Friday, July 18, 2008
Do nothing at Virginia's peril
From the RoundTable blog
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John S. Edwards
Edwards represents the 21st Senatorial District of Virginia. He lives in Roanoke.
The recent failure of the General Assembly to pass any transportation plan for Virginia should be a source of great disappointment to Virginians. The governor, to his credit, called the legislature into special session after the Virginia Supreme Court ruled the regional authorities were unconstitutional and after repeal of the ill-considered abuser fees in the 2007 plan. He proposed a transportation package, called upon legislators to propose their own plans, and showed a willingness to work together for the common good to resolve this crisis.
The need for reform cannot be seriously questioned. The recent official six-year plan of the Commonwealth Transportation Board reduced road building by $1.1 billion, forcing a 44 percent cut in primary, urban and secondary road construction.
Most localities will see projects either delayed or taken off the six-year plan. The Salem district will face reductions of $38 million in fiscal year 2009 growing to $56.3 million in reductions in fiscal year 2014. Meanwhile, 3,000 bridges are structurally deficient, requiring more than $3 billion to repair or replace.
At least $1 billion of new transportation money is needed annually, a number not in question. The only question is: Where should the new money come from?
Since serious road building began in the early 20th century, funding has principally come from user fees, as a tax on gasoline, which is a reasonable estimate of road usage.
Tolls and fees cannot raise the large amounts needed statewide. The Virginia Department of Transportation has been significantly reformed in recent years so there are no meaningful savings to be derived there. And no one has suggested any "reforms" at VDOT that could realize significant funds, in any event.
Raiding the general fund for transportation, as some advocate, would reduce funds for education, health care and public safety. Shoring up these core services was the reason for the 2004 tax reforms, which preserved our AAA bond rating. Dipping into the general fund for roads would likely reduce teacher salaries, raise tuition further, make health care less affordable and accessible, and further strain our public safety agencies.
In devising a 21st century transportation funding plan, four principles should be kept in mind:
1. The funding should be sufficient to meet statewide construction and maintenance needs of more than $1 billion in new money annually.
2. Out-of-state drivers should share in paying for construction and maintenance of our roads. Some 36 percent of the gas tax is paid by out-of-state and commercial drivers.
3. At a time of rapidly rising gasoline and food prices, Virginia families should receive relief. The 0.5 percent food tax now used for transportation -- costing the average family of four $50 per year -- should be abolished.
4. The transportation plan should be statewide and not regional. Northern Virginia and Hampton Roads have acute congestion problems; they should not be left to pay for their needs alone. The rest of the state, in turn, relies on the wealth of those regions to meet the diverse statewide transportation and other needs of the commonwealth. We should not balkanize Virginia.
The bill I proposed in the special session would create a 21st century transportation fund with out-of-state drivers paying their fair share to meet the construction and maintenance needs of the commonwealth and hold harmless Virginia families from the rising costs of gasoline and food.
In addition to abolishing the 0.5 percent sales tax on food, the earned income tax credit would be increased so that a family of four making slightly less than $40,000 a year would receive a $471 tax credit.
Thus, by combining revenue enhancement with tax reform to provide relief to Virginian families and by having out-of-state drivers pay their fair share for driving on our roads, a 21st century transportation funding system can be achieved.
While more money is necessary, it is not sufficient. A comprehensive 21st century transportation system must also include rails: both commuter and long-distance passenger rail service and freight rail improvements to shift more freight from trucks to trains. Improved land use that is more sensitive to conservation and the environment must also be part of the solution. What Virginians cannot accept is more "do nothing" in the Virginia General Assembly.
