Koelemay's Kosmos

Doug Koelemay


 

 

There's a Hole in the Bucket

It's called road maintenance, and it's draining the Transportation Trust Fund of revenue for new construction. 


 

Well into its sixth straight year of trying half-measures and cost-shifting ideas for transportation funding, the Virginia General Assembly appears to be readying itself to do something more than sing about the hole in the bucket. The action would have to come in a special legislative session sometime in the months ahead. Without action the FY2009-2014 Six-Year Improvement Plan (SYIP) will require a cumulative $1.4 billion to be moved from construction into highway maintenance.

Most of us are familiar with the circular argument in the old song between Henry and Liza that begins and ends with “There’s a hole in the bucket.” Henry is all about stating the problem. Liza is always ready with the incremental solution. Liza’s suggestions, stanza by stanza, respond to Henry’s questions -- to fix it, dear Henry, with straw that he should cut with the hatchet that he’s sharpened on the stone he has wetted with water he has carried in the bucket.

“There’s a hole in the bucket, dear Liza, a hole,” Henry laments as he ends up at the point where he started. The song endures because there are fewer things cuter than the singing back and forth between boys and girls. But what we applaud in children wears thin when proffered by adults as transportation policy.

The hole is in Virginia’s transportation maintenance budget. It started innocently enough as revenues dedicated to the Highway Maintenance and Operations Fund began to grow more slowly than maintenance needs. The initial diversion of construction funds from the Transportation Trust Fund was fairly discrete. Since FY2003, however, the costs of ordinary maintenance of ditches, potholes and equipment, rehabilitation and reconstruction of bridges, guardrails and drainage pipe, and daily operations and incident management have grown by double digits each year.

The Virginia Department of Transportation estimates, for example, that the average cost per lane-mile of a one-and-one-half inch of asphalt overlay has jumped 85 percent in the last five years. Seven of Virginia’s nine transportation districts now spend more on maintenance than construction. Actual spending for maintenance in the current fiscal year ($1.26 billion) virtually equals spending for construction ($1.36 billion). And maintenance and operations costs are projected to grow at four percent a year, even in a less-than-booming economy.

As is the case with Henry, some members of the General Assembly have been content to move unimaginatively from one question to the next. One can see the hole, but do we really need water? Why is there a hole in the bucket? Was the bucket poorly made? Did past users of the bucket cause the damage? Should bucket users pay a special fee? What if we encourage users to explore other water-carrying options? Perhaps the improvement of the overall economy will prompt the bucket to fix itself.

In 2007 the General Assembly did include in its transportation funding package some new revenue sources for the Highway Maintenance and Operations Fund, including the so-called abuser fees for habitually bad drivers and taxes on auto insurance premiums. But with abuser fees now repealed, half of the hole still needs to be fixed. And until the hole in the maintenance budget is fixed, new revenues to be generated by regional plans in Northern Virginia and Hampton Roads will end up substituting for, not complementing, state revenues.

In special session later this year, the Assembly will have the opportunity to put revenues for bridge repair, road construction and more robust system operations on solid footing by approving new revenues that not only fill the hole but grow as maintenance needs grow. The Virginia's delegates and senators can return the Henry-Liza “hole in the bucket” song to the elementary schools where it belongs.

 

-- April 21, 2008 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact info

 

J. Douglas Koelemay

Managing Director

Qorvis Communications

8484 Westpark Drive

Suite 800

McLean, Virginia 22102

Phone: (703) 744-7800

Fax:    (703) 744-7994

Email:   dkoelemay@qorvis.com

 

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