2018 Special Session I

Budget Amendments - HB5002 (Committee Approved)

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Eliminate Proposed Bond Authorization

Item 445 #2h

Item 445 #2h

First Year - FY2019 Second Year - FY2020
Department of Rail and Public Transportation FY2019 $0 FY2020 ($110,000,000) NGF

Page 389, line 16, strike "$553,248,455" and insert "$443,248,455".

Page 391, strike lines 6 through line 17 and insert:

"G.1. The Department of Rail and Public Transportation, in conjunction with the Department of Treasury and the Department of General Services shall investigate options to develop a program for the financing of statewide transit capital needs using the Master Equipment Leasing Program currently operated through the Department of the Treasury as a model to facilitate group purchases of mass transit equipment.  The goal of the program would be twofold: (i) to achieve cost savings through bulk purchases and (ii) to establish a revolving fund to meet transit capital replacement needs that does not rely on the use of longer-term debt for items with a limited life cycle.

2. As part of this effort, the department shall convene a work group that includes representatives from the Northern Virginia, Rappahannock and Potomac, and Hampton Roads Transportation District Commissions, at least one transit property that is not a member of a Transportation District Commission, the Virginia Municipal League and the Virginia Association of Counties.  The work group shall utilize the Report of the Transit Capital Revenue Advisory Board findings relating to state of good repair needs to develop and estimate of the amount of transit capital funding needed annually and shall also identify potential sources within the Transportation Trust Fund that could be used to provide lease payments for the program.

3. The Director of the Department of Rail and Public Transportation shall submit a report on the proposed program, including legal requirements, terms, rates and operational structure to the Governor, the Chairman of the House Appropriations Committee and the Senate Finance Committee by November 1, 2018."  


(This amendment eliminates a proposed $110.0 million bond authorization for transit capital improvements that is included in House Bill 5002 as introduced in fiscal year 2020. It is premature to issue bonds for this purpose before implementing the transit capital project prioritization process similar to that which is used for highway projects under "Smart Scale." Further, the bonds do not fully expire until fiscal year 2021, with the commitment under PRIIA funded with bonds through fiscal year 2020. The bond language is replaced with a directive that DRPT investigate options to establish a MELP program which could serve as a revolving fund for the purchase of this equipment which has a limited lifetime and is not suited for longer-term bonds.)