Thursday, May 08, 2008
Kaine plans special session over transportation funding
The governor will lead a series of town hall-style meetings to promote his funding proposal.
RICHMOND -- Gov. Tim Kaine will call the General Assembly into a special session on June 23 to consider new transportation funding proposals, administration officials said Wednesday.
Kaine wants lawmakers to repair regional funding plans for Northern Virginia and Hampton Roads and to approve tax increases to pay for rising highway maintenance costs throughout the state. Kaine will unveil his own transportation plan next week and begin a series of town hall-style meetings to promote the proposal in advance of the special session.
Kaine has raised the possibility of pursuing an increase in the sales tax on vehicles, a proposal that lawmakers have twice rejected during his term. He has not ruled out seeking an increase in the state's 17.5-cents-a-gallon gas tax, despite record-high prices at the pump.
Virginia's latest transportation funding debate was triggered by a Virginia Supreme Court ruling in February that invalidated the tax-collecting powers of regional authorities in Northern Virginia and Hampton Roads. The court ruled that unelected bodies could not impose the tax increases that would fund transportation projects in the two congested regions. The regional plans were key pieces of a transportation funding bill passed last year.
Lawmakers must revamp the regional funding plans to comply with the court's ruling. But Kaine has said the regional fixes will mean little if lawmakers fail to approve additional statewide revenue to pay for rising highway maintenance costs.
Virginia transportation officials reported earlier this year that a slowing economy and rising maintenance costs would force the state to divert $388 million in highway construction funds to meet maintenance needs during the fiscal year that begins July 1. The deficit could balloon to more than $575 million by 2014 unless lawmakers approve new revenue for maintenance, according to Kaine's administration. By law, road maintenance has priority over new construction.
Lawmakers from Northern Virginia and Hampton Roads met near Richmond on Wednesday to discuss needs in their traffic clogged regions. Some lawmakers from those regions have said they can support new statewide taxes for highway maintenance, but only if the regions keep the revenue they generate.
A group of 25 business and advocacy organizations sent a letter Tuesday to Kaine and state lawmakers urging them to approve transportation tax increases. The coalition, which includes the Roanoke Regional Chamber of Commerce, insisted the state needs at least $1 billion annually in new revenue for transportation. The group called for an unspecified increase in the state gasoline tax and a 1 percentage-point increase in the retail sales tax.
"All of the arguments have been made," the letter states. "The needs are great, and the time for action is at hand."





