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$2 Billion Debt Drives GOP Transportation Plan

Gergana Bobeva and Gayland Hethcoat
Capital News Service

The GOP-proposed transportation plan announced Friday caused mixed emotions among both Democrats and Republicans. Gov. Tim Kaine urged lawmakers to work together in the creation of the final plan, instead of killing it.

To address Virginia’s road improvement needs, the proposal calls for the state to initially borrow $2 billion and to collect an additional $1.4 billion annually from state and regional funds.

The plan design calls for these additional funds to be generated by increasing vehicle registration fees and dangerous-driving charges. Long-term proposal detail calls for half of the state’s surplus be designated for transportation needs.

Kaine’s major concern about the plan was that $250 million annually would be taken away from public safety, schools and health care. Kaine also was unsure about using general tax dollars to later pay off the $2 billion debt.

“Many people worked long hours to craft the transportation proposal announced today, and I commend these lawmakers for their efforts,” Kaine said in a written statement. “Today’s announcement acknowledges that our transportation challenges are significant and statewide. It acknowledges critical, backlogged transportation needs in Northern Virginia and Hampton Roads. It acknowledges that our transportation funding challenges will require substantial additional revenue if we are to make the investments needed to promote Virginia’s vibrant economy and improve the quality of life for millions of our citizens. We have concerns about some elements of this proposal, but I recognize that this is an early – and significant – step in the legislative process.”

The plan includes an emphasis on controlling urban sprawl dominating traffic snarls concentrated in Northern Virginia. According to the plan, sprawl has had an increasingly burdensome impact on the quality of life for all Virginians, especially those in urban and suburban areas.  Ensuring that state government and localities work together, properly plan to handle growth, and employ the latest and most constructive tools in development design will go a long way toward better serving families, businesses and commuters throughout Virginia.

Three specific areas included in the plan are:

“As this discussion moves forward, my principles remain the same as those I stated in my first address to the General Assembly a year ago this week: we must use reliable, long-term funding to build and maintain a 21st century transportation system, while keeping the commitments we already have made in the areas of public education, public safety, and public health,” Kaine added in the statement. “I urge lawmakers to join us in examining the elements of these proposals in a reasonable and responsible way. I urge everyone involved in this discussion to contribute in a civil and constructive way as we all work together to choose the best elements of the different transportation proposals now being considered by the General Assembly.”

Del. Franklin Hall, D-Richmond, supported the need for change in the transportation discussions and said a combination of factors, including public pressure and the upcoming elections, dictated the plan.

“Hopefully this is a plan that we can use as a vehicle to put together a comprehensive plan that will address the transportation needs of people all across this commonwealth,” Hall said, adding that combined efforts of both parties are essential.

“I hope we can reach a compromise and that we’ll be able to join hands with not only the Republicans but all members of the General Assembly,” he said.

First District Del. Terry Kilgore (R-Gate City) served as a member of the Republican transportation discussion group which included Senators Thomas K. Norment Jr. (R-James City), Frederick M. Quayle (R-Chesapeake), Walter A. Stosch (R-Henrico), Kenneth W. Stolle (R-Virginia Beach), Martin E. Williams (R-Newport News) and Delegates David B. Albo (R-Fairfax), M. Kirkland Cox (R-Colonial Heights) and H. Morgan Griffith (R-Salem).

"After weeks of intense negotiating, the senior Republican leaders of the General Assembly have crafted a compromise agreement that will address the major transportation challenges facing this Commonwealth,” noted Kilgore.  “I am proud to be a member of the leadership team that developed a strategy empowering local authorities in the Hampton Roads and Northern Virginia regions to make transportation decisions that best suit their localities.  These regions will be able to enact funding mechanisms to address the problems that they deal with everyday.  I strongly believe that those who are impacted on a daily basis by these challenges should be allowed to propose solutions – transportation decisions are much too important to be left up to bureaucrats in Richmond.”

Kilgore added that long-delayed projects in Southwest Virginia will also be affected by passage of the transportation proposal.

“The bond package and investment in the maintenance fund at VDOT will jumpstart our important projects in Southwest Virginia,” he said.  “Out of this package, I look forward to continued work on Route 58 and the completion of Moccasin Gap.   By improving the infrastructure that moves manufactured goods produced in Southwest and Southside, our economic opportunities here at home will continue to grow.  

“I am particularly proud of this agreement because it demonstrates the commitment of those in the Majority Caucus to work together to find solutions for our constituents.   From these negotiations, we have renewed our pledge to conduct ourselves with civility and comity. While compromise agreements rarely please all sides, I think there are many positive aspects to this plan – and I look forward to seeing the finished product.  I am optimistic that this agreement marks an important milestone in our commitment to serving the citizens of this Commonwealth."

The Republican plan includes $500 million for recurring new transportation revenues from increasing general fund investment, implementing abusive driver penalties, equalizing diesel fuel tax, increasing overweight truck penalties and heavy truck registration, increasing vehicle registration fees by $10 and dedicating 50 percent of surplus funds.

The proposal also dedicates $339 million in the 2006 Budget Residual for non-recurring new transportation revenues.

A total of $2 billion will be generated from bonds for statewide major projects.

Two regional transportation authorities can also reap the benefits from the proposal if their local lawmakers choose to raise taxes. With Northern Virginia and Hampton Roads facing the most acute traffic challenges of the Commonwealth's regions, stated Republican leaders, the plan allows local governments in those areas, by an affirmative vote of their governing body, the added flexibility of raising and retaining additional revenues for critical local road, rail and transit projects. 

If every eligible locality in the respective regions opted to participate in the plan, Northern Virginia would garner an additional $383 million in additional transportation funding annually, while Hampton Roads would receive $209 million.

Additional VDOT Reforms included in the proposal are:

"This plan represents the best opportunity we've seen over the last year to enact a comprehensive package to control sprawl, reform VDOT, and jumpstart critical projects," noted House Speaker William J. Howell (R-Stafford).  "The elected officials involved – senators, delegates, the Attorney General, and others – have invested their time, applied their expertise and exercised much patience to build the consensus necessary to produce this compromise solution." 

Additional information for  this article was provided by Lisa McCarty.
 

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