Transportation Plan Advocated by Virginia Gov. Kaine Dies in Committee

WASHINGTON - Virginia Gov. Timothy Kaine's transportation plan died in the legislature yesterday after the House Rule Committee refused to let it come before the full House.

And while the Senate approved legislation that would increase the state's gas tax, the Rules Committee sent it to the full House without a recommendation, giving it little chance of approval by members in that chamber.

The decisions mark a standstill on transportation funding in the state, just as Virginia's mounting transportation needs were highlighted late last week when the Commonwealth Transportation Board approved a six-year plan that would cut hundreds of projects and transfer $2.75 billion from the state's transportation construction fund to its transportation maintenance fund.

The Senate bill, proposed by Senate Majority Leader Richard Saslaw, D-Fairfax, would increase several taxes including the statewide gas tax by one cent per gallon, the tax on purchasing a car by 0.5%, and the state sales tax by 0.25 percent. According to Saslaw, the tax increases would bring in about $450 million a year.

The House took no action on the bill yesterday and but reconvenes today at 10 a.m. Even if they take it up, Republicans are expected to oppose it because they are against tax increases.

Kaine's bill would have raised about $1 billion per year over the next six years through tax increases and also would have revived the Northern Virginia Transportation Authority's ability to issue bonds. It also would have directed revenues from several tax increases to the beleaguered transportation maintenance fund, which is so underfunded officials have to tap the construction fund every year just to keep up with maintaining the state's roads.

Kaine's plan would have increased the retail sales and use tax in the northern Virginia and Hampton Roads regions by 1%. The regional sales taxes collected in northern Virginia would have totaled about $306.3 million in the first year and would have been dedicated to the NVTA, restoring its ability to issue bonds, which it lost in a February state Supreme Court ruling.

The proposal would also have increased the existing statewide motor vehicle sales tax to 4% from 3%, increased the statewide annual vehicle registration fee by $10, and dedicated the revenue from both to road maintenance.

Lastly, the proposal would have created a "transportation change fund," which would have increased investment in transit and rail, and funded research into "innovative solutions" to reduce traffic congestion. The fund would have consisted of revenues from an increase in the statewide grantor's tax, imposed on homes being sold.

Republicans in the House had made it widely known during the past few weeks that they were against statewide tax increases of any kind.

With the governor's proposal ruled out, the transportation board will have to follow through on its plans to ax about $1.7 billion of planned and proposed northern Virginia road projects and delay additional projects across the state that carry a price tag of about $400 million.

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