The Jefferson Journal

Michael W. Thompson



How to Fund Transportation without Really Trying

These six strategies will stretch Virginia transportation dollars by billions of dollars -- and put off the need for tax increases for years.


 

The General Assembly is locked in another fight over taxes and fees. This time is it centered on transportation. I am not blind to the need for taxes, but I believe that increases in taxes and fees should be at the bottom of the list for funding options. There ought to be other ways to find the necessary funding to confront our transportation problem.

 

Here are some suggestions for our elected leaders to consider:   

 

First, the state’s private road maintenance contract should be expanded from the current 250 miles, which has saved more than $20 million over four years according to a Virginia Tech study. Delegate Leo Wardrup, R-Virginia Beach, has introduced legislation to expand these contracts to all 1,118 miles of Interstate highway.

 

Further, there is no reason not to expand these private contracts to include the additional 8,074 miles of the state’s primary roads and the 47,993 miles of secondary roads as well. If 80 percent of these additional miles were brought under private maintenance the savings could be as much as $400 million a year. These funds could be available to fund many of our transportation needs.

 

Second, Public Private Partnerships significantly reduce the “projected public cost” for construction and these savings should be factored into the transportation funding formula. The private sector seems ready to finance toll roads, toll bridges and High Occupancy Toll lanes as well as other projects. Private companies have shown interest in paying the state for long-term leases for assets such as the Dulles Toll Road. This one lease could generate immediate cash of $1 billion or more to our state for critical transportation needs.

 

Third, the state and Northern Virginia should revisit the Rail to Dulles project and consider a Bus Rapid Transit system that some experts says would save $2 billion in public monies, maybe more. A new head-to- head comparison is needed.

 

Fourth, the state should use budget surpluses for transportation. This would be another $1 billion or more this year and many billions in the years ahead as long as the economy doesn’t “tank.”

 

Fifth, a few years ago the U.S. House Transportation Committee released a study showing that federal regulations and requirements drive up the construction cost of a transportation project by 30 percent to 40 percent. Earmarked federal transportation dollars should only go for major projects such as rebuilding of the Wilson Bridge, the expansion of Route 81 or for a third crossing in Virginia Beach.

 

Other federal funds should come as a block grant to the state to be used on a prioritized basis. This would lower the cost of our transportation needs by billions of dollars over a twenty-year period. Our powerful congressional delegation and our Governor should work on designing such an innovative funding system.   Finally, reforming VDOT must continue.

 

Senate Transportation Committee Chairman Marty Williams believes that this massive agency can be carved down to about half of its current employees. The idea is supported by past VDOT officials. Such a reform would give us a leaner and more efficient agency.    

 

These six ideas do not require additional taxes or additional fees. If after these efforts are executed and if additional monies are needed, the citizens of Virginia would be more willing to accept tax increases knowing that the Commonwealth had brought 21st-century strategies to bear on the “Transportation Crisis.”

 

-- January 30, 2006

 

 

 

 

 

 

 

 

 

 

 

Editor's note: We published an earlier edition of this column based on a preliminary draft. The published version omitted several important changes made by the author. We have since replaced it with the proper version. We apologize both to Mike and to our readers for the error.

 

Michael Thompson is chairman and president of the Thomas Jefferson Institute for Public Policy, a non-partisan foundation seeking better alternatives to current government programs and policies. These are his opinions and do not necessarily reflect the opinions of the Institute or its Board of Directors.  Mr. Thompson can be reached here.