Submitted by
W. Heywood Fralin
March 2006
The Virginia Business Council, which promotes the enhancement of free enterprise and economic development in Virginia, recently stood with representatives from education, public safety, and healthcare to urge members of the Virginia General Assembly to agree on a transportation investment plan for Virginia.
The Business Council membership believes it is absolutely necessary to enact a sound long-term solution to Virginia's transportation crisis. We recognize the mutually dependent relationship between the strength of our economy and well educated and healthy citizens who live in a safe environment with a functioning transportation system. These are the building blocks to economic opportunity and prosperity for everyone in Virginia.
We commend the Governor, the House of Delegates and the Senate on reaching consensus that Virginia has a serious transportation crisis that demands a solution now and their agreement that it is a multi-billion dollar crisis. We agree with many of the good ideas in the plans put forth by the Governor, the House and the Senate and believe that they can be a part of the right answer for Virginia to deal with this crisis.
All of the transportation studies and reports in recent years confirm that the unfunded need for road and transit improvements is in the tens of billions of dollars. The Business Council members recognize that an investment of this amount is not feasible at this time. However, we believe that an additional $1 billion in annual new investment in transportation is feasible and required as a minimum. This investment should come from dedicated, long term and sustainable revenue that does not divert investment in other critical priorities.
In the last few years, Virginia has enjoyed an especially strong economy that has provided increased revenues to better meet our Commonwealth's core priorities and obligations for education, health care, public safety and protecting our environment. However, experience tells us that there are cycles in our economy. We believe that we cannot rely on continued higher than average economic performance to fund our long term commitments.
During the economic downturns that always occur, declining revenues have forced difficult cuts to our colleges and schools, healthcare providers and hospitals, law enforcement and other public safety agencies and in other core services. We believe an over-reliance on the general fund for transportation during a future economic downturn would result either in no new funds for transportation, or cuts in core services, or both.
It is commonly understood that Virginia's transportation system is dysfunctional. Efforts to increase efficiency and to promote partnership with the private sector must continue. However, we must also acknowledge that investment in transportation has not kept pace with our economic success.
Since the last major increase in transportation investment in 1986:
Over this time, the buying power of a transportation dollar has eroded by 40 cents.
The members of the Virginia Business Council urge legislators to consider our failing transportation system as a direct threat to the business climate and the quality of life in Virginia. While the right solution may require difficult decisions, we are confident that the capable leaders of the General Assembly will reach an acceptable solution that can be sent to the Governor and we urge them to do so as soon as possible. Virginians do not want another budget stalemate.
W. Heywood Fralin is the Chairman of the Virginia Business Council.