RD2 - Interim Report - The Governor's Commission on Transportation Policy

  • Published: 1999
  • Author: Governor's Commission on Transportation Policy
  • Enabling Authority: Office of the Governor, Executive Order 43

Executive Summary:
Virginia is an ever-changing and evolving state. Our economy is dynamic, our regions are distinct and our view as a Commonwealth is forward-looking. Transportation plays a critical role in our success and our achievements as a Commonwealth. The ability for us to provide opportunity, and to foster a high quality of life while protecting the lives of the traveling public is inextricably linked to an efficient and effective transportation system.

As we stand on the cusp of the 21st century, Governor Gilmore has asked the Commission to examine the policies and procedures that have governed transportation in Virginia for decades. During the past six months the Commission has heard testimony and presentations on myriad transportation issues. In this interim report the Commission sets forth its first steps towards the goal of changing transportation in Virginia. The Commission recommends various options for attacking the problems of traffic and congestion through new policies on teleworking, commuter and business incentives for the use of public transportation and the utilization of the latest available transportation technologies.

The Commission has also set forth the first thoughts on the criteria for the Governor's Priority Transportation Fund (PTF). The PTF is a new approach to transportation planning in Virginia, a new way of prioritizing and funding our greatest needs from a statewide perspective.

The Commission also endorses the Governor's Innovative Progress transportation package that seeks to address the short-term transportation issues using new and innovative funding mechanisms, while allowing the Commission to set forward ideas and continue its study and creation of long-term solutions.

The Interim Report represents the consensus of the work and deliberations of the Commission; however, each member does not necessarily agree with pursuing every option discussed in the report.

This is the first step for the Commission. In the coming months the Commission will continue to explore new strategies, examine long-term financial mechanisms, and begin to build a new structure to set forward innovative transportation policies that will meet the demands of the next millennium. We need policies that govern a true multimodal transportation system that is designed and planned for the movement of people and goods over all modes because transportation in the Commonwealth will encompass more than just highways.

Recommendations of the Telework, Public Transportation and Transportation Technology Task Force

In his remarks on WTOP Radio on August 31, 1999, Governor Gilmore "proposed a partnership between government and our major employers to make significant changes in how we do business, how we get to work, and where we work." This partnership, known as the Ad Hoc Task Force for Telework, Public Transportation, and Transportation Technology, was charged with making recommendations to this Commission regarding telework, public transportation, and transportation technology.

The Commission supports the menu of options for encouraging innovation presented by the Ad Hoc Task Force for Telework, Public Transportation, and Transportation Technology in its attached report to the Commission. Further examination of the recommended options will enable the Commonwealth to remain a leader in its ability to take advantage of new technology, and to encourage innovative uses of technology in daily living. As noted in the Task Force's report, although many of their recommendations focus on Northern Virginia, the recommendations are adaptable to other regions of the state. Below is a summary of some of the Task Force's findings.

Telework

Approximately 20 million Americans telework today; of them, approximately 250,000 people telework in the Washington, D.C. area. Some studies estimate that an additional 470,000 people could telework in the Washington, D.C. area; this could potentially eliminate 658,000 vehicle trips and more than 3.6 million vehicle miles. This information illustrates that telework can benefit Virginians by saving commuting time and alleviating some of the pressure on our transportation system statewide.

The policy options recommended by the Ad Hoc Task Force on teleworking will facilitate implementation of telework programs, and promote an increase in the use of telework. The recommendations include:

• Tax incentives for businesses;
• Matching grants for telework training programs;
• Continued support for state teleworking resource centers;
• A state telework program;
• Incentives for computer hardware manufacturers and Internet Service Providers to encourage use by small businesses;
• Teleflex, which is telework coordinated to increase the number of employees teleworking at the most congested times on the highways;
and
• Supporting Congressman Frank Wolf's legislation to allow for the granting of federal pollution credits to those regions and businesses that effectively employ teleworking to reduce air pollution.

