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I-81 Funding Amendments Proposed By Northam Set To Play Out Next Week

Governor Ralph Northam (D) is now proposing a myriad of fee and tax increases that would be dedicated to roadway infrastructure projects like the rebuilding and modernization of the Interstate 81 corridor that scythes through Virginia’s Shenandoah Valley. Northam made his pitch yesterday in the southwestern region of the Commonwealth, an area that has pleaded for fixes to the 325-mile-long highway.

Multiple bills were patroned during the 2019 legislative session to secure funding for the proposed $2.2 billion in improvements, but nearly all faltered. Notably, lawmakers in Richmond, after receiving the Interstate 81 Corridor Improvement Plan adopted late last year by the Commonwealth Transportation Board (CTB), decided to move forward with the creation of the Interstate 81 Committee to further study different avenues of funding and the prioritization of certain projects.

The legislation was put into place following backlash from the idea of implementing tolls on I-81, charging 17 cents per mile for trucks and 11 cents per mile for other drivers. Car drivers – but not truckers – could purchase a $30 annual pass to travel the length of the corridor.

The Roanoke Times reports that the governor is proposing an increase in tractor-trailer registration fees to begin later this year. Northam is also moving to increase the diesel tax to 2.03 percent of the statewide average wholesale price per gallon beginning in July 2021, from which the revenue would be distributed to projects statewide.

Specifically, for I-81, localities within the surrounding areas of the corridor would see the regular gas and diesel tax elevate, with a 2.1 percent wholesale tax added.

Transportation Secretary Shannon Valentine estimates the proposed changes to current legislation would generate approximately $150 million a year for I-81, just a fraction of the $2.2 billion needed for 72 projects identified by both the CTB and the Virginia Department of Transportation (VDOT). The plan was cut down from the original $4.25 billion in “immediate” projects (105 of them) to completely rectify roadway infrastructure problems on the main highway artery running through the western part of the Commonwealth.

The General Assembly will convene on Wednesday to discuss the amendments, as well as changes to other legislation and vetoes from the governor. For alterations to funding mechanisms for I-81, some lawmakers are cautious to proceed because the public does not have an opportunity to weigh in in such a short time frame.

A majority is required to pass through the amendments – Republicans hold a slim, 51-49 majority in the House of Delegates, and a 21-19 majority in the State Senate.

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