Transcript Funding Transportation in the 21st Century

Funding Transportation in the
21st Century
(It’s harder to do then you think.)
Neal Menkes
Virginia Municipal League
November 29, 2007
Can we talk?
• Political Process
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“Windows of Opportunity”
Prove the need
Determine amount of resources
Who pays? How much?
Seal the deal
• Land use
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1986 Special Session
• Called to respond to Governor’s “Blue Ribbon
Commission”
• Increased taxes; provided funding for mass transit,
airports, roads, and port facilities
• Gas tax increased 2.5 cents to 17.5 cents per gallon
• Motor vehicle sales and use tax increased 1.0 percent to
3.0 percent
• Motor vehicle license fee increased by $3.00
• State sales and use tax increased by 0.5 percent to 4.5
percent
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Changes in 1986 didn’t keep up
with demand
Transportation Dollars by Fund Group
Dollars in Thousands
2,000,000
1,500,000
HMO
1,000,000
TTF
500,000
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Fiscal Years 1987 - 2007
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2004 Session
Senate passes first transportation funding
package (by either chamber) in 18 years
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SB 635 authorized an estimated $1.6 billion in new
transportation-only taxes for the 2004-2006 biennium.
• In the Senate budget:
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$949.0 million for highway construction
$347.0 million for FRAN debt service
$177.0 million for mass transit
$51.0 million for ports
$29.0 million for aviation
• The House budget included $132. 7 million in new general
fund revenue for transportation in 2004-2006
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2005 Session
Window of Opportunity is open!
• Governor introduces $824.0 million package -$373.6 million GF and $450.5 million NGF
– NGF dollars are from surplus revenues and changes to
2005 and 2006 TTF forecast
– GF dollars include $350.0 million of one-time revenue
• GF dollars to go for transit, public-private
partnership fund, local partnership fund, &
elimination of road project deficits
• New rail partnership fund created. Federal dollars
to go to maintenance for first time ($97.4 million)
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2005 Session
“Reliable & Sustainable Revenue”
• House puts together a transportation
initiative; pushes more money to NVA and
Hampton Roads (HB 2771); passes abusive
driver bill (HB 1563)
– Includes an additional $81.3 million from the
General Fund
• Senate passes resolution to put together
another Blue Ribbon Commission; cuts
$160.0 million from Governor’s proposal
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2005 Session
Compromise Crafted
• General Assembly passes $848.1 million
transportation package -- $347.6 million GF and
$500.5 million NGF
• General fund dollars: $240.0 million is one-time;
$107.6 million from dedicated of insurance taxes
attributable to car insurance premiums.
• No agreement on Blue Ribbon Commission
• No abusive driver fees
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2006 Session
Everyone agrees to disagree
• Senate creates bi-partisan START group in
2005 to identify the principles and actions
needed to create a modern transportation
system
– Introduces legislation (SB 708, SB 373, SB
374, and SB 423) to address funding, planning
and local land use issues
– $1.0 billion per year in dedicated revenue
– Includes $369.8 million of one-time GF
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2006 Session
Everyone agrees to disagree
• Governor proposes $624.5 million GF,
including $285.5 million of on-going GF
support and new transportation taxes
($850.0 million in FY 2008)
• Supports changes in planning and land use
• Overall package is similar in scope,
amounts and policy to Senate package
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2006 Session
Everyone agrees to disagree
• House $360.9 million package in FY 2008 relies
on general fund revenues and abusive driver fees
– $360.9 million from general fund sources
– $136.8 million in abusive driver fees
• House spending plan includes $64.6 million for
NVA and $47.3 million for Hampton Roads
regions to launch a transportation debt program
using 10-year notes
• Other uses of the funds include maintenance, a
local congestion relief fund, transit, FRANS debt
service, local cost sharing, and TPOF
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2006 Session
Everyone agrees to disagree
• Good News
– All parties agreed on support for new construction,
transit and local revenue sharing.
• Bad News
– No consensus on use of debt, general fund revenues,
abusive driver fees, and taxes
• In late Spring, Senate passed measures (Senate
Bills 5013, 5014, 5015, and 5016) setting up a
new statewide funding scheme and regional
funding mechanisms for NVA, Hampton Roads
and others. All these bills died in House Finance.
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2006 Session
And We End Up With
• General Assembly approves one-time
general fund appropriation of $339.0
million in state budget
– Money is contingent upon subsequent passage
of a comprehensive funding package
• Several START recommendations were
enacted.
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James Freeman Clarke: Quotes: Politics
A politician thinks of the next election - a statesman,
of the next generation.
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2007 Session
• The General Assembly approved $500.0
million from the general fund as a one-time
appropriation.
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$305.0 million to the TPOF
$65.0 million for specific rail projects
$60.0 million for transit capital projects
$50.0 million for Virginia Port projects
$20.0 million for local revenue sharing
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House Bill 3202
• HB 3202 includes a statewide and regional
funding mechanisms.
• The statewide component provides $222.4 million
in FY 2008, relying on abusive driver fees, vehicle
registration fees, liquidated damages, insurance
premium taxes, recordation taxes, and an increase
in the diesel fuel excise tax
• There is also a $3.0 billion bond package for state
projects.
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HB 3202 – Regional Plans
• The Northern Virginia and Hampton Roads
plans are similar but not identical.
– Both include vehicle rental tax, commercial real
estate tax at different rates, grantor’s tax, safety
inspection fee, initial vehicle registration fee,
sales tax on auto repairs, and regional vehicle
registration fee
– NVA has a 2% transient occupancy tax.
Hampton Roads has a 2% regional gas tax.
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