Public Transportation

Citizens of the Commonwealth benefit from the use of public transportation. Virginians used public transportation for approximately 107.5 million passenger trips during the past year, which means that Virginians are some of the biggest users of public transportation in America. In fact, the Washington, D.C. area ranks number one in the country in carpooling. These public transportation successes relieve pressure on Virginia's transportation system as a whole, which makes it reasonable for the Commonwealth to further encourage the use of public transportation by its citizens.

Some of the recommendations of the Ad Hoc Task Force for public transportation include:

• income tax credits to employers for providing transit and ridesharing benefits to employees;
• incentives to encourage the use of transit instead of employer provided parking; and
• State support of a proposed demonstration program by Metro, which is the Northern Virginia/Washington, D.C./Maryland underground rail system, and the Virginia Department of Rail and Public Transportation to develop a universal transportation card that may be used to pay tolls, transit fares, and parking fees.

Transportation Technology

Transportation technology is becoming available at an increasingly rapid rate. There is enormous potential for innovation in this arena and, according to the Ad Hoc Task Force, the Commonwealth should continue supporting transportation technology in order to take advantage of this potential.

Some of the recommendations of the Ad Hoc Task Force for the use of transportation technology include:

• Acceleration of intelligent transportation systems projects, emphasizing technology that alerts drivers in real time to road work, accidents and breakdowns, and also provides alternate routes;
• Synchronization of traffic lights;
• Continue state efforts to put as many state services online as possible; and
• Coordination among state entities to ensure that Virginia is effectively deploying intelligent transportation technologies.

Criteria for the Priority Transportation Fund

The Governor charged the Commission to review options for the Priority Transportation Fund (PTF) and to develop and recommend appropriate criteria by which the fund can be used. The PTF would provide a mechanism for directing additional funds to transportation solutions deemed critical to Virginia's interests on a Commonwealth-wide basis. The Fund will be authorized to finance multimodal transportation solutions of critical importance, including, but not limited to, buses, rail, transit, roads and highways. The Fund therefore, is intended to be long-range in funding concept, statewide in implementation and multi-modal from a transportation policy standpoint. To be successful in achieving its goals and objectives, a set of applicable criteria for selection of transportation solutions must be established.

Any transportation project selection criteria process should be included in a strategic planning perspective dealing with transportation policy over the long term. It should be open and objective and meet the transportation system's long-range needs. The criteria areas that the Commission will consider, include, but are not limited to the following: (In no order of priority)

• Objective and Equitable on a state-wide basis using a scoring system
• Safety
• Cost Efficiency ("Best Bang for the Buck")
• Economic Development
• Land Use and its impact on transportation infrastructure
• Multimodal
• Environmental Considerations
• Public Involvement (Jurisdictional input)
• Public/Private Partnerships
• Maintenance of Assets
• Pre-screening in the application of criteria (e.g. 6-year plan, minimum funding threshold)
• Quantitative measures of use (e.g. level of service, congestion relief)
• Regional cooperation
• Local financial involvement
• Innovation

More analytical effort needs to be made and the Commission intends to devote significant time to sorting through the issues involved before arriving at a set of recommended selection criteria. In the implementation of any selection criteria process, the Commission believes that the Commonwealth Transportation Board should be asked to play an important role.

Support Task Force Highlights

This Commonwealth depends on its transportation network, and must invest in it to enable the state to continue moving forward today and into the future. The Commission supports the Governor's Innovative Progress transportation initiative to keep Virginia moving forward today and in the near term. According to the Governor's charge to the Commission on June 29, 1999, it is the responsibility of the Commission to continue to examine and evaluate how to keep Virginia moving forward over the long term.

With regard to the short term, the Commission endorses the Innovative Progress transportation initiative put forward by Governor Gilmore to provide new funding now.

