Future of Highway Maintenance and Construction Funding 4
Current Status 5 Virginia’s ability to match federal funds, which are essential for any major project, is already in question. Recently, state transportation officials delayed or dropped nearly 200 new road projects statewide because of a $1.1 billion decline in state revenue for the next six years, with no foreseeable way to close that gap. Hampton Roads needs a minimum of $375 million in new funding a year – in addition to tolls – to address its own critical regional needs.
Past Legislative Proposals HB 3202 plan ruled unconstitutional Governor’s plan for taxes & fees was killed in the House Sell naming rights for highways Audit VA DOT (it has been audited eight times in the last seven years by three organizations) Lease and toll new roads and toll existing interstates
2008 Special Session Legislative Proposals 7 Senate Bill 6009 (Sen. Saslaw) Statewide Component: 6-cent-a-gallon increase in gas tax, phased in over six years Increase state sales tax by ¼ % Increase automobile titling tax by ½ % Hampton Roads Regional Component: Increase sales tax by one-percent Increase wholesale fuel tax by one-percent House Bill 6055 (Del. Hamilton) Hampton Roads Regional Component: $20 additional vehicle registration fee $20 additional vehicle inspection fee 2% vehicle rental tax
Senate Bill 6009 Revenue Generation FY Statewide Component: $3.228 billion for statewide transportation, with a ½ % cut in the sales tax on food $583.3 million allocated to Hampton Roads regional transportation Hampton Roads Regional Component: $1.546 billion for Hampton Roads regional transportation
House Bill 6055 Revenue Generation FY Hampton Roads regional component: $54.6 million for Hampton Roads regional transportation The 2013 expiration makes it difficult to issue bonds to finance major projects. Hampton Roads localities could also impose a 10-cent increase in the commercial real estate tax, but it’s not clear how this would finance regional projects. A new source of revenue would be established by using up to $250 million in general fund revenue from growth in state taxes attributed to economic activity generated by the port starting in Encourage Public/Private Partnerships by require the state to issue requests for private proposals for all the major projects in Hampton Roads.
General Assembly 2008 Results 10 No new source of revenue to resolve transportation financial problems were established - both SB 6009 and HB 6055 did not pass. There will be no increase in the state's 17.5-cent-a-gallon gasoline tax, which — despite repeated efforts — has remained unchanged since There will be no regional tax or fee increases to improve the overworked local transportation network. There will be no big construction projects started from Williamsburg to Virginia Beach. The cost of projects will continue to rise significantly. Inflation increases the price tag $1 million a day.