The U.S. House of Representatives voted last week on a rule change that could affect the state’s plan to issue $1.1 billion of grant anticipation vehicle revenue bonds. The provision could allow lawmakers to divert transportation funds to other spending projects.
Part of Republican Gov. Robert McDonnell’s $4 billion in transportation funding includes $1.1 billion of Garvees for transportation projects. Rep. Bob Moran, D-Va., said the rule change “exposes the dangerous flaws in Bob McDonnell’s deficit-spending transportation plan.”
The borrowing McDonnell wants to make is part of a transportation funding program passed in 2007 under then-Gov. Tim Kaine, a Democrat.
“Mr. Moran voted for and praised the very bonds he now doesn’t want sold,” a spokesperson for McDonnell said. Moran “leads a party that has no plan for transportation whatsoever.”
Virginia’s May issuance of $492.7 million was the first under the 2007 transportation program. The state hopes to sell up to $600 million of it this year.
