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Economic forecast and repeal of abuser fees to cost VDOT close to $1 billion dollars
With the recent downturn of the economy, many of the major funding mechanisms that put dollars into the Virginia Department of Transportation's (VDOT) funding plans have slowed significantly.
With a revenue stream largely composed of the statewide gas tax, sales tax, recordation fees, etc., VDOT has been left reeling.
The revenue forecast for VDOT's Six-Year Program shows a decrease of $387 million, and if you add to this the potential loss of the revenues from the abuser fees (which is more than $360 million) VDOT will stand to lose $750 million. In order to make up for the shortfall, VDOT will have to take money out of the construction program to fund maintenance needs and delay or eliminate projects currently in the construction program.
The regional packages could also take a major hit with the economic slowdown. With less money being generated for the new regional authorities in Northern Virginia and Hampton Roads, many of these regions' much-needed transportation projects may be delayed or eliminated.
In February, the Commonwealth will release a new economic forecast, which indicates a further slowdown in Virginia's economy. If this happens there is a potential loss of $1 billion for Virginia's transportation program over the next six years.
With HB 3202 already put in place and funding already allocated for projects and improvements, it is critical that our legislators not back out of their commitment toward finding a long-term transportation funding solution.
VBT understands that economic issues have a great deal of influence over funding, but it is imperative that the Commonwealth does not regress when addressing our transportation funding crisis.
VBT would like to encourage you to contact your local legislators to urge them to honor their commitment to the Commonwealth's transportation system.
For information about how to contact your legislator,
click here.
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Commission Report calls for immediate action regarding national transportation issues
The National Surface Transportation Policy and Revenue Study Commission unveiled its 258-page report to Congress at a January 15 Washington, D.C., press conference.
The report details the most pressing issues facing the 2009 reauthorization of the federal surface transportation program and highlights the need for immediate action regarding the nation's increasing transportation issues.
The Commission's report focuses on many of the nation's surface transportation issues including an assessment of the nation's unmet annual surface transportation needs, which fall in the range of $225 billion to $340 billion.
In order for the existing federal surface transportation program to become "performance-driven, outcome-based, generally mode-neutral and refocused to pursue objectives of genuine national interest," the Commission recommends re-working the program's existing functions.
The Commission would like to reorganize the programs to include the following:
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Rebuilding America
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Which would upgrade existing transportation facilities
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Global Competitiveness
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Which would ensure the efficient movement of freight
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Metropolitan Mobility
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Which would relieve congestion in major urban areas
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Connecting America
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Which would provide rural connectivity
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Intercity Passenger Rail
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Which would develop regional passenger rail networks
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Highway Safety
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Which would help reduce traffic fatalities
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Environmental Stewardship
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Which would mitigate transportation's impact on the natural environment
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Energy Security
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Which would promote alternative fuel development
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Federal Lands
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Which would provide public access on federal property
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Research and Development
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Which would ensure a national research program
The Commission calls for stakeholders in each of these areas to develop plans to meet certain performance objectives, which would be overseen by a new independent commission, the National Surface Transportation Commission (NASTRAC).
The Commission also outlines its short-term funding goals, which include increasing the federal motor fuels user fee annually by five to eight cents per gallon over the next five years. The Commission also endorses other financing alternatives, including congestion pricing, tolling, public-private partnerships and freight-based user fees. The report then calls out the need for states to increase their surface transportation funding levels.
Regarding the Commission's long-term funding goals, the report calls for a study to guide the transition from a fuel tax supported system to a vehicle miles tax financing mechanism by 2025. This shift would ensure that revenues would be generated proportionately with system use and irrespective of the type of vehicle or fuel used.
To read the entire report,
click here.
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Report shows transportation revenue outlook has slowed
Deputy Secretary of Transportation for the Commonwealth of Virginia, Barbara W. Reese, recently presented a report on the Commonwealth's six-year revenues and program process as well as Virginia's long-term needs assessment at a recent Senate Finance Transportation Subcommittee meeting.
Reese started off by addressing the Commonwealth's revenue outlook for the next six years, by saying the transportation revenue outlook has slowed since last year's financial plan, much like the overall economy.
According to the report, the November 2007 revenue estimate for the current and next six years is down $387 million, with most reductions coming in three areas: motor fuel tax, motor vehicle sales and use tax. However, state retail sales and use tax revenues are also expected to decline.
The report also highlights a drop in transit funding by approximately $13 million in FY 2009 and a total of $49 million during the next six years.
Reese also addressed regional improvements throughout the state including upgrades to I-81, regional transit authorities, expanded transit services, bridge condition concerns, safety concerns, HOT lanes, traffic congestion, etc.
To read the entire report,
click here.
For more information about the transportation funding crisis or Virginians for Better Transportation, call 804-237-1399 or
click here
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