RELEASE: CONTACT:

IMMEDIATE Tamara Neale 804-786-6458 tamara.neale@Virginiadot.org cell 804-840-2813 ()

CO-syipfaq2 June 17, 2004

Six-Year Improvement Program 2005-2010 And FY05 Transportation Budget (FAQs)

What is the transportation budget?

The Commonwealth Transportation Board (CTB) approves a budget every year that allocates funding for roadway maintenance and construction, as well as for administrative costs and debt payments. Mass transit, airports and seaports receive part of their funding from the state transportation budget.

What is the CTB?

The CTB guides the Virginia Department of Transportation, much like a board of directors. The Secretary of Transportation serves as chairman and the Commonwealth Transportation Commissioner as vice-chairman. The 17 board members are appointed by the Governor and approved by the General Assembly. The Director of the Department of Rail and Public Transportation also serves as a non-voting member of the board. Board meetings are held most months.

How much is the budget and how does it compare to last year’s budget?

The budget for FY 2005 is $3.1 billion. Last year’s budget was $3.6 billion. Last year’s budget was larger mainly because of increased construction funds for the Woodrow Wilson Bridge project in Northern Virginia.

What are the budget trends?

The budget is expected to grow by an average of 2% a year from FY 2005 to FY 2010. Funds to pay for roadway maintenance and debt grow, while construction funds decline.

What is the Six-Year Improvement Program?

Revenues from the transportation budget go to the six-year program. The CTB allocates the anticipated funds that go toward transit, rail and interstate and primary highway construction projects that are being studied, designed and built over a six-year period.

Virginia law requires the CTB to update the six-year program by July 1 of each year. The program is subject to change each year as priorities change, schedules and costs shift, and study results are known.


How much is the six-year program and what are the program trends?

The program has been reduced by more than $1 billion from $7.4 billion in last year’s program to $6.3 billion in the updated program.

The breakdown is:
$1 billion – Public transportation
$5.3 billion – Highway construction and other transportation programs
$6.3 billion total

Why is the program reduced?

Transportation revenue sources are primarily gas taxes and user fees. Those sources have remained relatively flat. After paying for rising maintenance costs, debt, project deficits and on-going projects, there is scarce funding left to advance current projects and add new ones.


How will the program cut affect projects?

In general, VDOT is not adding new projects, with the exception of safety projects and bridge repairs. Funding is delayed for many primary, secondary and urban projects in the planning stages. Funding is not available in this program to advance many of those projects to construction. Funding remains the same for interstate projects.

VDOT will make essential bridge repairs or advance funding toward those repairs, complete construction projects under way and bring others in the planning stage to an appropriate phase. After that, there will be few major improvements left in the transportation program.

Where does the transportation money come from?

Ninety-five percent of all transportation revenues are generated primarily from motor fuel taxes and user fees at the state and federal levels. The primary state source comes from the gas tax, which is 17.50 cents a gallon.

What are the funding priorities?

Virginia law requires that before funding goes to roadway construction, it first pays for roadway maintenance, operations and administration, debt service, support to other state agencies and the general fund, other modes – mass transit, ports and aviation, and earmarks and special financing programs.

The remaining funds go to pay the state’s match on federal funds for interstate projects and other federally funded road projects. After the state match is paid, and a small percentage goes to fund improvements to unpaved roads, the rest is allocated by formula to the following systems:

· Primary system (state-maintained roads numbered 599 and below)
40% of the remaining amount is allocated among VDOT’s nine construction districts based on vehicle miles traveled and lane miles.

· Secondary system (state-maintained roads numbered 600 and above)
30% is distributed to each county based on population and land area.

· Urban system (city-maintained streets)
The remaining 30 percent is distributed to municipalities based on population.


Who selects the projects?

It is a shared responsibility among the CTB, county boards of supervisors, city and town councils and metropolitan planning organizations working with VDOT and citizens. In general, county boards of supervisors select secondary road projects and city and town councils select urban projects. Metropolitan planning organizations set transportation priorities for their regions and the CTB allocates funding for interstate projects and sets priorities for primary road improvements within each district.



Most allocations go to on-going projects because there is little funding left for new projects. Priorities are:

• Ensuring safety


• Eliminating project deficits


• Financing projects as they are built to avoid deficits


• Completing projects to an appropriate phase


• Addressing bridges


• Requiring new projects to be eligible for federal funds


• Using realistic cost estimates


• Providing congestion relief


• Improving public transportation

What are the transportation trends?

The demand for transportation services continues to outgrow the capacity and supply of resources.

Virginia’s gas tax rate is the 41st lowest in the country and has remained the same since 1986.

State State gas tax – per gallon
Virginia 17.5 cents
Maryland 23.5 cents
North Carolina 24.2 cents
West Virginia 20.5 cents
Tennessee 20 cents
National average 18.3 cents

From 1986 to 2003, state transportation revenues have lost 40 percent of their buying power as a result of inflation. At the same time:

The number of licensed drivers has grown 34 percent
The number of vehicle miles traveled has grown 79 percent
The number of registered vehicles has grown 53 percent
New lane miles have grown only 7 percent

Page last modified: Thursday, June 17, 2004