Despite receiving stimulus money for transportation improvement, the Virginia State Department of Transportation had to cut an additional $134 million from this year's transportation budget because of the recession, VDOT Chief Engineer Malcolm T. Kerley said.
The commonwealth's September revenue update mandated the commonwealth cut nearly $800 million in transportation spending during the next six years, a decrease which required $134 million be cut from this year's budget by December.
"We are not sure right now of exactly how we will make this cut but previously [when we've made cuts] we have looked across the board to decrease spending," VDOT Chief of Communications Jeff Caldwell said.
To accommodate budget cuts in each of the past several years, Caldwell said, the department has cut 800 highway projects, reduced motorist's services - including closing certain rest areas and decreasing the frequency in cutting roadside grass - in addition to internally restructuring the department by shutting down some offices and laying off 1,000 employees.
Although it provides funding, the stimulus package legislation does not allow the transportation money to be used to help recover the department's budget deficit, Caldwell added.
"The money has been allocated as outlined in the stimulus legislation to go towards structurally deficient bridges, pavement improvement, highway capacity improvements, and rail improvements," he said.
Nearly two-thirds of Virginia's transportation revenues are tied to fuel purchases and auto-sales, both of which have declined, VDOT Chief Financial Officer Reta Busher said in a presentation Wednesday.
"Gasoline consumption is down largely due to high unemployment rates and reduced consumer spending," she said, noting that an increase in the gas tax could significantly reduce the need for budget cuts.
The potential gas tax increase, however, has become a heated point of debate in the 2009 Virginia gubernatorial election.
Virginia GOP spokesperson Tim Murtaugh expressed concern about such a tax, which he said would "most greatly affect the very people who can afford it least."
Democratic gubernatorial candidate Creigh Deeds, meanwhile, has yet to detail his plan to address the commmonwealth's transportation woes, apart from stating his intent to most likely support a tax increase.
On the other hand, Murtaugh said, Republican gubernatorial candidate Bob McDonnell has taken a firm stance against the gas tax increase. Instead, McDonnell plans to get funding from "12 separate funding mechanisms that will get long-needed projects underway and provide $1.4 billion annually in new revenue for transportation, without raising taxes."
Part of McDonnell's funding plan includes privatizing Virginia's Alcoholic Beverage Control stores, issuing $3 billion in available bonds for transportation, supporting the future bond issuance of $1 billion for highly congested areas, and possible future revenue from off-shore drilling," McDonnell spokesperson Crystal Cameron said.
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