Governor Bob McDonnell's omnibus $3.3 billion transportation bill (HB 2527) consists of:

• Virginia Transportation Infrastructure Bank -- $400 million initially with a goal of $1 billion

• Federal GARVEE Bonds -- $1.2 billion

• Acceleration of HB 3202 Bonds -- $1.8 billion ($600 million/year for 3 years)

• Expanded Revenue Sharing -- Lifts current $1 million/project and $50 million program caps

• Establishes Intercity Passenger Rail Operating and Capital Fund

To rely on future federal funds that are totally unpredictable is not only irresponsible, it is dangerous in this unstable economic environment. The Governor is gambling on the flow of federal funding remaining the same when Washington is already looking at making cuts. This irresponsible borrowing will put future generations on the hook for billions. 

It's easy for the Governor to rationalize going into debt when he won't be around to deal with the potential consequences by the time the payments come due. The easiest way to get credit for starting a lot of projects when he has no money is to spend future money that will be the problem of future Governors.

McDonnell should take notes and learn a lesson from Maryland's transportation boondoggle. Maryland got itself into trouble with very aggressive use of GARVEE bonds for the Intercounty Connector. They dedicated future federal money to that project, but then the economy tanked and local tax receipts dropped. Since they'd bonded for the ICC, they couldn't stop that project, and instead had to cut maintenance on most existing local roads.

Virginia is getting into risky territory already with its level of debt. McDonnell argues that low interest rates and the low cost of construction make now a particularly good time to borrow. No matter how low the interest rate and construction is, borrowing on the backs of future generations during this time of economic uncertainty could have dire consequences. Governor McDonnell should take a responsible conservative approach and live within our means.