Wednesday, July 22, 2009
McDonnell proposes transportation overhaul
The gubernatorial candidate said his plan could bring in as much as $1.4 billion per year.
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RICHMOND -- Republican Bob McDonnell said Tuesday that he would push to privatize Virginia's liquor stores to generate revenue for transportation projects and would increase the speed limit on some interstate highway segments if he becomes the next governor.
McDonnell called for an overhaul of transportation policies and funding strategies at a time when the state is scaling back its road and transit programs because of state and federal revenue shortfalls. The Commonwealth Transportation Board voted last month to reduce the state's six-year program for road, rail and transit improvements by $1.5 billion to $7.4 billion.
Gov. Tim Kaine has failed to persuade the General Assembly to support tax and fee increases for transportation programs.
McDonnell, the former attorney general, opposes tax increases for solving the state's chronic transportation funding woes.
"We're going to use privatization, innovation, tolling, technology and other creative solutions to actually get roads built," McDonnell said. "We've been talking about it now for a long time. It's time to stop talking and start building."
Democratic candidate Creigh Deeds, a state senator from Bath County, voted last year for a proposed gasoline tax increase to boost transportation funding. But Deeds has yet to advance specific funding proposals that he would pursue as governor. His campaign argued Tuesday that McDonnell's plan could drain funds from other state services, particularly education.
McDonnell said the state can generate at least $500 million for transportation by privatizing its liquor retail operation, an idea that lawmakers have rejected as recently as this year. He also proposed imposing tolls at the North Carolina border on Interstates 85 and 95, expediting the issue of transportation construction bonds that lawmakers approved in 2007, and designating a portion of future general fund tax revenue growth toward transportation, among other things.
McDonnell said the total package could generate as much as $1.4 billion a year when fully phased in, though some of the revenue projected in his plan would not be realized until after the next governor's term expires.
McDonnell proposed plans to boost funding for the congested regions of Northern Virginia and Hampton Roads and said he would make major projects in those regions high priorities.
His plan calls for the use existing transportation funds and debt to make unspecified improvements to Interstate 81, and the use of "modest resources" to increase freight rail capacity to reduce heavy truck traffic.
McDonnell also said he would work with law enforcement and advocacy groups to implement a 70 mph speed limit on portions of I-81 and other Virginia interstates. Virginia already has a 70 mph limit on a stretch of I-85 and 32 states have limits of 70 mph.
Deeds has said he would make transportation funding a top priority next year and call a special session to deal with the issue. He outlined a series of broad goals released Monday.
The state generates transportation revenue largely from taxes on gasoline and vehicle sales and from vehicle registration fees. A 0.5 percent share of the state's 5 percent retail sales tax also goes to the transportation trust fund.
McDonnell said he would look to use some tax revenue that now goes to the state's general operating fund for transportation. McDonnell said he would dedicate 75 percent of future surplus budget revenue to transportation. And when general fund revenue growth exceeds 3 percent, the first 1 percent of additional growth would go toward transportation, McDonnell said.
The Republican also would allow Northern Virginia to keep a portion of the sales tax revenue collected in that region for transportation.
Deeds' campaign said McDonnell's approach would have to drain money from schools, public safety and other programs that are sustained by the general fund.
"There is a lot we can agree on," Deeds said. "But one thing we can't do is divert funds currently going to public schools to pay for roads."
Online: bobmcdonnell.com deedsforvirginia.com
