- Report Published -
|Interim Report of the Commission on the Future of Transportation in Virginia|
|HJR 519 (Regular Session, 1997)|
|• State agencies representing the transportation modes estimate that the needs projected by the Commission for the 20-year period 1998-2017 would cost $68.4 billion not including inflation, and $88.8 billion including inflation.|
• Federal and state revenues projected to be available will not be sufficient to finance these needs through the year 2017. The apparent revenue shortfall is $44.3 billion with costs not inflated, and $64.7 billion including inflation.
• On an annualized basis, the revenue shortfall with costs not inflated is about $2.3 billion. With costs inflated, the shortfall totals $2.3 billion in the first year and increases steadily to $4.1 billion in 2017.
• For Highways alone, needs through 2017 are projected to cost $57.8 billion, without inflation. Revenues of $20.8 billion are estimated, leaving a revenue shortfall of $37.0 billion. With inflation, needs are projected to cost $74.6 billion, and with $20.8 billion in revenues the shortfall is $53.8 billion.
• The annualized revenue shortfall for Highways is $1.9 billion with costs not inflated. With costs inflated, the shortfall in the first year is $1.9 billion and the shortfall steadily increases to $3.6 billion in 2017.
• Of the $19.5 billion in highway projects currently listed in the Six-Year Transportation Program for feasibility studies, projects totaling $5.2 billion would be funded by 201 1 with available revenues, and another $7.3 billion would be funded by 2023; however, funding would not be available from existing revenues for $7.0 billion in projects until after 2023, according to the Virginia Department of Transportation.
• The Commission should continue to review the needs list to better understand priorities and to review alternative financing mechanisms.
• Growth in maintenance costs is outstripping the growth in revenues dedicated to maintenance.
• Maintenance costs currently are projected to exceed revenues dedicated for maintenance within four years, at which time funds dedicated for construction will need to be transferred to maintenance.
• A reliable, long-term source of revenue to finance maintenance should be pursued.
• State funds dedicated by law for transportation maintenance and construction projects should not be diverted to finance other programs.
• If feasible, public transportation services should be significantly expanded and the state should play an increasingly greater role. Subject to feasibility, the Commission supports an active approach to public transit that is estimated to cost $9.5 billion (with costs inflated) over 20 years.
• A carefully thought out performance-based methodology for state assistance to public transit remains a priority for the near term.
• Needs of the Ports and Airports total $2.2 billion not including inflation and $3.2 billion with inflation. The combined revenue shortfalls for these modes is $1.1 billion without inflation, and $2.0 billion including inflation.
• The financing of major, high cost projects -- particularly rail projects -- remains a vexing issue for further analysis and study.
• Virginia should consider refinements to state transportation planning, and should explore growth management policies that reduce transportation needs.
• Needs of Virginians who cannot drive are significant and complex, and a major, well-coordinated executive branch study is required to better define the issues.