February 20, 2006
As it is often stated, we should be careful what we ask for because sometimes, we might just get it. This witticism could easily apply to the current discussion we are having in Richmond regarding transportation funding. Thankfully, we are only at the half way point in the process.
As I have said to many, all of the transportation plans proposed early in the Session were bad. The one offered by Governor Kaine was the worst of all. His proposal would have paid for road improvements with taxes that only Virginians would pay. The House proposed raising money by borrowing against funds they hoped to get in future years. This plan relied on the assumption that the economy will be good for many years to come. The Senate plan as first proposed was almost as bad as the Governor's. The original Senate plan, like Governor Kaine's, would have raised the tax on cars and on the fuel to operate those vehicles.
As I heard from my constituents about the transportation situation, several messages came through very clearly. One was that no one wants to pay more in taxes, but if we must have more money for roads, it should weigh most heavily on the rapidly growing parts of the state.
Additionally, they believed that those from out of state that use our roads should pay their portion of the bill.
Therefore, when myself and other members of the Senate said we had no reason to support any of the proposals, the Senate Finance Committee made major changes that - while not great - are a vast improvement. Most of those changes were made to address the concerns of Senators from more rural districts that are not directly affected by the traffic problems of the high growth areas like Northern Virginia and Hampton Roads. We are however impacted by the tax revenues that are collected from the booming economy of northern Virginia. Our schools could not compete if we did not receive state money raised from that region. Likewise, more jobs have recently been created statewide from distribution operations. Efforts to get goods into and out of the ports of Tidewater are important as we try to replace some of the jobs that we have lost in manufacturing in the last decades.
The new Senate proposal that we dealt with on Friday, shifts most of the costs of the Senate transportation proposal to areas that are growing and are seeing exploding real estate values. An increased grantor's tax of 10 cents would be placed on the sale of homes. Currently if you sell your home the grantor's tax is 20 cents per $100. This amount has not changed in over a generation. This money would stay in the county where the sale takes place to be used for transportation only.
Another proposed change would allow for a 100% rebate for any additional gasoline taxes. This proposal was nicknamed the WRVA or Frank Ruff amendment, depending on to whom you talk. I heard a radio caller suggest this as I was driving to the Capitol one morning. The caller thought it would be a good way for out-of-staters to pay their share since they account for 25-30% of Virginia's traffic. I passed it along and forgot about it until the Senate Finance offered it as an amendment. If approved, families would simply have to save their gas receipts and send them to the state twice a year to receive a 100% rebate.
There are other elements of the Senate transportation proposal, but it is too early to tell what the final transportation package will be. As I mentioned earlier - this is only half time. The transportation plans proposed by the House and Senate will not at all resemble the finished product. When all the details are worked out, I assure you that I will not support any plan that takes the money that would currently come to our region for road improvements and sends it to Northern Virginia or other areas of the state. Likewise, I will only support a plan that places the majority of the burden on the areas in need of transportation dollars and requires that out-of-state drivers pay their fair share.
As always, I encourage you to contact me if you would like to discuss transportation or any other issues during the General Assembly by telephone at 804.698.7515 or by email. You can also send me a letter to P.O. Box 396, Room 307, Richmond, Virginia 23218.