RD398 - Virginia Department of Transportation 2013 Annual Report Pursuant to Chapters 36 and 152 of the 2011 Acts of Assembly of the Virginia General Assembly


Executive Summary:
Chapters 36 and 152 of the 2011 Acts of Assembly amended the Code of Virginia by adding § 33.1-13.03, which directs that by November 30 of each year the Commissioner of Highways is to deliver a report summarizing the condition and needs of the Commonwealth’s highway system and the Virginia Department of Transportation’s (VDOT’s) strategies to improve safety and security, and increase efficiency in delivery of its programs. The statute also instructs the Commissioner to report on strategies for working with the private sector and local government in the delivery of services, and to report on the operating and financial activities of the Department. Finally, Virginia Code section 33.1-13.03 instructs the Commissioner to report on “other such matters of importance to transportation in the Commonwealth.”

The 2013 VDOT Annual Report is published pursuant to section 33.1-13.03. The body of the Annual report is comprised of four chapters. Chapter I highlights the current condition and the FY 2015 - 2016 biennial needs of Virginia’s highway system.

Chapter II summarizes VDOT’s efforts to improve the safety of the motoring and non-motoring public. Chapter II also presents an overview of VDOT’s security programs and protocols. This section is followed by an overview of VDOT’s strategies to increase efficiency in delivery of its programs. VDOT’s efforts in working with the private sector and local governments are presented in the two final sections of Chapter II.

Chapter III summarizes budget performance data on the operating and financial activities of VDOT for the reporting period FY 2013 (July 1, 2012 – June 30, 2013).

Chapter IV presents “Other Matters of Importance to Transportation in the Commonwealth.” VDOT believes that agency activities, as they relate or contribute to multimodal systems warrant mention in this report, and Chapter IV summarizes VDOT’s role in support of the development of effective multimodal systems. This includes participating in the update of VTrans 2035, the Commonwealth’s statewide multimodal long-range transportation policy plan. The update was completed in February 2013. In the effort to take advantage of all available financial resources to aid in pursuit of the Commonwealth’s transportation program, VDOT actively pursued and assisted other non-VDOT entities in pursuing federal competitive grant opportunities in FY 2013. A summary of those efforts and the results are also presented in Chapter IV.

The “Moving Ahead for Progress in the 21st Century Act” (MAP-21, P.L. 112-141) is the two year federal transportation program, enacted in July 2012, and effective on October 1, 2012. Since MAP-21’s passage, the Federal Highway Administration (FHWA) has released several guidance documents, developed new rules and regulations and produced several webinar presentations designed to assist states, Metropolitan Planning Organizations and other affected parties in understanding the program. VDOT’s Policy Division has tracked FHWA’s efforts closely in order to assist any affected VDOT Division in implementing program and policy changes due to MAP-21. This effort included assisting in the development of proposals for needed changes in Virginia’s highway laws and regulations. Changes to the Commonwealth’s highway program based on MAP-21 are highlighted throughout this report, while the final section of Chapter IV presents a summary comparison of the major elements of MAP-21 and the former federal program, the Safe Accountable Flexible Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).

*** A Special Note Concerning House Bill 2313 ***
(Chapter 766 of the 2013 Acts of Assembly)

During the 2013 General Assembly session, transportation funding was addressed in historical measure by House Bill 2313. The revenues generated by HB 2313 will breathe new life into Virginia’s transportation program.

The major sources dedicated to transportation include:

• Motor Fuel Taxes
• Motor Vehicle Sales and Use Tax
• State Sales and Use Tax
• Motor Vehicle License Fees
• International Registration Plan
• Recordation Tax
• Auto Insurance Premiums dedicated to the Priority Transportation Fund

Of the revenue sources dedicated to transportation, the most significant change attributable to HB 2313 relates to taxes collected on the sale of fuel. Instead of collecting 17.5 cents per gallon on gasoline and diesel, a Motor Fuel Sales Tax is being collected at 3.5% on gasoline and 6% on diesel as of July 1, 2013. This revenue is distributed as follows: 80% to the HMOF, 15% to the TTF, 4% to the Priority Transportation Fund (PTF), and 1% for the Department of Motor Vehicles for administering collection.

Other sources of revenue were also altered by HB 2313 to provide for additional revenue, with new options designed to reduce reliance on fuel tax revenue over time. The Retail Sales and Use Tax was increased statewide by 0.3%, with the increase dedicated to transportation. The 0.3% increase is divided between the HMOF (0.175%) and intercity passenger rail and mass transit (0.125%). The bill also contains an incremental sales tax commitment of the existing sales tax to transportation from the current 0.5% to 0.675% over four years. These additional funds are dedicated to the HMOF. The legislation also increases the Motor Vehicle Sales and Use Tax from 3.0% to 4.0% effective July 1, 2013, with additional incremental increases through FY 2017 that will reach 4.15%. All of the revenue generated by this increase is dedicated to the HMOF. The HMOF will also receive all of the revenue generated by a $64 registration fee for electric vehicles, hybrid electric vehicles and alternative fuel vehicles. Mechanisms are also put in place to dedicate a majority of revenue that may be generated after Congressional approval of the Marketplace Fairness Act to transportation.

HB 2313 also increased the state sales tax by an additional 0 .7 percent in planning districts meeting specified criteria (currently Planning District 8 [Northern Virginia] and Planning District 23[Hampton Roads]); imposes a 2 percent Transient Occupancy Tax in planning districts meeting certain criteria (currently Northern Virginia Planning District); includes a regional congestion relief fee of $0.15/$100 for real estate transactions (grantor’s tax) in planning districts meeting certain criteria (currently Northern Virginia Planning District); imposes a new 2.1% tax on wholesale fuels distributors in certain planning districts (currently Hampton Roads Planning District—the same tax is already imposed in the Northern Virginia planning district).

Table 1 sets forth information relating to impacts of HB 2313 on Statewide Transportation Funding while Table 2 sets forth information relating to VDOT anticipated revenues for the next six years, taking into consideration additional estimated revenues that will be generated by HB 2313. Table 3 reflects estimated regional/local revenues that will be generated by HB 2313.

The Six-Year Improvement Program (SYIP) (2014 To 2019) addresses planned transportation projects for the upcoming six years. Table 4 sets out information relating to funding for the prior three SYIPs as well as the Current SYIP and reflects the impact on the Program of Estimated Statewide and Regional Funding provided by HB2313.