Transportation Revenues Rebound after Historic Decreases

September 23, 2021

During the Monday, September 20 meeting of the House Appropriations Committee, Deputy Secretaries of Transportation Nick Donohue and John Lawson provided updates on the state of transportation revenues used to finance infrastructure projects across the Commonwealth. Thankfully, after facing historic lows caused by decreases in fuel consumption, transit ridership, and other economic factors related to the pandemic, revenues are exceeding. FY 2021 Commonwealth Transportation revenue collections were $368.5 million above estimate.

From the start of the pandemic through FY27 state transportation revenues are down $1.8 billion from March 2020 estimates. The General Assembly provided the Commonwealth Transportation Board (CTB) with authority to take actions with the goals of: reducing impacts on then currently programmed projects fully funded in the Six Year Improvement Program (SYIP) and allowing for phased implementation of the 2020 Governor’s Omnibus Transportation Bill.

In addition to the FY 2021 returns Transportation is also supposed to receive 2/3 of any undesignated General Fund surplus (estimated to be $115 million for FY21). However, this action must be approved by the General Assembly during the 2022 regular session.

FY 2022 through FY 2027 state transportation revenue estimates will be updated in December. By then, additional clarity should be given about the state of recovery for transportation funding as well as whether federal legislation pertaining to infrastructure will be enacted by Congress.

VACo Contact: Jeremy R. Bennett

 

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