One-time boost for roads

Virginia's governor unveils 2005 transportation proposal, will ask legislators to provide $824 million for road, rail and transit projects.

By CHELYEN DAVIS

Date published: 12/10/2004

RICHMOND--Gov. Mark W. Warner is focusing new transportation money largely on special funds to underpin transit projects, public-private partnerships and local road initiatives.

Warner yesterday announced that his budget, which will be outlined next week, includes $824 million in new money for transportation needs. Eighty percent of the money is from one-time revenue sources--including a projected $1 billion surplus--and there is nothing in the plan to create or increase revenue sources for transportation.

"I acknowledge this proposal is not going to solve all our transportation needs," Warner said.

However, he said, his proposals are "one of the largest cash infusions in transportation in Virginia history" and are an attempt to not just pay for improvements but to change the way the state approaches transportation needs.

The proposal includes $256 million to finally finish paying off projects begun years ago; $147 million for transportation projects already in the six-year plan; $140 million for a revolving loan fund to jump-start public-private road-building partnerships; $23 million annually dedicated to rail improvements; $80 million for new rail cars and buses for transit systems, including $20 million for new Virginia Railway Express cars; and $80 million to help localities start taking control of their own road programs.

VRE President Dale Zehner said the rail line already knows how it would spend that $20 million--to buy 11 new bilevel "cab cars." Zehner said VRE recently sold several of its cars and cab cars to Connecticut, but is leasing back seven cab cars for the next two years while it buys new ones. VRE was going to use a bank loan to buy the cab cars, which cost about $2.2 million each.

"The $20 million straight up really makes it a lot easier for us. It allows us to immediately buy them," Zehner said.

Zehner was also impressed by Warner's proposal to create a new dedicated fund for rail projects.

The $23 million for rail would come from the 3 percent state tax on car rentals, which currently goes into the general fund.

"That's never been done before. Infrastructure really has to be improved on a number of lines to get more speed and more capacity," Zehner said. "This is big-time. If it was passed and it was sustained over the years, it would make a very big change over the years. It would be a very, very big contribution."

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Date published: 12/10/2004