More taxes could be coming for Virginia.
As funding for Virginia’s transit system is projected to drop by more than 40 percent over the next three years, a state panel is likely to recommend a regional gas tax hike or other taxes to fill the budget hole. Jennifer Mitchell, director of the Virginia Department of Rail and Public Transportation, said that they would not have enough money to meet regular repair needs by 2020 without even getting to new capacity.
The $110 million budget shortfall will be the result of a state cap on capital revenue bonds, but it could get worse if the federal government’s capital contribution to Metro—$150 million per year for 10 years—is not renewed by the U.S. Congress. Tax hikes will be a tough sell to the Virginia General Assembly, however, and transit upkeep will be a significant issue inherited by Gov. Terry McAuliffe’s successor in January.
Meanwhile, Metro recently announced that as of July 1, higher fares and reduced service would be implemented on July 1. According to The Washington Post, train fares at peak periods will rise by 10 cents, with $2.25 the minimum and $6 the maximum one-way fare. Train fares for off-peak times, as well as bus fares, will rise 25 cents to $2.
Virginia’s Transit Capital Project Revenue Advisory Board is expected to make final recommendations by June.
