Subcommittee reviews governor's capital outlay and transportation proposals totaling about $2.7 billion

A Senate of Virginia subcommittee heard staff briefing on the governor's proposed capital outlay and transportation items, with staff summarizing totals, major projects and selected member amendments.

Lede: Staff said the proposed capital outlay package totals roughly $2.7 billion, including about $890 million in general-fund cash and $1.1 billion in general-fund-supported debt. The package funds maintenance reserves, deferred maintenance, construction projects across higher education and state agencies, and authorizes language for a DMV headquarters renovation.

Nut graf: Committee staff outlined programmatic priorities and singled out several projects: maintenance reserve funding, deferred maintenance for state institutions, higher-education construction and renovations, and specific agency projects (including DMV, DWR land acquisitions, DBHDS renovations and multiple university facility projects). The transportation briefing covered aviation aircraft replacement funding, a $35 million general-fund allocation for inland port site readiness in Washington County, adjustments to mass-transit capital distributions and several VDOT study and trail expansion amendments.

Details presented by staff (attributed to Tyler unless otherwise noted): - Capital outlay proposed total: approximately $2.7 billion; of that $2.2 billion is listed as general-fund support, split into about $890 million in general-fund cash and $1.1 billion in general-fund debt. - Maintenance reserve: $200 million per year in cash for maintenance reserve programs; deferred maintenance funding of about $400 million was noted. - Specific allocations mentioned include $360 million in general-fund cash for new construction, $39.9 million for capital equipment nearing completion, $12 million for tech talent equipment, and $14 million for planning projects for state agencies and higher education. - Higher-education projects and other named projects include UVA Center for the Arts (project not included for construction here), William & Mary emergency chiller replacement (handled separately), Courts Building managed by DGS, ILAR manufacturing advancement, Johnston Hall at James Madison, VCU Altria Building and dentistry school, and a new business school at Virginia Tech. - DMV headquarters language would allow DMV to sell the current West Broad Street facility at fair market value and acquire/renovate a replacement headquarters, with notification required to the six-year capital outlay plan advisory committee. - Conservation and land projects: transfer of land at Central State to the Petersburg Battlefield Foundation, DWR and DCR acquisition authority for natural area preserves and state park adjacency using dedicated special revenue and federal grants, and $6.4 million for a dam repair at Lake Shenandoah. - Transportation highlights: SB29 includes authorization to use $11 million from aviation special funds to replace an aging King Air aircraft (2007 model); SB30 proposes $35 million general fund for inland port site readiness at Oak Park Center in Washington County; language changes to align paratransit funding with 'human services mobility' and adjustments to Commonwealth mass transit and rail oversight distributions.

Member questions sought clarification on whether certain acquisitions or amendments change where funds are directed, how lease payment escalations would affect operations (one example cited a 6.2% escalation on a CNU lease), and the difference between natural area preserve acquisitions and state park land acquisitions. Staff responded that some acquisitions rely on dedicated special revenue or federal grants and that budget action can authorize property acquisition without separate legislation.

Bottom line: The briefing provided line items and programmatic context for the capital outlay and transportation portions of the governor's proposed budget, while members requested additional detail and the posted substitute language for further review. The committee adjourned after staff indicated no meeting scheduled next week to allow time for remaining bill processing.