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Statement to The House Appropriations and Senate Finance Committees Governor Warner’s proposed amendments to the 2004

Statement to The House Appropriations and Senate Finance Committees Governor Warner’s proposed amendments to the 2004-2006 State Budget Alexandria, VA -- January 6, 2005.

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Statement to The House Appropriations and Senate Finance Committees Governor Warner’s proposed amendments to the 2004

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  1. Statement to The House Appropriations and Senate Finance Committees Governor Warner’s proposed amendments to the 2004-2006 State Budget Alexandria, VA -- January 6, 2005

  2. Governor Warner’s proposed amendment to invest $824 million in Virginia’s transportation infrastructure in FY05 and FY06 and Speaker Howell’s proposal to invest $938.5 million both recognize the enormous transit funding needs identified by the Northern Virginia Transportation Commission. Thankfully our requests for immediate financial assistance have been heard. But these proposals take only one step in the right direction – for we have many more miles to travel on this road together…

  3. Public transit contributes to the economic success of the entire commonwealth, and growth of transit ridership and local transit funding efforts in Northern Virginia far outpace the remainder of the state. We are asking the General Assembly to identify stable, reliable and permanent dedicated funding sources for statewide public transit, recognizing that Northern Virginia’s economic engine is particularly dependent on the “fuel” provided by a healthy public transit network.

  4. In FY04 Northern Virginia transit systems provided an average of 428,977trips each weekday

  5. PUBLIC TRANSIT INVESTMENTS YIELD HEALTHY DIVIDENDS • The cost to accommodate current transit riders on new highway lanes would be mind-boggling and totally impractical. Metrorail has 13 times the person-moving capacity of a conventional freeway lane. • Current transit riders in Northern Virginia save 8,150 tons of pollutants in a year and 59 million gallons of motor fuel – thus reducing our dependence on foreign oil.

  6. PUBLIC TRANSIT INVESTMENTS YIELD HEALTHY DIVIDENDS • The Texas Transportation Institute found that the Washington region saves $1.2 billion annually in congestion costs as a result of its transit investments. Without transit, congestion costs would exceed $3 billion annually. • KPMG’s study for NVTC found that Metrorail creates 90,000 permanent professional jobs and yields state tax revenues in excess of state investments of $1.2 billion during the period 1995-2010 for an astounding 19.2 percent annual rate of return.

  7. “The fastest and most effective way to reduce air pollution and dependence on foreign oil is to get more people out of cars and onto trains or buses.” Brookings Institute Study "Conserving Energy and Preserving the Environment: The Role of PublicTransportation," July, 2002

  8. “Voters no longer buy the proposition that transit is a waste of money– If anything they want more of it.” Paul Weyrich “The Free Congress Commentary – The Rail Transit That Could," November 15, 2004

  9. NORTHERN VIRGINIA’S TRANSIT RIDERS AND LOCAL GOVERNMENTS FUND MORE THAN THEIR FAIR SHARE • As of FY 2004, NVTC’s jurisdictions paid $100 million annually with local and regional funds for their transit systems and local transit system revenues (fares) added $144 million. • The commonwealth paid only about $96 million for transit projects supported by NVTC in FY 2004.

  10. NORTHERN VIRGINIA’S LOCAL GOVERNMENTS AND TRANSIT RIDERS FUND MORE THAN THEIR FAIR SHARE • According to the Virginia Department of Rail and Public Transportation’s most recent estimate, Northern Virginia’s per capita payments for transit of $126 of local funds is at least four times larger than any other locality in the commonwealth.

  11. NORTHERN VIRGINIA’S LOCAL GOVERNMENTS AND TRANSIT RIDERS FUND MORE THAN THEIR FAIR SHARE • In FY 2005 NVTC expects to receive about $87 million directly from the commonwealth’s Transportation Trust Fund, but if state programs were fully funded NVTC would receive nearly $100 million more. • The statutory state transit assistance target is 95 percent of eligible net transit expenses; for FY 2005 the commonwealth will cover only about 48 percent of eligible operating costs and 38 percent of capital costs. And the outlook for our future is much worse…

  12. NORTHERN VIRGINIA’S LOCAL GOVERNMENTS AND TRANSIT RIDERS FUND MORE THAN THEIR FAIR SHARE • Since FY 2001, payments for transit in Northern Virginia using local funds have grown by 41 percent while state aid grew by only 15 percent. • But Virginia’s baby boomers, a significant portion of our residents, are getting older and in the very near future will become more and more reliant on public transit. • Who will get our mothers and fathers to the doctor, the grocery store, the pharmacy?

  13. Accelerating Transit Needs • VTRANS 2025’s middle scenario with transit ridership growing at the same rate as VMT (which doubles transit ridership by 2025) including some transit facility modernization and a limited number of new routes (e.g. Dulles phases I & II) would yield unfunded transit capital needs inVirginia of approximately $490 million annually through 2025, with unfunded operating needsof $344 million, for a total annual shortfall of $834 million.

  14. Accelerating Transit Needs • Even the enormous unfunded needs documented in VTRANS 2025 do not tell the entire story. • COG/TPB’s February, 2004 Time to Act gives project specific transit needs estimates for Northern Virginia that far exceed both the CTB’s six year program and VTRANS 2025. • This source shows unfunded capital needs of $438 million annually.

  15. This meanswe need at least an additional halfbillion dollars annually for transit in Northern Virginia just to barely maintain current market share (with corresponding clean air and mobility consequences).This is twice the level of current spending in transit in this region.Here’s how the General Assembly can help:

  16. WHAT CAN THE GENERAL ASSEMBLY DO TO HELP? • With these enormous unfunded needs, we need the General Assembly to identify and secure new stable reliable and permanent dedicated sources of state revenue for public transit. • Implementation of Governor Warner’s Transportation Partnership Act of 2005, or Speaker Howell’s Transportation Reform proposal, is only a first step. • Whichever statewide funding bill is passed in this session – and we believe something MUST be passed– it should clearly identify funding for public transit.

  17. WHAT CAN THE GENERAL ASSEMBLY DO TO HELP? • Recognize that transit is a sound investment and work withNVTC to fund this region’s top priority transit projects: • Rolling stock (Metrorail cars, VRE bi-level cars and locomotives, clean fuel buses); • Increasing available parking at Metrorail, VRE and Park & Ride lots; • Improve VRE and Metrorail stations (elevators, escalators, shelters) • Fund service enhancements including the latest technology available to systems and riders

  18. WHAT CAN THE GENERAL ASSEMBLY DO TO HELP? • Help local governments in this region to meet their immediate funding obligations by increasing NVTC’s existing two percent motor fuels tax to four percent. The proceeds are currently almost $25 million annually. • Protect revenues that have been designated for transportation by creating constitutional amendment to provide a TRUE Trust Fund.

  19. FOLLOW UP INFORMATION • NVTC’s key word searchable web-site is very useful for the public in documenting transit performance and the funding crisis. • See www.thinkoutsidethecar.org. • Selected NVTC products supporting this statement. • Annual transit performance update(current through FY 2004). • Transit funding resource guide(current through FY 2003 federal and 04 state budgets). • Questions?

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