Richmond, Virginia (January 4, 2005) – Championing “sensible solutions” to help solve long-term challenges in transportation, House of Delegates Speaker William J. Howell (R-Stafford) and House Republican leaders today announced a forward-looking and fiscally responsible plan to promote trust and protect the integrity of the Transportation Trust Fund, institutionalize market-oriented reforms at the Virginia Department of Transportation (VDOT), enhance partnership opportunities between state and local governments and with the private sector, and provide $938.5 million in additional revenues for Virginia transportation in Fiscal Years 2005 and 2006. The initiative supports a stronger transportation program without higher taxes.

A key feature of the package is its creation of ongoing revenue streams for Virginia transportation. Of the $938.5 million in new, additional and sustained funding for Virginia transportation, $552 million – or 60% – is ongoing. The House Republican legislative initiative also provides at least $1.8 billion in additional resources for the Commonwealth’s Six-Year Transportation Program (FY 2005 – FY 2010). Substantial ongoing funding is targeted to support roadways, rail, mass transit and PPTA projects.

“Today, I’m pleased to announce a series of ‘sensible solutions’ to accelerate changing the status quo in Virginia transportation and to begin transforming how Virginia transportation services are delivered. State government operating as it did in the 1st Century of motorized travel is not the way to meet the pressing transportation challenges of the 21st Century,” said Speaker Howell. “Our policy initiatives are forward-looking, but also firmly grounded in the enduring Virginia values of trust, reform and responsible investment.

This package honors commitments made and keeps transportation revenues for transportation purposes. It provides more flexibility to bring private-sector solutions to address transportation projects across Virginia. It offers incentives for local governments to play a larger role in funding local infrastructure improvements that they deem vital for their communities. And it provides additional and on-going funding for transportation to help reduce congestion, enhance safety and improve mobility, a cornerstone of economic success.”

Below are highlights of the House Republican Transportation Reform package.

Restoring Trust

This initiative will help restore trust in and integrity of Virginia transportation funding policies. Ensuring transportation dollars are spent on transportation is vital. “Sensible solutions” to restore trust:

• Repay millions of dollars from prior raids of the Transportation Trust Fund.
• Protect taxpayer dollars in the Transportation Trust Fund from diversion to non-transportation uses through a Constitutional Amendment.
• Honor commitments made by dedicating one-third of insurance premiums to transportation, as promised – by law – in the Virginia Transportation Act of 2000.
• Balance the budget of the Six-Year Transportation Improvement Program by accelerating the pay off of allocation shortfalls on completed construction projects across Virginia.
• Fulfill General Assembly’s commitment to the Commonwealth Transportation Board by continuing General Fund support for FRAN debt service payments through 2013.

• Simplify and improve proposal process for public-private partnership initiatives submitted to VDOT under the Public-Private Transportation Act of 1995 to promote more private sector participation.
• Provide new incentives for local governments to play a larger role in funding local road deficiencies by increasing state financial support for local transportation projects.
• Establish “Commission on Innovative Transportation Solutions” (composed of private-sector experts in productivity enhancement and modernization strategies, state lawmakers, and local government officials) to examine and recommend additional innovative and long-term ways to transform how transportation services are delivered in Virginia well into the 21st Century.
• “With a wide range of proven transportation innovations across America and around the world, cost-saving reforms need not be some risky venture. In places as diverse as New Zealand and Texas, savings have been enormous. We need to identify and research what’s working and avoid pitfalls. This panel will help Virginia re-assert its leadership role in transportation innovation,” said Delegate Dave Albo (R-Springfield), who highlighted the “reform” portion of the House plan at the State Capitol news conference.

• Deposit $127.0 million in FY 2005 and $137.9 million in FY 2006 to transportation from the one-third of revenues generated by insurance premium tax revenues. This fulfills the commitment made in the Virginia Transportation Act of 2000, and would be on-going.
• Restore $90 million in FY 2005 to Transportation Trust Fund to repay for prior diversions. This is a one-time payment from current budget surplus revenues.
• Transfer $23.2 million in FY 2006 from the 3% share of existing vehicle rental tax to transportation to keep those dollars for transportation purposes. This would be an on-going commitment.
• Transfer $10.0 million in FY 2006 from the $2.00 fee per driver record ordered to transportation. This would be an on-going commitment.
• Produce $100.00 million in FY 2006 from a new revenues source: charging chronic traffic law offenders more through civil penalties. A serious contributor to highway congestion is accidents caused by aggressive drivers. This would be an ongoing funding source.
• Appropriate $296.8 million in FY 2006 from Non-General Fund state revenues in excess of budget forecast, and adjustments by the federal government. This is a one-time infusion of dollars.
• Appropriate additional $153.6 million in FY 2006 from Non-General Fund state transportation revenues in excess of budget forecast, and estimates of federal funding in future years.

• Invest $264.9 million in the current biennium in a new Commonwealth Transportation Investment Fund. CTB to allocated revenues among nine construction districts. Ongoing revenue stream.
• Invest $60.0 million in FY 2006 in a new Public Private Partnership Incentive Fund to jump-start PPTA projects across Virginia. This fund will encourage more private firms to partner with the state and invest their resources in PPTA projects. Ongoing revenue stream.
• Invest $75.0 million in FY 2006 through a new Local Congestion Mitigation Fund. This will increase the existing local revenue sharing fund from $15 to $50 million each year, and expand it to permit awarding of competitive grants in congested areas. Ongoing revenue stream.
• Invest $33.2 million in FY 2006 in a Rail Enhancement Fund, a new, reliable and ongoing source of financial support for freight and passenger rail. Ongoing revenue stream.
• Invest $40.4 million for Transit Capital Funding to address outstanding transit capital needs.
• Provide $256.4 million in FY 2006 by accelerating pay-down of completed highway projects in the nine construction districts, thereby freeing up funds that CTB can allocate for additional projects in the Six-Year Transportation Improvement Program.
• Provide $208.6 million in the current biennium for Additional Six-Year Program Funding.