Regional Transportation Forum September 21, 2012 Sponsors Regional - PowerPoint PPT Presentation

Regional Transportation Forum September 21, 2012

Sponsors Regional Transportation Forum

Gov. Ed Rendell Former Pennsylvania Governor & Co- chair, Building America’s Future

Transportation Funding in Virginia September 21, 2012 Sean T. Connaughton Secretary of Transportation

What We’ve Done So Far • Re-opened the 19 closed safety rest areas • Implemented to Sponsorship, Advertising and Vending Enhancement (SAVE) Program to help offset the costs of maintaining these facilities • VDOT performance audit identified over $1.4 billion in funds that have since been invested in projects and made over 50 recommendations for streamlining operations • Other audits streamlined planning and programming functions, reformed the VDOT research program, and led to the creation of OTP3 and the development new PPTA guidelines • 2011 Governor’s Transportation Funding and Reform Package • Accelerated the issuance of CPR bonds so that VDOT can issues $1.8 billion in a three year period • Authorized the issuance of $1.2 billion in federally backed GARVEE bonds • Created the Virginia Transportation Infrastructure Bank • Set the framework for investing nearly $4 billion over a three year period • Expanded the revenue sharing program to include maintenance and increased the programmatic and project funding caps • Implementing a new naming rights program – the first in the nation – to help generate new revenues for maintenance 5

What We’ve Done So Far • The Commonwealth currently has $14 billion in projects under construction or in procurement • 495 Express Lanes ($1.4 billion) and I-95 Express Lanes ($925 million) • Dulles Metrorail ($5.7 billion) • DT/MT Tunnel – MLK Extension ($2.1 billion) • Route 460 Corridor Improvements Project ($1.7 billion) • Route 58 widening ($120 million) and Coalfields Expressway ($3.8 billion) • 11 bridges along I-95 in the Richmond area • By partnering with the private sector through the PPTA, the Commonwealth’s $600 million investment will bring over $3 billion in infrastructure improvements • Once full implemented, the Governor’s transportation package will grow the Virginia economy by over $13 billion and sustain an additional 104,000 jobs • I-95 Express Lanes will contribute $1.54 billion and support more than 12,600 jobs alone • VTIB has issued $312 million in low interest loans to help advance projects such as the Dominion Boulevard in Chesapeake and the Gloucester Parkway/Pacific Boulevard extension in Loudoun • VDOT has implemented new real-time traffic information services with a greatly enhanced 511 system and electronic message signs displaying travel times. Ops Center P3 pending. • 95 Tolling Proposal 6

Commonwealth Transportation Fund Revenues Commonwealth Transportation Fund FY 2013 - 2018 Forecast Revenue Summary (amounts in millions) 2013 2014 2015 2016 2017 2018 Total State Transportation Revenues HMO $ 1,396.8 $1,441.4 $ 1,485.2 $ 1,522.2 $ 1,564.1 $ 1,592.9 $ 9,002.6 TTF net interest 930.0 964.3 1,003.5 1,042.5 1,081.1 1,111.0 6,132.4 PTF (From TTF) 161.8 167.2 173.6 182.5 190.2 199.0 1,074.3 Local and Other Revenues 505.6 361.3 426.3 377.8 397.6 374.0 2,442.6 Total 2,994.2 2,934.2 3,088.6 3,125.0 3,233.0 3,276.9 18,651.9 Federal Revenues 1,093.9 995.8 1,018.5 1,046.7 1,079.7 1,115.3 6,349.9 Total Revenues 4,088.1 3,930.0 4,107.2 4,171.7 4,312.7 4,392.2 25,001.8 Other Financing Sources GARVEE Bonds - 202.7 - 374.9 - - 577.6 Capital Improvement Bonds 600.0 300.0 75.0 100.0 75.0 100.0 1,250.0 Total 600.0 502.7 75.0 474.9 75.0 100.0 1,827.6 Total Revenues and Other Financing Sources $ 4,688.1 $4,432.7 $ 4,182.2 $ 4,646.6 $ 4,387.7 $ 4,492.2 $ 26,829.4 7

