Well, this is certainly anti-climactic. Given the fight over ABC privatization, I would have expected the transportation debate to have gone the distance and into a special session. Guess legislators are tired of that dead horse and it looks like there is broad bipartisan support for Virginia to borrow its way to building roads.
The governor announced yesterday that a bipartisan transportation plan has been cobbled together, based largely on the suggestions he outlined in his State of the Commonwealth address. The plan is likely to pass in the House, as its chief sponsor is Speaker of the House William Howell. In the Senate, several Democrats have signed onto the plan, and many Republicans have signed on as co-sponsors, but it still doesn’t pass the 20 vote threshold.
The 17 senators publicly supporting the bill include:
Sens. William Wampler (R-Bristol), Chuck Colgan (D-Prince William), Edd Houck (D-Spotsylvania), Steve Martin (R-Chesterfield), Ryan McDougle (R-Hanover), Jeff McWaters (R-Virginia Beach), Steve Newman (R-Lynchburg), Tommy Norment (R-Williamsburg), Ralph Northam (D-Norfolk), Phillip Puckett (D-Tazewell), Roscoe Reynolds (D-Martinsville), Bill Stanley (R-Moneta), Walter Stosch (R-Glen Allen), Richard Stuart (R-Westmoreland), Jill Holtzman Vogel (R-Winchester), Frank Wagner (R-Virginia Beach), John Watkins (R-Midlothian)
Some of the details of the transportation deal include:
· Create the “Virginia Transportation Infrastructure Bank” (VTIB) to multiply transportation dollars. The bank will be initially capitalized with $150 million from the 2010 budget surplus and $250 million from VDOT audit-identified funds; The bank will reach $1 billion total during the McDonnell Administration.
· Modify Virginia Code to authorize Direct GARVEE bonds. This would allow the Commonwealth to issue up to $1.1 billion in direct GARVEE bonds and utilize toll credits for state match.
· Accelerate the sales of bonds from 2007 transportation legislation to a maximum of $600 million per year, providing ability to issue up to $1.8 billion in bonds during remainder of the Administration.
· Increase the availability of revenue sharing, specifically eliminating the $1 million cap per project and $50 million program maximum.
All told, the plan will inject $4 billion into Virginia’s transportation network over just the next three years. 900 projects have been identified that can begin construction within the next three years if the legislation is approved, including:
· Widening of I-66 for Gainesville to Haymarket as well as the installation of an active traffic management system on I-66 to dynamically control lanes in order to reduce congestion
· Widening a key section of Rolling Road in Fairfax County to address the expected traffic impacts of BRAC
· Major interchange improvements on I-64, I-81 and I-95, in Frederick, Augusta, Stafford, and Louisa counties
· Widening Route 7 in Loudoun County
· Rebuilding the Route 460 Southgate Avenue intersection in Montgomery County
· Widening Lynnhaven Parkway, Indian River Road and Witch Duck Road in Virginia Beach, as well as replacing the Lesner Bridge
· Widening Route 28 in Fairfax and Prince William counties
· Investments in Washington Metro, Hampton Roads Light Rail, and other transit providers, including VRE to extend to Spotsylvania County.
· Several major projects throughout the Route 58 Corridor, a critical link for southern and western Virginia
· Advancing PPTA projects such as the widening of Dominion Boulevard in Chesapeake; the constructing of a new tube for the Midtown Tunnel between Norfolk and Portsmouth; advancing the HOV/HOT lanes on I95/395 in Northern Virginia
**A complete list of all projects supported by this legislation can be found here: http://www.virginiadot.org/news/resources/Statewide/sectran/Combined_Master_1-13-11_V10_SOT-No_Phase.pdf
If my credit score is very good and I have a supportable debt-income ratio, I can borrow to pay for a house (provided it’s one I can afford). That’s what Virginia is going through: its AAA bond rating is not in jeopardy, it balances its budget every year, the current interest rates are currently very low (so it makes sense to borrow), and these bonds were approved in 2007.
On first glance, this looks like a good plan. We’ll see if it stands up to scrutiny.
