The Virginia Department of Transportation (VDOT) will advertise an estimated $1.1 billion in construction and maintenance projects during the first six months of Fiscal Year 2011. The estimated economic impact of this work is 33,900 jobs created or supported, as well as $2.83 billion in economic activity and $282.5 million in taxes that come back to the Commonwealth.
Speaking about today's announcement, Governor McDonnell commented, "After taking office, I directed VDOT to start authorizing and advertising projects in a more timely and efficient manner, in order to get much needed road projects underway, and traffic moving again. In just six months, the agency will have advertised $1.1 billion – half of its annual budget. This will have a positive impact on Virginia's infrastructure and economy. For every $100 million spent on highway maintenance, it is estimated 3,000 jobs are created or supported. By working hard to ensure that VDOT invests all available transportation resources as soon as they become available, and in a manner that has the most benefit to motorists traveling throughout the state, we will greatly improve our transportation system and spur economic growth."
Secretary of Transportation Sean Connaughton also noted, "In December alone, VDOT will advertise more than $500 million in work. We have advertised more than 350 projects in the last six months. This will make significant headway toward addressing pavement and bridge needs, and will create jobs in this down economy."
According to studies published by the Federal Highway Administration and the American Association of State Highway Transportation Officials, every $100 million spent on highway construction and maintenance projects adds 3,000 jobs created or supported, $250 million in economic activity and $25 million in taxes that go back to Virginia coffers.
McDonnell directed VDOT to more quickly initiate transportation improvements. A recent independent audit of the agency criticized its ability to move projects through the pipeline. VDOT and members of the McDonnell administration have been developing new business practices that speed the investment of transportation funding.