PRTC’s efforts to plug its budget shortfall with additional revenues from the region’s motor fuels tax failed for this year when state officials last week tabled a bill that would have stabilized gas tax revenues. This development within the state legislature shows just how critical local support is for sustaining public transportation services in Prince William County, Manassas and Manassas Park.
The Potomac and Rappahannock Transportation Commission, (PRTC), which provides commuter and local bus services, faces an average annual $9.2 million deficit, primarily because of the unexpectedly sharp and sustained decline in revenues from the region’s 2.1% motor fuels tax.
In its proposed Fiscal Year 2017 budget, Prince William County has included $6 million in funding for PRTC – it does so by establishing a separate source of funding for the Virginia Railway Express (VRE). If adopted, train and bus services would no longer have to compete for the limited motor fuels tax revenues.
“It’s vital that the public make its support for PRTC known, because the Prince William Board of County Supervisors has just started the budget review process, and there is no guarantee that PRTC funding will survive the debate,” said PRTC chairman Frank J. Principi, who represents Woodbridge on the Board of County Supervisors.
PRTC already plans to raise fares by an average of 5% and cut service in July 2016 because of its budget shortfall. Those service cuts include eliminating the Capitol Hill OmniRide route, consolidating two Crystal City OmniRide routes, eliminating select trips and some neighborhood routing on OmniRide routes, reducing Manassas area OmniLink service by 25%, and reducing frequency on all local routes.
These service cuts, fare increases, and other administrative modifications will result in a net savings to Prince William County of $1.7 million. Those savings, along with the $6 million in proposed funding from the county, would prevent further cuts to PRTC services in FY17, if the county budget is adopted as proposed. However, PRTC would still face a deficit of $2.2 million per year beyond FY17. If adequate funding isn’t found, PRTC will be forced to make even more drastic cuts, possibly including eliminating all OmniLink local bus service and operating OmniRide commuter buses only to and from Metro stations.
PRTC’s operating budget is primarily funded by passenger fares and revenues from the region’s 2.1% motor fuels tax, but those tax revenues have fallen dramatically since September 2013, when gasoline prices started declining. In fact, the loss in anticipated revenue from that tax in Prince William County alone exceeds $5 million annually. Because the tax is based on the price per gallon and because it lacks a floor – or a minimum amount to be generated – the revenues decline as gas prices decline.
PRTC had urged state legislators to pass Senate Bill 742, which called in part for establishing a “floor” for the region’s motor fuels tax and indexing the tax to February 20, 2013, when gas prices were considerably higher than they are today. The bill was approved by the Virginia Senate in mid-February but on February 26, a Finance subcommittee in the House of Delegates opted to table all further discussion of the bill to 2017.
“We were hopeful that the Virginia General Assembly would act this year to shore up the regional motor fuels tax and lessen the burden on Prince William County,” said PRTC interim executive director Eric Marx. “A stable, predictable source of funding is critical to maintaining our transit services.”
Marx noted that it is not too early for bus service supporters to begin contacting state legislators and urging them to make this a priority issue next year.
“Interestingly, when the General Assembly approved a motor fuels tax for the Commonwealth as a whole, it not only established a floor but used February 20, 2013 as the indexed date,” Marx said. “All we’re asking is that the state correct this oversight in the regional tax.”
