I-66 Multimodal Study Final Report - Virginia Department of ...

Potential Funding Approaches5.0 Potential Funding ApproachesThe implementation of all of the I-66 Multimodal Study recommendations would requirefunding beyond existing resources that already are committed to other state and local transportationpriorities. Following is an overview of existing funding (Federal, state, and local) formultimodal transportation investments and a discussion of potential revenue and financingoptions that could be considered to fund the I-66 Multimodal Study recommendations. Not allof the potential funding and finance approaches may be equally appropriate for use in Virginia.In addition, the use of some approaches will require legislative action. Additional informationand details about funding approaches can be found in Appendix E, including Federal and statefunding options and financing techniques.Although estimates of yields for current user fee mechanisms are presented, the analysis relieson a qualitative assessment of the revenue options based on a broad set of criteria that include:• Yield and predictability/reliability;• Synergy with growth and demand;• Stability; and• Flexibility.5.1 Summary of Revenue OptionsFunding for transportation investments in Virginia comes primarily from Federal programsand state highway user fees dedicated to transportation, in addition to state retail sales and usetaxes also dedicated to transportation. Figure 5.1 provides the Commonwealth TransportationFinance Map as presented to the Commonwealth Transportation Board by the VirginiaDepartment of Transportation (VDOT) in September 2011. The figure highlights sources anduses of major state revenues, including the existence of three key funds – the highway maintenanceand operating fund (HMOF), the transportation trust fund (TTF), and the priority transportationfund (PTF) – and the primary sources of funds, including several state sources.Table 5.1 shows the current rates and estimated yields for several of the state fee sources.The TTF was created in 1986 for the purpose of providing dedicated funding for highway construction,transit, ports, and aviation. Formula distributions of the TTF revenues are determinedby statutory code, including how revenues are distributed amongst transportationmodes, how the highway construction share is distributed, and formulas for the use of the transitportion. Specifically, 78.7 percent is allocated to highway construction, 14.7 percent for masstransit capital and operations, 4.2 percent for ports (used for debt service, capital improvements,and construction), and 2.4 percent for airports (used for debt service, capital improvements,and construction). Due to maintenance needs being of higher priority in the statutorycode, no highway construction funds have been available for distribution through the formulasince fiscal year (FY) 2009.5-1