Transportation Funding and Policy Overview

1. Transportation Funding and Policy Overview Tracy Baynard and Christopher D. LloydLeadership Arlington 2011February 7, 2011

2. Presentation Overview • How is Transportation Funded in Virginia • Transportation Policy Decision Making • Transportation and the 2011 Session • Arlington and Transportation

3. Transportation Basics • Roads are classified by type – Interstate, primary, secondary, or urban • Transit covers bus, light rail, and heavy rail activities • Virginia is divided into 9 “districts” through which money is allocated • There is no one person in charge – many stakeholders in funding and policy decision

4. Transportation Funding – FY 2011 • State Motor Fuels Taxes (17.50 cents per gallon) • - HMOF 14.85 cents $726.8 million • -TTF 2.50 cents $114.5 million • - DMV 0.15 cents • Every 1 cent generates $48 million in revenue • Motor Vehicle Sales and Use Tax (3 percent) • - HMOF 2 percent $272.7 million • - TTF 1 percent $149.3 million • Every 1 percent generates $141 million in revenue

5. Transportation Funding – FY 2011 • Motor Vehicle License Fee ($40.75) • - HMOF $26.00 $221.3 million • - TTF $ 3.00 $ 21.2 million • - DMV $ 4.00 • - State Dept. of Health/Police/ • Localities/Rescue Squad/ • General Fund $ 7.75 million • Every 1 dollar generates $8.4 million in revenue • State General Retail Sales and Use Tax (5 percent) • - TTF 0.5 percent $488.6 4 million

6. Transportation Funding • Federal funding provides another $1 billion per year • Total VDOT/DRPT annual funding of nearly $4 billion • Maintenance is the first “claim” on transportation funding • Entering 2011, maintenance and operations were consuming nearly all available funding • HB 3202 (2007) authorized $3 billion of bonds for transportation – only $492 million issued to date • Regional transportation funding initiatives have failed (2002) or ruled unconstitutional (2008)

7. Transportation Policy Decision Making • Interplay among federal, state, regional, and county governments • Federal government provides funding, sets design standards, and regulates environmental reviews for “federalized” projects • State government provides funding, lets construction contracts, inspects, and maintains • Regional governments assist with planning, funding for transit projects • Local governments provide construction, planning and maintenance services

8. Transportation Policy Decision Making • In 1932, Virginia took control of county roads, but Arlington and Henrico opted out • Cities construct and maintain their own roads • Location and funding decisions driven by VDOT and Commonwealth Transportation Board • VDOT Central Office and northern Virginia office have significant role in administering maintenance and construction

9. Transportation and the 2011 Session • VDOT audit uncovers $1.5 billion of money • Governor proposes accelerating HB 3202 bonds • Create Virginia Transportation Infrastructure Bank • Increased emphasis on public private partnerships • Shift money into actual construction • 900 “illustrative” project list developed by VDOT • House and Senate have endorsed similar, yet competing versions of Governor’s proposal

10. Why Does This Matter to Arlington? • 95/395 HOT Lanes controversy has Richmond impact • VDOT approvals and funding important to Columbia Pike street car project • I-66 widening (both inside and outside Beltway) • Metro/WMATA funding and Virginia representation • Integration of transportation and land use planning

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