Governor Rell announced her budget for fiscal years 2010 and 2011 last Wednesday in Hartford.  With Connecticut facing a $922 million deficit, her proposal was mainly a laundry list of spending cuts, fee increases, and agency consolidations.  With the exception of a speed camera pilot program, however, Governor Rell offered little vision on how to fund the transportation system moving forward.

Rell proposed deploying four fixed or mobile speed cameras throughout the state, a fantastic program that could do much to promote safety if it is not scuttled by legislators (as it was last year). The budget also raises fees on overweight vehicles, but otherwise ignores looming funding concerns. Gas tax revenues have declined for an unprecedented four straight years in Connecticut, and perhaps the most disturbing news from her budget address was that the Special Transportation Fund (STF), which receives revenue from transportation-related taxes, fees, bonds, and other revenues, will run deficits of $102 million and $145 million in FY10 and FY11, respectively, exhausting the fund’s existing surplus by FY11.

Governor Rell missed an opportunity to call for some form of open-road congestion pricing on Connecticut’s roads, an action that in addition to generating revenue for the transportation system would reduce congestion and improve the environment.  The Transportation Strategy Board, tasked with directing transportation policy in the state, is set to receive the final report on congestion pricing from Cambridge Systematics on February 19.  Her budget address would have been an opportune time to show support for an innovative funding policy that might be a heavy political lift.

The budget did have a few notable spending increases.  Rell called for bonding $550 million to pay for the initial phase of the New Haven Rail Yard, which is needed in order to modernize Connecticut’s aging rail fleet.  The budget also includes $50 million in grants to promote regionalization throughout the state, which could have some impact on reducing local transportation costs.

ConnDOT arguably made out better than most other agencies, but the agency will lose $500,000 for rail freight projects and $237,500 for bus capital projects.  In addition, within the Department of Social Services, the budget calls for reducing funding for Transportation for Employment Independence by 25%, a drastic cut in service put upon people that can ill afford it.

After the Cambridge report is released, congestion pricing will begin moving forward on the legislative track.  Several bills that would legislate congestion pricing have been scheduled for a public hearing  in the Transportation Committee on February 23, 2009 at 10 am in the Legislative Office Building, Room 2E, in Hartford.