Transportation Funding in Va.
Larry Gross
By LARRY O'DELL
Associated Press Writer
RICHMOND, Va. (AP) -- Like a new Lotto
millionaire eager to take his cash in a
lump sum instead of in annual installments,
Gov. Jim Gilmore wants a large
chunk of Virginia's tobacco settlement and
federal highway funds up front to pay
for road projects.
Administration officials briefed the House
Appropriations Committee on details of
Gilmore's $2.5 billion transportation proposal
Monday. The General Assembly
will consider Gilmore's plan during the 60-day
session that begins Jan. 12.
Virginia expects to receive $4 billion over 25
years as its share of the settlement
between cigarette makers and 46 states. The
legislature has earmarked 50
percent to help tobacco-growing communities
and 10 percent to combat youth
smoking.
The remaining 40 percent -- about $1.6 billion
-- has not been allocated. Gilmore
has proposed using it for high-priority road
projects.
But instead of taking that 40 percent in
roughly equal annual payments, Gilmore
wants to take a $600 million lump sum, which
is permissible under terms of the
settlement, to finance road-building bonds.
The other $1 billion would come in
the form of residual payments over the life of
the bonds, state Treasurer Mary
Morris told the committee.
Gilmore proposed a similar approach to tap
Virginia's share of federal highway
dollars. A 1995 federal law would allow
Virginia to borrow against future federal
allocations to finance a $590 million bond
issue.
Transportation Secretary Shirley Ybarra said
Gilmore's proposal would allow the
state to begin work on 90 projects that had
been delayed in the Department of
Transportation's six-year improvement plan.
Five states already have used this type of
funding mechanism, and Virginia is
one of five other states considering cashing
in on the program.
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