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An uncertain budget for an uncertain time

With 2021 transportation revenue uncertain, House Transportation Committee hears idea to pass full-year budget but allocate $$ for just 3-4 months

By Guy Page

April 16, 2020 – In response to uncertain FY 2021 state transportation revenues, the House Transportation Committee Wednesday discussed a proposal to approve a full year of transportation spending but allocate only enough money for three or four months.

An April 2 report issued by Joint Fiscal Office projects a $45 million FY 2020 revenue shortfall – due mostly to drastically reduced driving and gasoline purchases – and projects unspecified revenue shortfalls for 2021. It’s possible but unknown at this time if federal stimulus/recovery funding could help recoup these losses. 

Agency of Transportation official Neil Schickner said AOT is mulling a proposal to recommend a 12 month, July 2020 – June 2021 budget, fund the first few months, then reassess needs and revenues for the rest of the year.  

The most recent (March 24) draft of the 2021 Transportation Bill features a $3.4 million reduction in highway maintenance spending. It also increases in alternative transportation such as free fare on public transportation, $2500 rebates on electric vehicle purchases for households earning up to $125,000, $4.5 million for the Lamoille Valley Rail Trail, $200,000 for EV marketing, and an unspecified amount for a pilot project to encourage employers to not drive their personal cars to work. 

The March 24 draft of the committee’s proposed 2021 Transportation budget now “on hold” includes:

Funding for electrification of transportation might get a shot in the arm from federal money, AOT official Michelle Boomhower said. “We’re going to have to wait and see what the stimulus might bring us.”

The projected 2020 revenue shortfall mostly can be addressed by using unspent funds from Amtrak and rail funding, and by reallocating savings from the suspended spring construction season, Schickner said. These measures would cover the deficit without tapping into the reserve fund – “but if ever they tap into the rainy day fund, this seems to be the rainy day to do it,” Schickner said. 

I-89 emergency culvert repair near Exit 18 in Georgia (above) is one of the few VTrans projects permitted to continue during the State of Emergency. VTrans photo.

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