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IMMEDIATE Ellen Qualls 804-786-2211 |
CO-gov-1204 Dec. 9, 2004 |
GOVERNOR WARNER PROPOSES $824 MILLION TRANSPORTATION INITIATIVE
Package continues reforms, offers new support for rail & transit, PPTAs, local control
Eighty percent of the new revenues will come from one-time funding sources: $374 million is a proposed repayment from the General Fund to the Transportation Trust Fund, and the remaining $450 million will come from additional state and federal transportation revenues that Virginia will receive in the current budget cycle.
"Today I am pleased to announce the next step in our continuing efforts to reform VDOT and strengthen transportation in Virginia," Governor Warner said. "This plan will improve the quality of our citizens' lives, ease traffic congestion, and help sustain Virginia's rebounding economy."
The following is a breakdown of how the $824 million will be invested:
End deficit financing: $256.4 million
This initiative will clean the slate from past deficit-financing practices. When the Warner administration halted the practice in 2002, accumulated transportation deficits on completed projects totaled $867 million. Deficits have been substantially reduced over the last two years, and the Governor's transportation package will eliminate the remaining $256 million in deficits on projects completed as of July 1, 2004. Legislation also will be proposed to eliminate deficit-financing practices in all future six-year programs.
"Cleaning up the books isn't just the right thing to do from some abstract, accounting point of view. By paying off debts, we hasten the day when new projects can move from the drawing board to construction to actual completion," Governor Warner said. "That is good news for families stuck in traffic, for small businesses losing time and money while their employees are delayed, and for communities trying to attract new jobs to the Commonwealth."
Transportation projects: $147 million
Governor Warner's budget will provide additional funding for projects and programs in Virginia's six-year program.
"This new revenue is the result of sustainable, long-term revenue growth, and the Commonwealth Transportation Board will use the existing transportation allocation formula to distribute these funds to ports, airports, transit providers, and highways by July 2005," Governor Warner said.
Promote public-private partnerships: $140 million
This initiative establishes a revolving loan fund to encourage private firms to invest their resources in PPTA projects. This Private Partnership Fund will support no-interest loans of up to $30 million, provided the terms are part of a comprehensive agreement under the PPTA and are no more than seven years in duration.
"This proposal will encourage more public-private partnerships to build projects quicker and with less public funding," Governor Warner said. "These venture loans will reduce carrying costs on expensive, front end items, or allow a tax district or toll facility revenue stream more time to mature."
Create rail partnerships: $23 million
This proposal will promote upgrades in Virginia's rail system, providing the first-ever dedicated revenue source of $23 million annually to improve rail. Currently there is no dedicated funding source for passenger or freight rail improvements.
Strengthen local partnerships: $80 million
This initiative will help localities manage, design, build, operate and maintain roads within their boundaries. This will ease administrative burdens, build up local road-building capacity and encourage local control of important local projects.
"This initiative recognizes that all wisdom does not reside in Richmond," Governor Warner said. "Through these local partnerships, we can reduce bureaucracy in our road-building program and bring additional projects to localities that need and want them."
Invest in transit partnerships: $80 million
This initiative increases funding for transit, allowing for more rail cars and buses. The Governor is proposing the direct funding of four major transit capital projects: Metrorail rail cars ($40 million), Virginia Railway Express rail cars ($20 million), Virginia Beach bus rapid transit ($10 million), and $10 million for statewide bus purchases.
Maintain bridges and highway: $97.4 million
This proposal provides more funding to maintain and operate Virginia's highways, bridges and neighborhood streets. With the aging transportation infrastructure and the lack of adequate funding to expand capacity for traffic, maintenance needs continue to soar.
In addition to proposing the transportation package, Governor Warner pledged that his administration will continue to work to fully restore public confidence in the integrity of the Virginia Department of Transportation (VDOT). This year, VDOT will complete 80 percent of its construction projects within budget and more than 60 percent on time - a vast improvement compared to 2001, when only 51 percent of projects were finished within budget and 20 percent on time.
VDOT is improving performance with 1,000 fewer people, avoiding $50 million in annual payroll and benefit costs. In the last two years, VDOT has reorganized its workforce, gotten its financial house and order, developed business tools to measure and manage projects and operated business in the public eye.
"Our Transportation Partnership Act of 2005 is not business-as-usual. This is changing how we do business," Governor Warner said. "These new partnerships are critical to the success of our economy and our communities, and we will continue to work to fix the longstanding problems in our transportation agencies. If we do both, we will be making a better and stronger Virginia."
Page last modified: Thursday, December 16, 2004
