General Assembly to tackle money for roads in expected special session

By JIM NOLAN AND OLYMPIA MEOLA
RICHMOND TIMES-DISPATCH
Published: April 24, 2008

Now it’s time for Virginia legislators to hit the roads—and find a politically palatable fix to the state’s $1 billion transportation funding problem.

Gas tax? Statewide sales tax? Regional tax? Auto sales tax? Titling tax?

They’re all on the table for lawmakers to consider between now and when they meet again in a special session on transportation, which Gov. Timothy M. Kaine is expected to call at the end of June.

The problem is, lawmakers can’t agree—even within their own parties—on the best route to remedy funding gaps.

The gaps include a projected $450 million hole in the state’s maintenance budget and roughly $550 million gap for transportation needs in Northern Virginia and Hampton Roads. The regional gap arose when the Virginia Supreme Court in February struck down the taxing power of unelected transportation authorities.

Kaine spokesman Gordon Hickey said the governor wants a “statewide, simple, sufficient” plan. He wants to fix the two regional authorities but also wants a statewide plan for maintenance.

Some form of tax increase is inevitable, said Sen. Richard L. Saslaw, D-Fairfax, the Senate majority leader.

“We’ve been searching for the last 20 years to find a contractor willing to lay asphalt for free,” he said. “We haven’t found one yet.”

The Senate earlier this year passed legislation, sponsored by Saslaw, calling for a 1-cent increase in the gasoline tax in each of the next five years. The bill was rejected by the House.

House Democrats instead have floated the idea of an increase in the statewide sales tax, now 5 percent.

But some lawmakers are concerned that fixing transportation with a sales tax increase would deplete funding for education, health care and public safety.

“There’s a lot of resistance,” said Sen. Kenneth W. Stolle, R-Virginia Beach. “We don’t want to dry out the well so we can’t use it for general fund dollars.”

House Republicans, meanwhile, say the General Assembly should only focus on a fix to fund the transportation needs of the two regions.

Del. David B. Albo, R-Fairfax, has suggested that lawmakers could replace the transportation authorities by having localities in the two regions raise money for their projects.

He said he’s willing to pay more if the dollars stay in the neighborhood.

“I’ve agreed to raise my own money,” said Albo. “I’m not sending my money to southern Virginia.”

Del. Ward L. Armstrong, D-Henry, the House minority leader, wants a statewide plan.

“I represent part of Virginia, too, and we’re entitled to our roads and our transportation as well, particularly because it’s economic security for us,” he said.

Armstrong prefers a sales tax increase—exempting food and drugs—over a gas tax increase.

Sen. Mark Herring, D-Loudoun, said lawmakers “should be handcuffed to our desks until we come up with a significant way to address the transportation needs of the commonwealth.”

Contact Jim Nolan at (804) 649-6061 or .

Contact Olympia Meola at (804) 649-6812 or .