Financing Infrastructure: Where The Rubber Meets The Road

Virginia’s Hampton Roads Transportation Planning Organization early this year presented the following data to explain the difficulty of financing major transportation projects in urban areas:

To raise enough money for a $1-billion project that has 50,000 daily users would require either: (1) a $4.30 toll; (2) a  regional gas-tax increase of 9.6 cents; (3) an 0.5% regional sales-tax increase; (4) or a combination of a $1.45 toll, 3-cent regional gas tax hike, and 0.2% regional sales tax increase.

Hampton Roads has identified 125 core transportation projects with an estimated construction cost of $30 billion that it needs to build to sustain its economy. Vehicle miles travelled in the region is growing at 11% a year, vs. 7% nationally. The planning agency has identified available funding of $7.7 billion.


About Bill Reinhardt

Editor of Public Works Financing newsletter
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