VACo Budget Update: Transportation

January 4, 2016

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The following is VACo’s analysis of the Transportation recommendations by Governor Terry McAuliffe in his FY 2016–2018 biennial budget.

 

FY16 Caboose Bill (HB29/SB29) Budget Amendments

  • No operational budget amendments are provided in the Caboose Bill.
  • FY 2016 Revenue Sharing Program budget allocations total $189 million. The program provides additional funding for use by a county, city, or town to construct or improve the highway systems within such county, city, or town, with statutory limitations on the amount of state funds authorized per locality. Funds can also be requested for eligible additions in certain counties (those localities requesting the maximum allocation) of the Commonwealth. Locality funds are matched with state funds for qualifying projects. A breakdown of the program allocations for FY 2016 can be found here.

FY17/18 Budget Bill (HB30/SB30) Budget Proposal

      Rail and Public Transportation

  • Provides $1 million in nongeneral funds in FY 2017 and FY 2018 to the Rail Preservation Fund. The Rail Preservation Fund benefits the shortline railroads, which provide the local network and the “last mile” of service for rail freight to reach its destination. It promotes the continuation of rail service by achieving Federal Railroad Administration Class 2 track safety standards. It also promotes development of rail transportation support facilities, encouraging industrial growth and promoting truck diversion from Virginia’s highways.

Department of Transportation
Local Programs

  • Appropriates $95 million in FY 2017 and $56 million in FY 2018 for Construction District Grant Programs. These programs assist in funding projects and strategies that address a need in the Statewide Transportation Plan. No new general funds are represented in this appropriation.
  • Allocates $150 million in FY 2017 and $100 million in FY 2018 for the Local Revenue Sharing Program. The allocation represents a decrease from $189 million allocated in FY 2016.
  • Allocates $1.3 million in FY 2017 and $2.1 million in FY 2018 to the Transportation Partnership Opportunity Fund. The program is used by the governor to provide funds to address the transportation aspects of economic development opportunities. The eligible use of the funding was updated during the 2015 General Assembly by Chapter 684 (House Bill 1887).
  • Appropriates $66 million in FY 2017 and $67 million in FY 2018 for financial assistance to County Road Maintenance. No new general fund dollars are represented in this appropriation.
  • Appropriates $14.5 million in both FY 2017 and FY 2018 for financial assistance for Planning, Access, Roads and Special Projects to localities. Of the appropriation, $7 million in both years is directed by budget language to go to economic development, industrial and pedestrian access roads. $1.5 million of the appropriation in both years is allocated to Recreation Access Projects. No new general fund dollars are represented in this appropriation.

VACo Contact: Beau Blevins

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