivate Sector Persistence

10 Bond Validation Suit Testing the Legality of: BondsBonds Regional taxes and feesRegional taxes and fees Application of proceedsApplication of proceeds Authority’s powersAuthority’s powers Authority debt not state or jurisdictionalAuthority debt not state or jurisdictional Overall constitutionalityOverall constitutionalityTimetable Arlington Circuit Court – August 27, 2007Arlington Circuit Court – August 27, 2007 Virginia Supreme Court – October/November 2007Virginia Supreme Court – October/November 2007 Amicus BriefAmicus Brief

11 Statewide Legal Challenge – HB 3202 Violates single object ruleViolates single object rule Illegally grants tax/fee power to unelected regional authoritiesIllegally grants tax/fee power to unelected regional authorities Revenues are state, not regional/localRevenues are state, not regional/local Impact fees violate “Takings” and “Due Process” clausesImpact fees violate “Takings” and “Due Process” clauses State cannot authorize bonds without voter approvalState cannot authorize bonds without voter approval

12 Statewide Legal Challenge – HB 3202 Excluding civil fees on out-of-state drivers violates equal protection lawExcluding civil fees on out-of-state drivers violates equal protection law Civil fees violate double jeopardy and excessive fine protectionsCivil fees violate double jeopardy and excessive fine protections Civil fees should go to Literary Fund, not transportationCivil fees should go to Literary Fund, not transportation NVTAuthority can’t issue bonds without voter approvalNVTAuthority can’t issue bonds without voter approval

13 New Statewide Funds Short of Needs HB 3202 State Bond Authorization $300 million/year Transit capital (20% min.)$60.0 Rail (4.3%) $12.9 Fed highway match/ statewide/regional projects Remainder

14 New Statewide Funds Short of Needs HB 3202 Statewide Uses FY09 FY09 Debt Service (Insurance Prem.)$137.0 Transit Operating (2 cents, rec. tax) 42.7 Highway Maintenance ($0.01 rec./other fees) 196.9 ($0.01 rec./other fees) 196.9 TOTAL$376.7

15 New Statewide Funds Short of Needs Overall Needs VTRANS 2025 Study estimates annual transportation funding shortfall atVTRANS 2025 Study estimates annual transportation funding shortfall at $2.5-$5 billion per year $2.5-$5 billion per year HB 3202 provides about $500 millionHB 3202 provides about $500 million per year

16 New Statewide Funds Short of Needs Maintenance $200 million more in new money per year for maintenance means $300 million/year still drained from TTF for maintenance$200 million more in new money per year for maintenance means $300 million/year still drained from TTF for maintenance Shortfall grows by $50 million/yearShortfall grows by $50 million/year

17 New Regional Funds Short of Needs HB 3202 provides $300-$400 million per year for Northern Virginia Northern Virginia’s annual shortfall is $700 million/year

18 Professionalism StaffingStaffing Executive DirectorExecutive Director CEOCEO Project managementProject management Technical Advisory Committee (9 members)Technical Advisory Committee (9 members) Expertise in transportation planning, finance, engineering, construction or managementExpertise in transportation planning, finance, engineering, construction or management MWAA sets standardMWAA sets standard

19 Prioritization Hampton Roads Regional Funds Third CrossingThird Crossing I-64 wideningI-64 widening Midtown TunnelMidtown Tunnel Downtown TunnelDowntown Tunnel U.S. Route 460U.S. Route 460 Southeastern ExpresswaySoutheastern Expressway

20 Northern Virginia Regional Funds Local Governments 40%Local Governments 40% Urban, Secondary RoadsUrban, Secondary Roads TransitTransit Regional Authority 60%Regional Authority 60% Debt serviceDebt service $50 million/year for WMATA$50 million/year for WMATA $25 million/year for VRE$25 million/year for VRE BalanceBalance RoadsRoads TransitTransit Proportionally distributed over long term.Proportionally distributed over long term. Prioritization

21 Northern Virginia Distribution Formula Do the Math FY09 Regional Funds$324.5 million* Less 40% local share -128.8 million* Regional Authority 60% share 195.0 million Less WMATA share -50.0 million Less VRE share -25.0 million Share for regional bond debt service and regional roads and transit in nine jurisdictions$120.0 million** *Excludes local option funds. ** Local share is larger than regional. If estimated grantor’s tax receipts are lower than expected, this amount will be reduced even more.

22 Transportation Authority Bond Projects Aberrant or Indicative? Roads $56.9 Battlefield Pkwy (Rte 7-Kincaid)$5.0Battlefield Pkwy (Rte 7-Kincaid)$5.0 Fairfax Pkwy (Fair Lakes/Monument Int.)$29.0Fairfax Pkwy (Fair Lakes/Monument Int.)$29.0 Pacific Blvd. (Loudoun)$2.6Pacific Blvd. (Loudoun)$2.6 Prince William Pkwy. 4-6 lanes (Hoadly-Euclid)$14.9Prince William Pkwy. 4-6 lanes (Hoadly-Euclid)$14.9 Route 28 Overpass (Manassas)$2.0Route 28 Overpass (Manassas)$2.0 Other$3.7Other$3.7 Transit $37.8 Crystal City/Potomac Yard$11.5Crystal City/Potomac Yard$11.5 Route 1 Pedestrian$10.0Route 1 Pedestrian$10.0 Metro Station signage upgrades$6.1Metro Station signage upgrades$6.1 VRE locomotives$3.5VRE locomotives$3.5 WFC/Vienna Metro Platforms$3.7WFC/Vienna Metro Platforms$3.7 Huntington Escalator Canopy$2.0Huntington Escalator Canopy$2.0 Route 15 Park & Ride$1.0Route 15 Park & Ride$1.0 Multi-Modal $7.246 Wilson Blvd. pedestrian/bus shelters$2.0Wilson Blvd. pedestrian/bus shelters$2.0 Old Dom. Blvd. sidewalks, bike lanes$1.5Old Dom. Blvd. sidewalks, bike lanes$1.5 Route 123 and Eaton Place$2.5Route 123 and Eaton Place$2.5 Falls Church sidewalks$.23Falls Church sidewalks$.23 Other$1.0Other$1.0

23 BIG PICTURE Who’s in Charge? Regionalism vs. parochialism?Regionalism vs. parochialism? Authority or CTB?Authority or CTB? State and regional priorities lackingState and regional priorities lacking Who’s responsible for big ticket items and Dulles Access?Who’s responsible for big ticket items and Dulles Access?

24 Private Sector Involvement “It is not the critic who counts… The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood….”  Theodore Roosevelt April 23, 1910

25 Private Sector Staying Power “This is the lesson: never give in, never give in, never, never, never, never – in nothing, great or small, large or petty – never give in except to convictions of honour and good sense.”  Winston Churchill October 29, 1941

26 What’s the Answer? Most transportation progress in the past two decades is the direct result of private sector initiative and persistence. If progress is to continue, private sector initiative and persistence must continue.


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