Jeff Caldwell, Press Secretary
May 13, 2013
Governor McDonnell Ceremonially Signs Virginia's Historic Bi-Partisan Transportation Funding Bill
– Legislation Provides Over $3.4 Billion in Statewide Funding, $1.5 Billion for Northern Virginia, and $1 Billion for Hampton Roads Over Next 5 Years Alone –
FROM THE OFFICE OF GOVERNOR BOB MCDONNELL
Reduces Prices at the Pump While Providing Virginia's First New Dedicated, Sustainable Revenue for Transportation in 27 Years
At Signing, Governor Announces New Chmura Economics Report Finding New Spending on Construction Will Annually Sustain 13,058 Jobs and Have $9.5 Billion in Economic Impact
***McDonnell: "This may technically be transportation legislation, but at the end of the day, it's a jobs bill."***
RICHMOND - Today, surrounded by legislators and community and transportation leaders from across the Commonwealth, Governor Bob McDonnell ceremonially signed Virginia's Road to the Future (HB 2313), the state's first comprehensive transportation funding plan approved in 27 years. Following on the heels of nearly three decades of inaction on the critical challenges facing transportation funding in Virginia, this historic bi-partisan legislation supported by Republicans and Democrats from each chamber will provide more than $3.4 billion in additional statewide transportation funding, more than $1.5 billion in additional funding for Northern Virginia, and more than $1 billion in additional funding for Hampton Roads, over the next five years alone.
"For 27 years our citizens have sat in traffic as congestion has increased and our bridges and roadways have deteriorated," said Governor McDonnell. "For 27 years our citizens and businesses have demanded solutions. For 27 years, Democrats and Republicans in the General Assembly failed to reach an agreement on this critical issue. However, we stand here today, thanks to the leadership and support of Speaker Howell and a broad bi-partisan coalition of legislators, business leaders and citizens, to celebrate this historic achievement. Not only will this legislation address both the short and long-term funding needs of our transportation system, it will also annually sustain 13,058 new jobs, have more than $9.5 billion in economic impact, and improve Virginians' quality of life. Instead of sitting in traffic, our citizens will be able to spend more time with their families enjoying the many benefits this great Commonwealth has to offer. Most importantly, this legislation will ensure that Virginia's economy can grow in the years ahead, and that businesses will have the infrastructure they need to create the good-paying jobs Virginians deserve. This may technically be transportation legislation, but at the end of the day, it's a jobs bill.
"When we put forward our comprehensive transportation funding plan this year, we called for three fundamental changes to how Virginia funds transportation, all based on conservative fiscal policy. First, we called for a reduction or elimination of our dependence on an archaic, outdated gasoline tax in the decades ahead. Second, we called for tying future transportation funding to the far more sustainable sales tax. Third, we called for treating transportation like the true core function of government that it is, one essential to economic growth and job creation in our state. While the final bill was in some ways different than our original proposal, it met all three of the goals we established. The final product is the very essence of compromise in that this legislation has components some will like, and components others may dislike. That's the nature of any true compromise. Our success demonstrates that both parties - be it here in the Commonwealth or up in Washington - can still achieve a great deal when partisan differences are put to the side and we work collaboratively toward the solutions our citizens demand. This bill is crucial to the future growth of Virginia's economy, and this is a great day for job-creation in the Commonwealth."
Over the first five years, HB 2313 will:
- Generate more than $1.8 billion in additional funding for maintenance, thereby eliminating maintenance crossover transfers
- Provide $660 million in dedicated new construction funding, which, when combined with the elimination of maintenance crossover, will grow construction spending by more than $2.4 billion
- Increase funding for Virginia's transit providers by $509 million
- Provide more than $256 million in funding for intercity passenger rail, the first dedicated state funding for this vital service
- Generate additional revenue for Virginia's airports and seaports
- Generate annually between $272 million to $335 million in Northern Virginia and $172 million to $226 million in Hampton Roads for regional transportation priorities
Additionally, in his remarks, the governor today announced the findings of recently completed economic impact analyses conducted by nationally renowned firm Chmura Economics. The first analysis, which focuses on new roadway construction spending as a result of HB 2313, determined that the additional funds in the Commonwealth Transportation Board's Six-Year Improvement Program will have an economic impact of $8.1 billion and annually sustain 10,133 jobs from FY 2014 through FY 2019. The second analysis, which focuses on new transit and rail spending, determined that the additional funding provided to the Department of Rail and Public Transportation will have an economic impact of more than $1.4 billion support 14,625 jobs, or 2,925 jobs per year, between FY 2014 and FY 2018. The new dedicated intercity passenger rail funding will enable Virginia to extend passenger rail service to Roanoke within the next four years.
"This year, Republicans and Democrats put their differences aside, sat down at the table and demonstrated to our citizens that unlike Washington we are able to work together to achieve the results they demand," said Speaker of the House Bill Howell. "I applaud Governor McDonnell for his leadership and willingness to tackle the difficult challenges facing Virginia, and I thank the broad bi-partisan group of legislators and stakeholders who made today possible."
Speaking about this historic legislation, Marty Nohe, Prince William County supervisor and chairman of the Northern Virginia Transportation Authority said, "Years of inaction in the General Assembly have resulted in Northern Virginia now being ranked as part of the most congested region in the United States. No other singular issue has as great an impact on our ability to attract and retain economic development opportunities and jobs. Now, with the passage of this historic compromise, the local governments in Northern Virginia will be able to work collaboratively to address our critical regional needs so that we can remain economically competitive and improve our citizens' quality of life."
"As home to one of the largest naval installations in the U.S. and the economically crucial Port of Virginia, the Hampton Roads' region has for years struggled with our unique transportation challenges," said Hampton Mayor Molly Ward, chair of the Hampton Roads Transportation Planning Organization. "Our region's infrastructure needs are tremendous and with the inclusion of the Hampton Roads regional component, HB 2313 will finally provide us with the foundation to begin tackling these difficult challenges."
"Following on the heels of the 2011 bond package, Governor McDonnell made a promise to continue his successful efforts to address Virginia's transportation funding needs by putting in place dedicated, sustainable revenues for the long-term," said Virginia Transportation Construction Alliance Executive Vice President Jeff Southard. "This year the governor delivered. Not only will this legislation improve mobility, reduce congestion and promote further economic activity, but it will put in place the sustainability necessary to build upon and continue the progress Governor McDonnell has made over the past three years."
Following General Assembly approval of the governor's recommended amendments, HB 2313:
- Eliminates the 17.5 cents per gallon excise tax on gasoline and diesel fuel
- Replaces the motor fuels tax with a 3.5 percent sales tax on the wholesale price of gasoline and a 6 percent sales tax on the wholesale price of diesel fuel
- Increases the state and local sales and use tax from 5 percent to 5.3 percent
- Partially eliminates the 2 percent motor vehicle titling tax exemption by increasing the rate from 3 percent to 4.15 percent
- Creates a $64 Alternative Fuel Vehicle fee to ensure that all drivers are contributing to Virginia's roadways
- Levies an additional 0.7 percent local sales tax, a $0.15/$100 Grantor's Tax, and a 2 percent Transient Occupancy Tax in Planning District 8
- Levies an additional 0.7 percent local sales tax and a 2.1 percent fuel sales tax in Planning District 23
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