It's Time Virginia

Philip Shucet's speech to Senate Finance Committee

Philip Shucet's speech to Senate Finance Committee
March 28, 2006
By: Philip A. Shucet

Thank you for giving me the opportunity to come here today to talk a bit about transportation’s first priority in Virginia – the maintenance and care of our existing transportation system.

The requirements and costs of maintenance go far beyond just the congestion our taxpayers are suffering through in Northern Virginia and Hampton Roads. The importance of maintaining our current transportation assets reaches every corner of the Commonwealth, touching every taxpayer who has already invested in our network of roads and bridges.

The Highway Maintenance and Operating fund no longer fully pays for maintenance. Since 2002, in order to meet the mandate of the Code, it has been necessary to take money from construction and move it to maintenance. In the current Six Year Program, crossover (reaching into the construction fund for maintenance dollars) totals $1.4 billion. In the budget introduced by Governor Warner before he left office, crossover would total $2.5 billion by 2012. $2.5 billion taken from construction projects of all types across Virginia just to care for what we have now.

What began as a nibble at the construction fund is growing into a monster that will overtake and devour the transportation budget.

In the current fiscal year, the total maintenance budget sits at $1.4 billion, while construction lags at $1.1 billion. Even with the Senate’s plan, maintenance would overtake construction again in 2011. With the House’s plan, maintenance continues well above construction, with construction falling precipitously in FY07.

You have heard these numbers before:

Over 17% of our interstate pavements are deficient.

Over 17% of our primary pavements are deficient.

Over 39% of our nearly 13,000 bridges and structures that are rated are rated as deficient.

And, on top of those 13,000 there are another 7750 bridges and structures that are not part of the federal bridge system. That means that for those additional 7750, we can only use state funds to maintain them. We cannot use federal funds to repair or replace them. And, it is important to note that 20% of those 7750 are either structurally deficient or functionally obsolete.

I have recently written about the increased cost of materials for maintenance and construction between 1990 and 2005. Those numbers are dramatic, and to me tell a very clear story. But, today let’s turn away from dramatic numbers and zero in on the here and now.

The cost of asphalt rose 16% in FY05. It’s expected to rise another 13% in FY06. And the asphalt industry expects costs to rise as much as 25% before calendar year 2006 closes.

The cost of cement rose 7% in FY05.

The cost of ready mix concrete rose 8% in FY05.

The cost of the most common maintenance materials – sand, gravel and crushed stone – rose 8% in FY05.

The cost of equipment rose 4% in FY05.

The increase in asphalt costs alone in FY05 meant that we paid an additional $180 million just to do the same things we did in FY04 with our maintenance dollars.

These facts don’t represent Democrats or Republicans. They don’t hold to any philosophical or ideological causes. But they do represent real impacts to every citizen of Virginia, every taxpayer in the Commonwealth, and every voter who sent you here to do your job.

Accountability was a battle cry during my time at VDOT. One that we – the Governor, the General Assembly, and VDOT – shared jointly. Listen to what your own oversight body told you.

In 2002, JLARC recommended that VDOT place a higher priority on implementation of an asset management approach to maintenance.

VDOT did.

In 2002, the General Assembly passed legislation requiring VDOT to incorporate the principles of asset management into the maintenance program.

VDOT did.

JLARC suggested a more strategic approach to manage and maintain assets over their total life cycle.

VDOT developed such an approach.

JLARC noted that there was a $2 billion backlog of maintenance needs across Virginia, and that maintenance costs were projected to grow at a greater rate than revenue generated by the gas tax.

Now, it’s time for you to act. Time for you to develop a strategy that will sustainably fund a statewide program to care for and protect the fragile transportation system we’ve already invested in.

No one is asking the General Assembly to needlessly burden taxpayers without reason. Our transportation and mobility needs are many, and have been articulated more clearly than I could ever hope to. You know what those facts are and so do your colleagues in the House.

Virginians are waiting for all of you to do your job.