Governor's Budget to Commit $500 Million in One-time Transportation Investments

Governor's Budget to Commit $500 Million in One-time Transportation Investments

- Transportation-related amendments represent nearly half of unallocated dollars -

Governor Timothy M. Kaine today unveiled the transportation amendments he will submit for consideration by the 2007 General Assembly. The Governor's amendments commit $500 million in one-time, unallocated general funds to transportation.

During his remarks to the Commonwealth Transportation Board, the Governor cautioned that this investment will not solve the Commonwealth's transportation challenges and is not a substitute for long-term, sustainable sources of revenue for transportation. He cited the continued decline of state transportation revenues, the increasing costs of transportation projects and programs, as well as several mandated and necessary programmatic changes.

"Transportation remains the most urgent priority facing the Commonwealth, and my administration continues to make strides in the accountability of our transportation agencies through better performance, more reliable planning, creative public/private partnerships and consolidation of obsolete functions and offices," said Governor Kaine. "This is a healthy year for our general fund revenues, and it makes sense to devote these one-time funds to one-time purposes. But this is an incremental step, and these revenues will not be available on a permanent basis. We must continue to work towards finding a source of long-term, sustainable revenue for our transportation needs."

Total state transportation revenue reductions for the biennium amount to $112 million. Some major mandates and other cost increases faced by transportation providers include: the continued growth in the cost of highway maintenance; the federal REAL ID program for driver licenses; increased construction costs due to spiking commodity prices; and salary increases for state employees.

The Governor identified several key priorities for the $500 million investment, targeting the one-time funds for continued private and public sector investments in port, rail, transit and highway facilities, and to improve key congestion bottlenecks:

* $305 million to support PPTA and design-build projects on the Capital Beltway (HOT lanes), the Hillsville Bypass on Route 58, the I-64/I-264 interchange, and Route 50 in Fairfax and Loudoun counties;

* $125 million to rail and transit capital investments to increase passenger rail along I-95 and take more truck traffic off of I-81, and bring new railcars to the Metro, VRE and Norfolk light rail systems, and buses to other public transit systems statewide;

* $50 million to complete the route 164 rail relocation in South Hampton Roads and to begin the planning and engineering for the Craney Island expansion, and;

* $20 million ($10 million for Hampton Roads and $10 million for Northern Virginia) to create a technology innovation grant, providing incentives for ideas that reduce congestion or increase transportation options in the most congested regions of the Commonwealth.

"Leveraging private sector technology-based transportation solutions, as Governor Kaine has proposed, is a critical step to relieve traffic congestion and to provide Northern Virginia commuters with more information, choice, predictability and safety," said Bobbie Kilberg, President of the Northern Virginia Technology Council. "Technology-based solutions will better inform commuters of real time traffic conditions and allow commuters to consider alternatives, such as telework and mass transit. Northern Virginia's technology community applauds Governor Kaine for his leadership in proposing to fund and implement this important initiative."

Governor Kaine also announced his intention to submit legislation during the 2007 session to address the need for long-term, sustainable revenues for transportation. The details of his proposal will be released early next year.

"While we are excited about advancing these critical transportation projects and programs, we should recognize that these funds will merely complete or advance some longstanding, statewide priorities," said Governor Kaine. "I remain dedicated to finding the long-term, sustainable revenue we need for transportation, and I will pursue it legislatively in the upcoming session."

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