Commonwealth Transportation Fund Highway Maintenance & Operating Fund and Transportation Trust Fund Revenues Year to Date - August % Annual Growth FY 2013 % Required Revenue Estimate FY 2013 FY 2012 Change by Estimate Motor Fuel Taxes $ 851,700 $ 81,154 $ 78,356 3.6 2.2 Priority Transportation Fund (PTF) 161,800 12,599 7,024 79.4 2.9 Motor Vehicle Sales and Use Tax 576,200 109,010 99,914 9.1 (0.7) 526,300 71,672 63,019 13.7 4.6 State Sales and Use Tax Motor Vehicle License Fees 241,800 45,138 42,931 5.1 2.6 International Registration Plan 62,600 8,564 8,754 (2.2) 0.1 Recordation Tax 38,400 7,746 6,271 23.5 (1.9) Interest Earnings 17,600 19 10 90.0 25.9 Misc. Taxes, Fees and Revenues 14,800 2,246 2,194 2.4 19.8 Total State Taxes and Fees $ 2,491,200 $ 338,148 $ 308,473 9.6 2.2 Source: Commonwealth of Virginia/Department of Accounts, HMOF and TTF Revenues, Summary Statement of Selected Revenue Estimates & Collections, Fiscal Years 2013 and 2012. 8

Issues Impacting Transportation Funding • The value of the Commonwealth’s motor fuels tax is declining • 17.5 cents in 1986 dollars is currently worth approximately 8 cents • In other words, the purchasing power behind Virginia’s gas tax revenues has declined 55% • The motor fuels tax is the largest source of funding for maintenance • 14.85 cents or 85% of motor fuels tax revenues is deposited into the HMOF • At the same time, both costs and daily vehicle miles traveled are increasing • Since 2002, the binder price for asphalt has increased 350% • From 2000 through 2010, total annual daily vehicle miles traveled (DVMT) has increased from 198,156,803 in 2000 to 225,105,058 in 2010 • In other words, the total DVMT has increased by 13% • Despite these increases in DMVT, increases in CAFE standards and alternative fuel vehicles have resulted in declining revenues per vehicle miles traveled • From 2000 to 2010, revenue per vehicle mile traveled has declined 6.4% 9

Issues Impacting Transportation Funding Cummulative Percent Change of Motor Fuel Revenue and VMT 15.0% 10.0% 5.0% Axis Title 0.0% -5.0% -10.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 All VMT % change 0 -0.5% 3.6% 5.5% 8.2% 10.5% 11.6% 12.6% 12.9% 11.4% 13.0% Revenue Per VMT Percent Change 0 -0.3% -2.2% -2.3% -0.3% -2.0% -0.6% -2.7% -2.6% -3.9% -6.4% Revenue Percent Change 0 -0.8% 1.3% 3.1% 7.9% 8.3% 11.0% 9.6% 10.0% 7.0% 5.8% 10

Issues Impacting Transportation Funding • Heavy reliance of HMOF on motor fuels tax and growing VMT are key contributors to crossover • From 1986 to 2002, excess or surplus funds in the HMOF were transferred to the TTF to support construction • Since FY 2002, $3.02 billion in TTF construction funds have been transferred to the HMOF to support maintenance • In FY 2002, the first transfer was $3.6 million • From FY 2008 – FY 2012, crossover transfers have averaged $418 million • Transfers of state funds from the TTF to the HMOF for FY 2011 and 2012 have totaled $959 million • FY ‘13 crossover is $364 million • Federal funds have also been used since 2006 to support the highway maintenance program • Without additional funding, crossover transfers will grow to over $500 million by FY 2019 11

Dwight Farmer Executive Director, Hampton Roads Planning District Commission / Transportation Planning Organization

Legislative Panel Sen. John Watkins (R) Sen. George Barker (D) Del. John O’Bannon (R)