Today, twenty-six business associations across the Commonwealth came out in support of Governor Bob McDonnell’s transportation funding plan. These associations, some representing the construction industry and six Chambers of Commerce, released a joint press release praised McDonnell’s plan saying that it can add “much needed capacity to Virginia’s transportation network, put more people to work, and improve our economy.”
The release also acknowledged how the Governor’s plan will utilize existing revenues to fund the proposed Virginia Transportation Infrastructure Bank and the use of bonds will address the transportation infrastructure needs.
The infusion of dependable, dedicated transportation funds is critical to putting Virginia’s transportation program on a sound financial footing and ensuring sustained economic growth.
Virginia Governor Bob McDonnell has proposed investing $4 billion to accelerate road, transit and rail projects in the Commonwealth over the next three years.
Fully implemented and prudently invested, the Governor’s proposals can add much needed capacity to Virginia’s transportation network, put more people to work and improve our economy.
We believe that creative use of existing revenues to capitalize the proposed Virginia Transportation Infrastructure Bank and the prudent use of bonds will help address the Commonwealth’s chronic transportation infrastructure needs.
Using bonds, in this limited manner, will allow the Commonwealth to leverage and make some of its scarce transportation resources go further. All bonds proposed will use debt allocations already authorized under current Virginia law. The bond packages will be serviced by current existing revenue streams. The use of toll credits will leverage these dollars and will free-up state revenues that will fund new projects. This is smart management and the prudent use of existing revenues.
Still, Virginia’s aging infrastructure requires at least $1 billion a year in new, recurring revenues. Governor McDonnell has stated he understands that his initiative is a short-term infusion of funds into a system that over the long-term requires new dedicated and sustainable revenues. On December 17, 2010 the Governor told the General Assembly money committees that “I’ve talked a little about bipartisan successes in economic development and budgeting; well transportation funding is a bipartisan failure.” We agree.
The Commonwealth must invest additional funds into its transportation system. We appreciate Governor McDonnell’s proposals to jump-start a number of critical transportation projects that will put many Virginians back to work as well as his ongoing commitment to secure a long-term funding solution for the Commonwealth. We look forward to continuing to work with and help him fulfill that commitment to the citizens of the Commonwealth.