Virginia's Transportation Woes

Following the inconclusive Special Session of 2008 that focused on transportation, there has been surprisingly little effort to remedy the Commonwealth’s transportation woes. The current recession has compounded the problem and even with stimulus monies, VDOT has to readjust the way it carries out the business of maintaining Virginia’s transportation systems.

NO GROWTH UNTIL 2015

Since June 2008, transportation revenue forecasts for FY 2009-2014 have been reduced by $2.6 billion. While some one-time, cost-saving measures were implemented immediately that saved $347 million for FY 2009, further reductions to VDOT’s six-year plan and other services are necessary. Because forecasted state revenues do not return to the level originally forecasted for FY 2009 until FY 2014, there will be almost no growth until then.

Many programs at VDOT will see marked impact. Construction programs will be impacted the greatest and focus will be readjusted on safety, pavement, and bridges. Additionally, increased focus on public transportation will be a priority. There will be implementation of organizational and staffing changes throughout VDOT, including the way the private sector is used.

Notably, the VDOT maintenance program will change. While maintenance program funding for FY 2009 was revised down from $1.349 billion to $1.186 billion, FY 2010 will be funded at $1.370 billion – which will also serve as the baseline for FY 2011 – 2014. The focus will be investing in pavements and bridges to preserve infrastructure, with maintenance program budget decisions being based on maximizing safety to citizens.

SERVICE REDUCTIONS & JOB ELIMINATION

Other recommendations for statewide service suspensions, reductions, and elimination for FY 2010 have been made to the Commonwealth Transportation Board. Consisting of 17 members appointed by the Governor, the Commonwealth Transportation Board sets administrative policies and allocates funding for Virginia’s transportation systems. The primary services currently under consideration are:

· Rest areas and welcome centers: closure of 25 rest areas and 1 welcome center would save $12 million

· Ferry services: saving $2 million by reducing schedules

· Safety service patrols: changing service hours and reconfiguring service delivery model could save $2-5 million

· Interstate maintenance services: re-scoping contracts could save $10-15 million

· Vegetation management: adopting new standards to save up to $20 million

Potential savings from cuts to these services could amount up to $54 million if all recommendations of the Board are implemented to their full potential. However, these reduction strategies would result in the loss of public and private sector jobs. For example, the closure of the 25 rest areas would result in the elimination of approximately 203 Virginia jobs.

Unfortunately, there has been little communication with the legislature regarding reduction recommendations and policy changes at VDOT. However, VDOT has been meeting with and seeking input from over 700 of their employees and the CTB will be holding 11 public listening sessions across the state during March. Final recommendations will be presented at the CTB’s May meeting, with adoption in June, and implementation on July 1.

Contact: Bud Oakey

804.228.4505

boakey@advantusstrategies.com