Innovative Progress

1. Accelerates $590 million of federal funds to advance more than 90 projects statewide utilizing Grant Anticipation Revenue Vehicle (GARVEE) instruments.
2. Repays $200 million into the Transportation Trust Fund funds to give back to all regions and communities of the state the money denied them in the early 1990's.
3. Repays $112 million in interest on the $200 million of funding taken from the Transportation Trust Fund and places the funding in the new Priority Transportation Fund.
4. Securitizes 40% of the Tobacco Settlement funds to provide over $800 million in the next six years to fund the new Priority Transportation Fund.
5. Implements an electronic fuels tax collection system to provide $210 million over the next six years to support the debt service on the Route 58 and Northern Virginia Transportation District bonds.
6. Provides $700 million in general fund support over the next six years for the new Priority Transportation Fund.

Innovative Financing

The Commission heard detailed testimony from financing experts from Wall Street and the federal government on the newest tools available to states for maximizing transportation dollars. These new tools include GARVEEs, the Transportation Infrastructure Finance and Innovation Act (TIFIA), State Infrastructure Banks (SIB), and others, all of which provide states new ways to utilize and leverage precious transportation dollars.

Toll Roads

The Commission heard presentations and suggestions on the use of tolls to support new transportation projects. The proliferation of the use of toll facilities to finance projects has been greatly expanded nationwide. Toll facilities can utilize capital markets for funding, providing new sources of revenue to build needed infrastructure faster than traditional funding mechanisms. Consolidation of facilities may improve a state's ability to take advantage of capita] markets.

Long-term Funding Considerations

The Commission faces the challenge of finding stable, dedicated, funding for the years and decades ahead. There are a number of modifications that will provide, in combination, significant long-term funding for transportation without raising taxes.

• Implementing an electronic fuels tax collection system as proposed in Governor Gilmore's Innovative Progress transportation initiative.
• Pay sales tax collected by automotive businesses for transportation purposes
• Dedicate more of the existing Motor Vehicle License Fee to transportation
• Eliminate the current practice of supporting other state agencies with monies collected for transportation purposes
• Fund the Department of Motor Vehicles out of General Fund with the result that $126.1 million a year will then be available for transportation purposes

Continuation of Innovative Financing Through Existing Programs

All of these options are premised on the state continuing to pursue innovative financing through a number of existing programs:

• Public-Private Transportation Act
• State Infrastructure Bank
• Federal Transportation Infrastructure Finance and Innovative Act (TIFIA)
• Toll Facilities Revolving Account
• Special Transportation Tax Districts
• Community Development Authorities

General Obligation Bonds

Another option is the issuance of General Obligation Bonds. Without a dedicated revenue source for such bonds, these would be 9 (b) bonds requiring approval by voter referendum. With a dedicated revenue source, these could be 9 (d) revenue bonds that may be approved by the General Assembly.

Regional and Local Government Funding Options

Listed below are options that impact localities and regions throughout the Commonwealth. These concepts could be addressed through specific legislation as advanced by a particular region or local government. These ideas must be developed in a manner that incorporates the principle of taxation by representation. The general concepts of the approaches are outlined below for examination.

• Authorize local governments to impose an additional regional gas tax, income tax, or sales tax for regional transportation purposes after approval in a voter referendum
• Authorize creation of a Regional Transportation Financing Authority with the approval of local governments

The Next Steps of the Commission

During the past 6 months the Commission has reviewed and explored the broad policies and issues that govern transportation in Virginia. During the next year the Commission will begin to probe beneath the broad issues into the specific areas of the three Task Forces, Strategy, Structure, and Support. Issues include:

1. Transportation planning
2. Role of local governments
3. Use of Intelligent Transportation Systems
4. Use of public transportation
5. Use of passenger rail
6. Contracting issues and management
7. Changes in agency roles and responsibilities
8. Reorganization of agency structures
9. Innovative financing
10. Local financing issues
11. Modifying use of existing resources

By the next scheduled report in July 2000, the Commission plans to address the general Strategy issues, the final recommendations of the criteria for the PTP, and complete the first stage of the structural and long-term funding discussions. All conclusions and recommendations of the Commission will be set forth in the final report due to the Governor on December 1, 2000.