Gov. McDonnell Plans to Rev up Transportation Spending
December 10, 2010
"The governor detailed a plan for the $4 billion increase -- a plan that would bring jobs and alleviate congested roads." Headline, Roanoke Times, Dec. 10
Roanoke Times, December 10, 2010, Headline, Page
Reference:
http://www.roanoke.com/news/roanoke/wb/270342
"Gov. Bob McDonnell on Thursday proposed a $4 billion increase in transportation spending during the next three years, outlining a series of borrowing, lending and rebudgeting moves though no tax increase.
The administration has already found a portion of the money and pledged to rapidly ramp up highway construction while the price for contractors' services is depressed and interest rates on borrowed funds are low in the frail economy.
"We need the jobs now. We need the congestion relief now. We need to make the deals now," McDonnell said during the Governor's Transportation Conference that concludes today at the Hotel Roanoke.
But the governor added that his announcement embodies only "a start" and pledged further announcements before the General Assembly convenes Jan. 12.
Critics were quick to question the governor's reliance on borrowing and the lack of a proposal for new revenues.
In round numbers, the plan envisions selling more than $2.9 billion in new bonds. Officials would allocate $400 million in already-identified surplus state money to loans, loan guarantees and grants to local governments strapped for road dollars. To garner the other $700 million, the governor mentioned the possibility of future surpluses and whatever money the state would make if it privatizes state-owned liquor stores."
