General Assembly Update
May 12, 2008
GOVERNOR ANNOUNCES NEW FUNDING PLAN FOR TRANSPORTATION
Today, the Governor announced a new transportation funding plan which he will propose to the General Assembly in a special session which will begin on June 23rd.
The plan’s major components are:
- A 1% increase in the Motor Vehicles Sales and Use Tax for highway maintenance. ($172.5 million in FY 09, growing to $212 million in FY 14)
- A $10 increase in the annual vehicle registration fund. ($70 million in FY 09, growing to $73.1 million in FY 14)
- A rededication of 1% of the existing titling tax from the transportation trust fund to the highway maintenance fund. ($172.5 million in FY 09, growing to $212 million in FY 14)
- A 1% sales and use tax increase in Northern Virginia and Hampton Roads. The Northern Virginia funds ($306 million in FY 09, growing to $414.3 million in FY 14) would be distributed as originally envisioned in HB 3202. The Hampton Roads revenues ($168 million in FY 09, growing to $227 million in FY 14) would be used for seven (the six in HB 3202 and the Hampton Roads Bridge Tunnel). The money would flow through VDOT, and the local authority created in HB 3202 would be abolished.
- A $0.25/$100 increase in the grantor’s tax to go to a new “Transportation Change Fund.“ Money from that fund would be used for transit and rail capital and operating expenses; airports, ports and the transportation partnership opportunity fund.
The plan provides $859 million in new transportation funding in FY 09 (grows to $1,085 billion in FY 14); fully funds maintenance through FY 14; provides $200-300 million more a year for highway construction because of the elimination of the maintenance drain on the construction program; utilizes revenue sources that grow every year; and, provides over $500 million a year in new funding for NOVA and Hampton Roads.