The department's name is changed to the Virginia Department of Highways and Transportation, adding rail and public transportation to its jurisdiction. A special session of the General Assembly expands revenue sources for transportation, including a new emphasis on airports and seaports. Legislators also expand the transportation board from 12 to 15 members and rename the agency the Virginia Department of Transportation. The General Assembly enacts legislation to create special tax districts to finance high cost transportation improvements. Virginia's first special tax district is created in 1988 to upgrade a heavily congested section of Route 28 near the Dulles Airport in Northern Virginia.
Legislators allow private companies to build and operate for-profit toll roads.
The move is expected to promote economic development in Southern and Southwestern Virginia. The General Assembly designates that the Secretary of Transportation will act as chairman of the Commonwealth Transportation Board. The Commonwealth Transportation Commissioner becomes vice-chairman. This increases the Transportation Board to 16 members. The General Assembly elevates VDOT's Rail and Public Transportation Division to department level, reporting directly to the Secretary of Transportation.