Finance committee forwards regional funding deallocation policy to full Authority

The Central Virginia Transportation Authority Finance Committee voted to recommend to the full Authority a draft regional funding deallocation policy that would make leveraged projects eligible for deallocation if they do not secure full funding within four years.

Staff presented a cleaned‑up draft that creates a multi‑step review: the Technical Advisory Committee (TAC) would initiate review of potential deallocations, advise the Finance Committee, and the Finance Committee would then recommend action to the full Authority. Parsons said the intent is to "provide as much opportunity as possible for locality projects that are awarded regional leveraging funds to make the projects happen." The policy requires the Authority to notify affected localities and give them an opportunity to explain progress or request an adjustment before any final action.

Committee members pressed staff on how the four‑year clock works when a locality asks CBTA for additional funding. PFM advisor Christy Choi explained that if a locality requests and receives an approved adjustment in the leveraged contribution, "the timeline would start over again"; if the locality requests funds and the Authority denies the request, then the deallocation process may proceed. Members said they wanted safeguards to prevent indefinite extensions and noted that the Authority retains discretion to decline further funding.

Parsons told the committee there are currently no projects targeted for deallocation and that eligibility for deallocation is not the same as automatic loss of allocated funding. The Finance Committee moved, seconded and by roll call unanimously voted to forward the policy recommendation to the full Authority for consideration.

Next step: the recommended policy will be considered by the full Authority; staff said the next Smart Scale round will provide information on which projects — if any — might later be subject to the deallocation process.