VA. governor outlines multimodal agenda
Virginia Gov. Bob McDonnell last week outlined a transportation agenda for the upcoming 2011 General Assembly session designed to provide $4 billion over three years to road, rail and transit projects in the state.
Meanwhile, a new strategic plan for advancing multimodal transportation unveiled the same day places high priority on efficient freight system connectivity and infrastructure financing.
McDonnell used the same argument as the Obama administration to justify why the time is fortuitous for the commonwealth to invest in its transportation infrastructure. The state has had to slash its road maintenance and construction program since the recession because of reduced revenues and congestion has become a major problem in northern Virginia and other metropolitan areas.
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| McDonnell |
'Right now is the best time in modern Virginia history to get new roads and bridges built. First, construction prices have fallen dramatically due to competition and the state of the economy. Second, interest rates are at historic lows for our AAA bond rated state. Third, our citizens need the good jobs that will come with these projects. Fourth, we need to reduce congestion and build transportation infrastructure today. We need to get dollars out the door quickly, and road, transit and rail projects underway now. Leveraging our scarce transportation resources to make them go further is smart management,' McDonnell said at a state transportation conference in Roanoke.
McDonnell's plan, if approved, would:
' Create a Virginia Transportation Infrastructure Bank to encourage other entities to launch projects, with an initial capitalization of $400 million. Of the total, $150 million would come from the current budget surplus and $250 million from savings identified by audits throughout the government. The goal is to provide $1 billion during the remaining three years of his administration with money from future budget surpluses and other sources. The bank would provide grants and low-interest loans to localities, transportation and transit authorities and private sector partners to get projects moving that have not been funded under the state's six-year improvement plan.
' Place a constitutional amendment on the ballot to permanently protect the state's transportation fund from transfers to the general fund.
' Modify Virginia's code to authorize direct GARVEE bonds, allowing the state issue at least $1.1 billion in direct GARVEE bonds and utilize toll credits for state matches. GARVEE bonds allow investors to be repaid through the use of future federal highway funds.
' Accelerate the sale of bonds from 2007 transportation legislation to a maximum of $600 million per year, providing the ability to issue up to $1.8 billion in bonds for the next three years.
The governor noted his administration has significantly increased the number of road projects put out to bid from last year as it tries to make up for the backlog of needed maintenance and construction. And it has solicited $250 million more in road paving projects than the previous administration did in 2009.
McDonnell urged the state legislature to approve his plan, saying 'there is nothing partisan about road building,' according to excerpts of his speech.
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| Connaughton |
'In this kind of construction climate there is no acceptable reason to not get every possible resource deployed to transportation projects,' Secretary of Transportation Sean T. Connaughton said in a statement.
'We are getting deals now that would have been unheard of just a few years earlier, and the interest rates are at historic lows. This package will get projects underway, and Virginians will see the results all across the commonwealth. In particular, the Virginia Transportation Infrastructure Bank has the potential to revolutionize how projects are funded and moved forward in our state. Now, public and private sector entities will have a resource they can utilize to build projects that have previously not been funded, or underfunded. These transportation proposals are designed to speed up projects, and to maximize taxpayer dollars to the greatest extent possible. It will play a major role in driving the economic vitality of Virginia and getting our citizens back to work,' he said.
The McDonnell administration's goals set out in the strategic plan are to establish a multimodal system that drives economic opportunities in the state, sustainable funding sources such as an infrastructure bank and public private partnerships, and multimodal transportation planning across state agencies. The governor also committed the state to, improve safety, and maintain the system for maximum efficiency and minimum societal impact.
The plan, which lists intermodal business parks and airports among the types of infrastructure needed to support economic growth, identifies potential policies for state transportation agencies may implement the state's long-term transportation vision, VTrans2035. It also establishes a series of performance measures by which to annually assess the quality of the transportation system, including the number of intermodal facilities, percent of state assets in good repair and travel time reliability.
'Virginia’s multimodal transportation challenges require multimodal transportation solutions. We will strive to make better transportation decisions by looking at every alternative and by focusing available resources,” Connaughton said. “This is a major step forward in implementing true performance based budgeting in the transportation program.'
The Office of Intermodal Planning and Investment is assessing the number of freight and passenger intermodal facilities on major corridors in the state and their characteristics. The report said any shortcomings in connectivity between modes could be corrected by various means, such as:
' Incentives for rail, barge or other transportation modes.
' Increased freight rail investment.
' Encouraging competitive freight rail access.
' Making public intermodal facilities eligible for private investment.
' Prioritizing funding for projects that serve multiple modes.
The Transportation Department also plans to cross-train transportation planners in various agencies to better understand multiple modes.
Virginia's multimodal plan can be viewed here.
To read more about the state's emphasis on freight mobility see 'Virginia is for freight,' September American Shipper. ' Eric Kulisch