Study says transportation law will support 13,000 jobs over six years
A new study says Virginia’s new transportation funding plan will support more than 13,000 jobs annually and have an economic impact of $9.5 billion over the next six years.
The study, from Chmura Economics & Analytics, found that new roadway construction spending under the bill will have economic impact of $8.1 billion and sustain 10,133 jobs annually over the next six years.
It also found that new transit and rail spending under the bill will have an economic impact of $1.4 billion and support 2,925 jobs a year.
Results of the study were announced on Monday when Gov. Bob McDonnell ceremoniously signed a transportation funding overhaul that will create the first significant, sustained revenues for transportation funding in 27 years.
The plan is expected to create $3.4 billion in statewide transportation funding and more than $1.5 billion in Northern Virginia and $1 billion in Hampton Roads over the next six years.
The transportation plan:
• Eliminates the state’s current gasoline tax and replaces it with a 3.4 percent sales tax on the wholesale price of gasoline and 6 percent on the wholesale price of diesel.
• Increases the state sales tax from 5 percent to 5.3 percent.
• Increases the car sales tax from 3 percent to 4.15 percent.
• Creates a $64 annual feel for drivers of alternative fuel vehicles.
• In Northern Virginia, adds 0.7 percent local sales tax, 15 cents per $100 of assessed value of a home sale and a 2 percent hotel tax.
In Hampton Roads, adds 0.7 percent local sales tax and a 2.1 percent fuel sales tax.
“This legislation will ensure that Virginia’s economy can grow in the years ahead, and that businesses will have the infrastructure they need to create the good-paying jobs Virginians deserve,” McDonnell said in a statement.
The funds will:
• Generate more than $1.8 million for maintenance.
• Increase construction spending by more than $2.4 billion.
• Raise for Virginia’s transit providers by $509 million.
• Provide more than $256 million for intercity passenger rail.