Virginia needs new, sustainable, reliable transportation funding for several reasons.

First, existing rates and sources have not been adjusted since 1987, while maintenance needs/costs and traffic volumes have increased dramatically.

Second, a “perfect storm” of economic conditions means existing sources are producing far less revenue than in the past.

How much less?

• Motor Fuel Taxes – The FY 2010 estimate for motor fuel taxes, the Commonwealth’s largest transportation revenue source, is only a little more than FY 2003 levels.
• Retail Sales and Use Tax – The FY 2010 estimate for sales tax dollars dedicated to transportation, Virginia’s second largest source, is comparable to FY 2006 levels.
• Motor Vehicles Sales Tax – FY 2010 projections estimate revenues at 39% below FY 2005 levels.
• Recordation Taxes – FY 2010 forecast is comparable to FY 2006 levels.

Even with modest economic recovery, the Virginia Department of Transportation estimates state transportation revenues will not return to even FY 2008 levels before FY 2012.

In the meantime, maintenance and construction needs and costs continue to increase.