In 2022, the General Assembly disregarded two long-standing principles of funding transportation projects in the Commonwealth. Republican Gov. Youngkin followed down that path this year.
The General Assembly has dedicated sources of revenue to be used for transportation, with general government functions being financed by general income and sales taxes and other special funds. The revenue sources for transportation include taxes on gasoline and other fuels, motor vehicle licensing and titling taxes, operating licenses fees, and 0.5 percent of the 4.3 percent state sales tax. Localities in specified regions of the state are authorized to levy an additional 0.7 percent sales tax to be used for transportation. The concept of having funding for transportation and general government separated was so ingrained in the legislature that there have been attempts in the past to create a “lockbox” for transportation funds to avoid their being used for other general government purposes. The latest such attempt was in 2018.
By statute the legislature has stipulated broadly how transportation funding will be distributed: by system, by highway district, etc. It has also authorized the issuance of bonds by the Commonwealth Transportation Board and other entities. However, with few exceptions, the main one being the widening of U.S. Rt. 58, the legislature has stayed away from designating the specific projects to be funded. It has left that function to the Board, relying on guidance from the Virginia Department of Transportation. It was a prudent choice. Otherwise, the funding of specific projects would be largely based on politics, rather than need. Continue reading