Government Affairs

General Assembly Update

March 12, 2012

Watered Down Transportation Bill Passes General Assembly

Saturday night as the General Assembly was preparing to adjourn, both houses passed a significantly watered down version of the Governor’s “Omnibus” transportation bill.

HB 1248 and SB 639, as originally introduced,  provided for the construction, maintenance, and funding of transportation by (i) creating transportation construction districts and the Transportation Improvement District Fund to identify, construct, and fund certain transportation projects, including the authority to issue revenue bonds; (ii) creating the Virginia Toll Road Authority to fund transportation projects through tolls and other charges, (iii) increasing the dedicated transportation allocation of the sales and use tax from 0.5 percent to 0.75 percent, phased in over eight years, with the additional revenue dedicated for highway maintenance and operation, (iv) increasing transportation’s share of year-end surpluses to 75 percent, (v) dedicating a portion of revenue growth each year to transportation, and (vi) requiring localities to create transportation plans as part of comprehensive planning.

The bills also authorized the Commonwealth Transportation Board (CTB) to name highways, bridges, interchanges, and other transportation facilities for private entities if an annual naming rights fee is paid, with the revenue dedicated to highway maintenance and operation. The bill also charged the CTB with greater responsibilities involving integration of land use and transportation planning and authorizes the CTB to withhold federal and state funds for certain local or regional capital improvement projects if those projects are inconsistent with the Statewide Transportation Plan or the Six-Year Improvement Program. Provision was made for use of “revenue-sharing” funds for secondary highway system maintenance projects carried out by local governments. The bill also provided for special allocations by the CTB for bridge reconstruction, high priority highway projects, and reconstruction of highways with particularly deteriorated pavements.

During the debates over the bills, the tolling authority language was stripped out, and the Senate proposed indexing the gas tax instead of appropriating a portion of the sales tax as a means of funding transportation.

In the end the conferees could only agree on a few provisions in the bill, passing a shell of what was originally proposed.

The bill passed by the General Assembly:

1.  Increases from 66% to 67% the amount of any “excess” surplus to transportation,
2.  Authorizes the Commonwealth Transportation Board (CTB) to name highways, bridges, interchanges, and other transportation facilities for private entities if an annual naming rights fee is paid, with the revenue dedicated to highway maintenance and operation,
3.  Charges the CTB with greater responsibilities involving integration of land use and transportation planning,
4.  Requires localities to create transportation plans as part of comprehensive planning,
5. Provides for special allocations by the CTB for bridge reconstruction, high priority projects and reconstruction of highways with particularly deteriorated pavements,
6. Allows the use of “revenue-sharing” funds for secondary highway system maintenance projects carried out by local governments.

Where do we go from here?  There is the possibility that the Governor could amend the bill to add more money for transportation and send it back to the General Assembly.  Also, since the General Assembly adjourned without passing a budget, there could be transportation funding involved in the compromise budget.  The General Assembly will reconvene in about 10 days to take up the budget.  Stay tuned.