February 2009
The Virginia Business Council (VBC) believes that a comprehensive and well functioning transportation system is a critical component of continued economic growth and development in Virginia. An efficient commercial transportation and distribution system is vital to the quality of life and economic competitiveness of Virginia and to the mobility and safety of citizens throughout the Commonwealth.
Since the last sustainable long-term investment in the Commonwealth’s transportation system 23 years ago: vehicle miles traveled have increased 79 percent to 212 million miles per day; transit ridership has increased 58 percent to 161 million miles per day; licensed drivers have increased 34 percent to 5.2 million; and population has increased 20 percent to over 7.4 million. Yet, during this same period, state road mileage has increased only about 7% while the buying power of each transportation dollar has eroded by more than 40 cents.
Over the past year, Virginia’s transportation challenge has become even more dire. As the international, national and Virginia economies have slowed; the Commonwealth’s transportation revenue has fallen even further. Revenue associated with Virginia’s air and sea ports is down a combined 17 percent form the previous year. Motor vehicle sales tax collections are down 33 percent, original vehicle registrations are down 20 percent, recordation tax revenue is down 22 percent and diesel fuel tax collections are down 14 percent.
These statistics indicate a critical need for adequate, new, sustainable, long-term investments in Virginia’s transportation system. The loss of revenue from existing sources and the lack of new investment have resulted in the prospect of $2.6 billion reduction in Virginia’s six year transportation plan. Many critically important transportation improvements, including needed repairs to over 1,700 structurally deficient bridges, will not be made in the foreseeable future if new transportation revenue is not enacted.
The VBC believes the following fundamental principles should be considered as part of transportation investment legislation:
The VBC believes that the transportation infrastructure challenge must be addressed and urges the Governor and General Assembly to make significant new investments in 2009.