One of the major responsibilities of the Commonwealth is providing for the construction and maintenance of a system of highways to meet the transportation needs of Virginia's citizens, businesses and industries. Because of the large costs and long developmental lead times involved in highway construction, economic recession, alteration of the public's driving habits, and changes of policy on the part of the federal government can have significant impacts upon the quality and scope of the Commonwealth's highway program. Appreciating this relationship, the 1975 General Assembly adopted a resolution charging the Virginia Advisory Legislative Council with a investigation of the impact of revenue losses on the Commonwealth's highway program.

Delegate Lewis A. McMurran, Jr. of Newport News, a member of the VALC, was selected to chair a VALC Committee to undertake the study. The Council approved the following as members of the study Committee: Delegates Robert B. Ball, Sr. of Richmond, Archibald A. Campbell of Wytheville, Orby L. Cantrell of Pound, L. Cleaves Manning of Portsmouth, and James M. Thomson of Alexandria and Senators Omer L. Hirst of Annandale, Paul W. Manns of Bowling Green and Edward E. Willey of Richmond. At the Committee's first meeting, Senator Manns was elected Vice Chairman.

The Committee held a number of public meetings at which they heard testimony from the Commissioner and other officials of the Department of Highways and Transportation. The Committee also heard testimony from Dr. Charles J. Gallagher and Dr. George K Hoffer in connection with a report (Transportation Taxation in Virginia: An Interstate and Intermodal Analysis) which they authored for the Revenue Resources and Economic Commission. The Committee also reviewed summaries of work of other committees and of earlier highway studies as they bear on the Committee's concerns. An excerpt from the earlier VALC study Urban Streets and Highways, prepared in 1971 and presented to the Governor and General Assembly in 1972, well illustrates the ongoing nature of the problem with which the present Committee is dealing:

"In the two years that have intervened since the Council last reported on this problem, the impossibility of meeting the goals of the nine-year plan has become more evident. Delays in federal funding for the interstate system, higher standards of design and construction for safety and environmental purposes and, most importantly, inflation have put the 1975 target date beyond reach. Clearly major policy changes are needed to counteract the anticipated gap of $1.5 billion in financing the total plan.

As a result the Department of Highways and the Council recommend a new time schedule for achievement of the highest priority aspects of the original nine-year plan, during the decade from 1972 to 1982. This would include all of the remaining projects in the interstate and arterial networks, the highest priority items in the primary and secondary system improvement programs, increased State funds to municipalities for both construction and street maintenance arid increased emphasis on urban transit-related projects."

The Committee also questioned representatives of the Department of Taxation, the State Corporation Commission and the Division of Motor Vehicles. A brief list of materials presented to the Committee (in addition to oral testimony) is attached to this report.