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."
The state now puts about $3 million a year into rail. Giving more money would encourage projects that could help take truck traffic off busy interstates and ease congestion, Warner said.
"Without a dedicated funding source, these will remain ideas we simply talk about," he said.
Creating a loan fund for public-private partnerships "can help reduce the carrying costs" and upfront expenditures, and encourage private companies to participate in transportation projects, Warner said. Companies would be able to apply for up to $30 million in loans, which would be decided by transportation department personnel.
Warner's plan also includes money to "strengthen local partnerships." His idea is to provide money to help localities manage construction and maintenance programs for local roads, if the localities choose to do so. Warner stressed that the program would be optional for localities.
Local officials in the Fredericksburg area have said recently that they do not want road responsibility without more road money. Warner said the state would continue paying for roads managed or built by localities. He added that he's trying to provide incentives for localities to take more responsibility for those local roads. If this doesn't work, he said, the state would look at other options, like revenue sharing.
He called the proposal "a kind of sweat equity that would help transform business at VDOT" and reduce state bureaucracy.
"I think a lot of local governments would be inclined to try," Warner said.
While Warner's proposal includes money to repay cash taken from the Transportation Trust Fund over the past three years to help shore up the general fund, there's nothing in his plan to make the trust fund permanently off-limits to budget-writing legislators looking for quick cash.
Some lawmakers have suggested that a constitutional amendment protecting the trust fund from such incursions is needed.
Warner did not take a position on the idea of a constitutional amendment yesterday.
"There are various proposals floating out there, and we'll review them," he said. "I will reserve judgment on that till I see how those float forward."
Warner also did not declare support for, or opposition to, other suggestions that legislators have made in recent weeks, such as raising fines on bad drivers.
"I'm going to keep an open mind on any proposal that comes forward from the House or Senate," he said. "I hope to work in a cooperative fashion. We really want to try to work together."
To reach CHELYEN DAVIS: 804/782-9362 cdavis@freelancestar.com