Virginia needs more than half a billion dollars to cover its intercity rail services and development over the next decade, according to a report from the state’s Department of Rail and Public Transportation. More than half of the money — $353 million of the $629 million — is needed for the planned development of a high-speed rail system from Richmond to D.C. The remainder is tied to operating needs for Amtrak train service, which includes service from D.C. to Richmond and Lynchburg.
A federal transportation bill passed in 2008 shifts costs for many intercity passenger rail services to states. In 2013, Virginia will have to support six of 13 trains operating in the state or lose its Amtrak service, the report said.
In fiscal 2011, the department’s budget is about $465 million, nearly half of which comes from bond proceeds.
Gov. Bob McDonnell recently announced that an $87 million Rail Enhancement Fund grant would be used to upgrade tracks between Norfolk and Richmond, with plans to eventually link Norfolk service to Richmond and D.C. The fund relies on a portion of the state’s vehicle rental tax and interest earned on cash balances.
“Connecting Norfolk to the Amtrak network and the Northeast is a major step forward for the mobility of the region,” said DRPT Director Thelma Drake.
The rail agency’s report notes, however, that other sources of revenue will eventually be needed. Such options include raising the rental car tax from 10 percent to 13 percent, assessing additional fees for personalized license plates and redirecting sales taxes from car sales.
McDonnell already outlined a plan to pump $4 billion into state transportation projects over the next three years — including roads, transit and rail projects — without raising taxes.
About $3 billion of that funding would be borrowed by issuing bonds. The governor stressed competitive bidding for projects and current low interest rates as motivation to fund the projects as soon as possible.
But Del. Adam Ebbin, D-Alexandria said “we just can’t have the governor whipping out the charge card.”
“At some point, we’re going to have to bite the bullet and consider raising revenue,” he said.
