Presentation is loading. Please wait.

Presentation is loading. Please wait.

State Transportation Dollars: Addressing Needs Or Running Out Of Gas VIRGINIA MUNICIPAL LEAGUE TRANSPORTATION POLICY COMMITTEE JULY 24, 2014.

Similar presentations


Presentation on theme: "State Transportation Dollars: Addressing Needs Or Running Out Of Gas VIRGINIA MUNICIPAL LEAGUE TRANSPORTATION POLICY COMMITTEE JULY 24, 2014."— Presentation transcript:

1 State Transportation Dollars: Addressing Needs Or Running Out Of Gas VIRGINIA MUNICIPAL LEAGUE TRANSPORTATION POLICY COMMITTEE JULY 24, 2014

2 General Assembly Passed HB 2313 With High Hopes  The Washington Post headline was typical of the reaction following the first major transportation revenue bill in 27-years.  Virginia lawmakers approve sweeping transportation plan  The conference report for the bill projected $3.5 billion over a five-year period for statewide construction and maintenance projects. An additional $1.7 billion and $1.0 billion were also projected for transportation projects in Northern Virginia and Hampton Roads, respectively.  HB 2313 dramatically overhauled the way the state will pay for roads, highways, rail and transit. 2

3 PolicyFY14FY15FY16FY17FY185-Yrs Sales Tax on Gas$412.0$470.1$482.0$493.2$501.6$2,358.9 Sales Tax on Diesel$214.3$252.9$267.6$285.3$303.1$1,323.2 Eliminate Excise Taxes on Fuels($871.1)($889.3)($907.4)($922.6)($938.2) ($4,528.6) Increase State Sales Tax to 5.3%$265.8$301.2$313.2$325.2$336.3$1,541.7 $100 Alternative Fuel Vehicle Fee$10.2$11.4$13.0$15.0$17.0$66.6 Increase Titling Tax to 4.3%$184.0$223.9$248.8$278.5$278.6$1,213.8 Transfer More Sales Tax to.675%$49.0$101.7$158.4$191.8$198.2$699.1 Marketplace Fairness Act$145.9$165.3$171.9$178.5$184.5$846.1 Statewide Totals$410.1$637.2$747.5$844.9$881.1$3,

4 Gov. McDonnell Nicks The Revenues  The governor offered amendments that clarified the bill and reduced projected revenues in the Reconvened Session following the passage of HB  Reduced Alternative Fuel Vehicle Fee from $100 annually to $64 each year, cutting $24.0 million from the 5-year total ($66.6 million to $42.6 million).  Trimmed the Titling Tax from a maximum rate of 4.3 percent to 4.15 percent, cutting $95.3 million from the 5-year total ($1,213.8 million to $1,118.5 million).  The General Assembly accepted the amendments, reducing the five-year statewide total by 3.0 percent or $119.3 million.  The Northern VA package was also reduced by $183.2 million (11%) over five-years by changing the congestion fee (grantor’s tax) from 25¢ per $100 to 15¢ per $100 and the TOT increment from 3.0 percent to 2.0 percent. 4

5 New Spending Boost for Maintenance, Construction, Transit, & Rail Fund PurposeFY14FY15FY16FY17FY18 Highway Maintenance Fund$160.1$325.1$409.5$478.8$500.2 Transportation Trust Fund$131.3$163.4$171.9$181.6$190.1 Passenger Rail Fund$44.3$50.2$52.2$54.2$56.0 Mass Transit Fund$66.5$75.4$78.4$81.4$84.1 Priority Transportation Fund$5.1$8.9$10.0$11.1$12.2 Totals$407.3$623.0$$722.0$807.1$

6 More Revenue Nibbling  In the aftermath of the 2013 Session, constituents stung several Northern Virginia legislators over the $64 annual fee on hybrid electric motor vehicles.  Bills were introduced in the 2014 Session to address these concerns. As a result, legislation (SB 127 and HB 975) was enacted to repeal the annual $64 tax.  The revenue impact, beginning in FY15 is ($6.9 million), increasing to ($10.7 million) by FY19 and beyond. 6

7 Stormy Days Ahead?  In February, VDOT reported that the state revenue forecast for FY 2014 – F 2019 would be reduced by $796.0 million.  For the same period, VDOT forecasted a reduction of $123.0 million in federal and other sources.  For the FY 2015 – FY 2020 improvement program, VDOT forecasted $491.0 million less than the previous six-year improvement program.  $55.0 million less in state and federal revenues  $436.0 million less in anticipated bond sales  The projections for the new six-year improvement program mean fewer construction dollars.  Elimination of funds for urban and secondary roads through the construction formula  Transfers from the construction budget to maintenance is projected at $724.4 million for fiscal years 2015 –

8 Transit Challenges  If Congress fails to pass the Marketplace Fairness Act by January 1, 2015, then the tax at the “rack” increases to make up the revenue loss.  However, the new increment would be used exclusively for road maintenance. DRPT expects roughly more than a $20.0 million revenue loss for transit projects.  After the state bonds for transit are exhausted, even with the HB 2313 revenues, the state match for transit capital will drop to about 10.0 percent by FY Dropping from $160.0 million in FY15 to less than $120.0 million in FY 2020 and to just over $60.0 million by FY


Download ppt "State Transportation Dollars: Addressing Needs Or Running Out Of Gas VIRGINIA MUNICIPAL LEAGUE TRANSPORTATION POLICY COMMITTEE JULY 24, 2014."

Similar presentations


Ads by Google