Transportation Legislation Overview

1. Transportation Legislation Overview Presented By: Dwight L. Farmer, P.E. Executive Director/Secretary Hampton Roads Metropolitan Planning Organization

2. Transferring money out of highway construction and into highway maintenance since 2002 Major Issue

3. Deficit Impact

4. Future of Highway Maintenance and Construction Funding

5. Virginia’s ability to match federal funds, which are essential for any • major project, is already in question. • Recently, state transportation officials delayed or dropped nearly 200 • new road projects statewide because of a $1.1 billion decline in state • revenue for the next six years, with no foreseeable way to close that • gap. • Hampton Roads needs a minimum of $375 million in new funding a • year – in addition to tolls – to address its own critical regional needs. Current Status

6. 2007 HB 3202 plan ruled unconstitutional • Governor’s plan for taxes & fees was killed in the House • Sell naming rights for highways • Audit VA DOT(it has been audited eight times in the last seven years by three organizations) • Lease and toll new roads and toll existing interstates Past Legislative Proposals

7. Senate Bill 6009 (Sen. Saslaw) • Statewide Component: • 6-cent-a-gallon increase in gas tax, phased in over six years • Increase state sales tax by ¼ % • Increase automobile titling tax by ½ % • Hampton Roads Regional Component: • Increase sales tax by one-percent • Increase wholesale fuel tax by one-percent • House Bill 6055 (Del. Hamilton) • Hampton Roads Regional Component: • $20 additional vehicle registration fee • $20 additional vehicle inspection fee • 2% vehicle rental tax 2008 Special Session Legislative Proposals

8. Statewide Component: • $3.228 billion for statewide transportation, with a ½ % cut in the sales tax on food • $583.3 million allocated to Hampton Roads regional transportation • Hampton Roads Regional Component: • $1.546 billion for Hampton Roads regional transportation Senate Bill 6009Revenue Generation FY09-15

9. Hampton Roads regional component: • $54.6 million for Hampton Roads regional transportation • The 2013 expiration makes it difficult to issue bonds to finance major • projects. • Hampton Roads localities could also impose a 10-cent increase in the • commercial real estate tax, but it’s not clear how this would finance • regional projects. • A new source of revenue would be established by using up to $250 million • in general fund revenue from growth in state taxes attributed to economic • activity generated by the port starting in 2010. • Encourage Public/Private Partnerships by require the state to issue requests for private proposals for all the major projects in Hampton Roads. House Bill 6055Revenue Generation FY09-15

10. No new source of revenue to resolve transportation financial problems were established - both SB 6009 and HB 6055 did not pass. • There will be no increase in the state's 17.5-cent-a-gallon gasoline tax, which — despite repeated efforts — has remained unchanged since 1986. • There will be no regional tax or fee increases to improve the overworked local transportation network. • There will be no big construction projects started from Williamsburg to Virginia Beach. • The cost of projects will continue to rise significantly. Inflation increases the price tag $1 million a day. General Assembly 2008 Results