April 12, 2013

The Commonwealth Institute: Destination Unknown

ITEP Work in Action

Navigating Virginia’s New Transportation Funding Package – and Potential Potholes

The final transportation package passed by the General Assembly raises a lot of money for our roads, bridges and mass transit– but it creates some problems, too.

The final legislation (HB2313) makes far-reaching changes in the way transportation is funded in Virginia. Among the key concerns it raises:

The tax increases in the package would require low- and moderate-income Virginians to pay a bigger share of their earnings for transportation than wealthier households.

The legislation includes no measures to make the funding responsibility more equitable.

It shifts the cost of paying for highway improvements and routine maintenance away from drivers, who benefit the most from better roads.

One major component of the package requires federal action, and it’s possible that the local pieces will face legal challenge, either of which could cost the package millions of dollars if things don’t fall the state’s way.

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