Sunday, June 22, 2008
Kaine renews old road plans
Gov. Tim Kaine is calling for increased taxes and fees to fund the state's transportation.
RICHMOND -- Virginia's chronic transportation funding problems have dogged Gov. Tim Kaine since he entered office in January 2006.
"There's not been a day since he's been sworn in that he hasn't wrestled with the transportation problem in this state," said Del. Ward Armstrong, D-Henry County, the minority leader in the House of Delegates.
Just six days after his inauguration, Kaine rolled out a plan to increase taxes and fees for transportation programs. It died in the General Assembly, and lawmakers failed to produce a solution of their own.
A year later, election-minded lawmakers passed a patchwork plan that relied heavily on debt and regional tax increases in Northern Virginia and Hampton Roads, and included new "abusive driver" fees to generate highway maintenance revenue. The bill also increased vehicle registration fees and the tax on diesel fuel. Kaine signed the fragile compromise, but parts of it quickly unraveled.
Public outrage drove lawmakers to repeal the fees assessed on bad drivers. The Virginia Supreme Court ruled that unelected authorities could not impose the taxes planned for Northern Virginia and Hampton Roads.
Meanwhile, an economic downturn slowed revenue growth, forcing the state to rely more heavily on its road construction budget to cover maintenance costs for existing roads and bridges.
All of that has Kaine, now midway through his third year in office, again asking the General Assembly to increase taxes and fees for transportation.
"As long as this is a problem, I'm going to keep trying to solve it as much as I can," Kaine said earlier this month.
The General Assembly will begin a special session Monday devoted to transportation funding, but few lawmakers appear optimistic about prospects for a compromise.
"I don't believe anything productive is going to happen," said House Majority Leader Morgan Griffith, R-Salem, citing public comments made by colleagues in both houses.
Kaine will address lawmakers Monday afternoon.
Republicans who control the House of Delegates largely oppose statewide tax increases, and some only want to pass regional funding plans for Northern Virginia and Hampton Roads. House Republicans also have called for an independent audit of the Virginia Department of Transportation to ensure existing funds are being used efficiently.
"We don't want to just slay the dragon and walk off the stage," Griffith said. "There's a lot of brain power being spent on looking at alternatives."
Democrats who control the Senate favor a gas tax increase to generate new maintenance revenue, but House leaders in both parties oppose the idea.
Kaine's plan has received lukewarm support from Democrats, but the governor said he is open to other proposals.
"I've put a plan on the table," Kaine said. "I've been very willing to compromise."
The Democrat-controlled Senate earlier this year passed a gas tax increase to generate money for road maintenance, but the House Finance Committee killed the legislation. Another gas tax proposal will emerge in the Senate this week. "I don't see having a variety of legislative proposals as a handicap," said Sen. Edd Houck, D-Spotsylvania County. "I think that's an asset."
Meantime, Del. Lacey Putney, I-Bedford, has filed a bill that would increase the state sales tax by 0.5 percentage points, provided that voters approve the increase in a November referendum. Revenue from the increase would go toward highway maintenance.
With no consensus apparent, some lawmakers have questioned why Kaine would summon the legislature back to Richmond.
Kaine insists the transportation problem can't be avoided. Because of a sagging economy and rising maintenance costs, the state is diverting funds from its highway construction budget to pay for the repair and upkeep of roads and bridges. By law, maintenance must take priority over new construction.
The Commonwealth Transportation Board on Thursday approved a new six-year road plan that shifts $2.75 billion from construction to maintenance and either delays or cuts hundreds of planned projects throughout the state. The plan cuts funds for projects such as reconstructing the Elm Avenue interchange with Interstate 581 and U.S. 220 in Roanoke and widening Peppers Ferry Road in Montgomery County and delays projects such as widening segments of U.S. 220 in Botetourt County and segments of U.S. 58 between Carroll and Patrick counties.
Kaine's plan would increase the sales tax on vehicles and add another $10 to vehicle registration fees, eventually generating more than $500 million annually for maintenance needs. He also has called for an increase in the grantor's tax on home sales to fund rail and mass transit needs, and regional sales tax increases to pay for projects in Northern Virginia and Hampton Roads.
The governor has held 10 town hall-style meetings throughout the state to promote his plan, giving slide presentations that illustrate the maintenance shortfall and the projects it would affect.
"They have seen all the projects that will disappear off the six-year plan," Kaine said earlier this month while traveling to Radford for one of his public meetings.
"As long as people are sitting in traffic, they care," he said. "There's starting to be a sense of despair."
But some lawmakers say rising gas and food prices are causing bigger problems for Virginians, making this a bad time to consider statewide tax increases.
Del. William Fralin, R-Roanoke, said recently that lawmakers should pass new regional funding plans for Northern Virginia and Hampton Roads, fixing the two major components of last year's transportation bill that were effectively nullified by the state Supreme Court.
If the legislature fails to pass regional plans, lawmakers from Northern Virginia and Hampton Roads may step up efforts to grab greater shares of existing transportation revenue, Fralin said.
"They're going to try to adjust the funding formula where it is to the detriment of our constituents," he warned.
Del. Dave Albo, R-Fairfax County, already has filed legislation that would allocate maintenance revenue to the state's nine transportation districts largely on the basis of population, shifting greater portions of the maintenance budget to Northern Virginia and Hampton Roads.
Kaine said he understands why lawmakers who represent congested regions would push for such a change. But, he said, "I don't think it's helpful to get into a deep allocation debate that pits one part of the state against another."
Kaine has remained optimistic about the special session, despite the friction in the legislature. But, he said earlier this month, the outcome is up to lawmakers.
"They know what the numbers are; it's just a question of whether they want to act," he said.
"This session is more about accountability than it is about transportation."





