Virginia has created a new dedicated fund for railroad improvement projects in response to warnings of a $2-billion funding shortfall in coming years. The fund will collect 3% of state rental car tax revenue, which is expected to total $23 million annually. An advisory board will govern the fund and recommend projects, says Karen Rae, a Virginia Dept. of Transportation official. The fund began gathering tax revenue July 1, but no money will be allocated until the end of the calendar year, she says.