Kaine Plan To Shield Funds Is Criticized

Transit Money Transfers at Issue

Five times Virginia leaders have taken money from the state's transportation trust fund. All five times they said it was the only way to deal with a sinking economy. And all five times the moves slowed efforts to improve Virginia's road and rail network.

Timothy M. Kaine (D), Virginia's new governor, says he is determined to prevent a sixth withdrawal and has proposed passing a state constitutional amendment that would prohibit such cash transfers. He also says he would approve new spending for transportation only if he could be sure none of it would be diverted to other services.

But the stand that helped elect Kaine in November is getting a mixed reception among some Virginia leaders who see transportation improvements as vital to the state's future. They say that, although it is important, locking up transportation funds shouldn't get in the way of raising more money.

"I don't think Northern Virginians are likely to get held up on the intricacies of an amendment," said William D. Lecos, president and chief executive of the Fairfax County Chamber of Commerce. "They're going to say: 'What did you do?' We've always said you can't wait to do the rest of the necessary improvements until [the amendment passes] because, in essence, it's a point for delay."

The amendment also could set up a fight with some lawmakers who are allies in Kaine's efforts to raise more money for new projects.

Sen. John H. Chichester (R-Northumberland), who backs a plan that would raise more than $1 billion a year in new revenue, has argued that the money should remain available for the next emergency, or at least be accompanied by a similar measure regarding the state's general fund, the main source of funding for other services, such as education.

"If you're going to lock one, you ought to lock the other," Chichester said. "A constitutional lock on either, however, I perceive as a cluttering of the constitution."

Chichester also said a lock has the potential of tying legislators' hands in years to come.

During his address to the General Assembly last Monday night, Kaine called on members to "join me in making plain to all Virginians that dedicated transportation funds will only be used for transportation." He added that "Virginia needs a constitutional amendment to protect transportation dollars permanently."

Virginia's transportation trust fund, established in 1986, consists of money drawn from taxes and fees -- gas taxes; a portion of the state sales tax; tolls; and driver's license, vehicle registration and other fees -- that pay for highway, transit, port and airport expenses.

Transportation has its own bank account because projects cost so much and take so long to build that it makes sense for them to have a dedicated, stable funding source.

But because the trust fund maintains such a healthy balance -- Virginia's is projected to be about $900 million -- it tempts lawmakers when the economy goes sour.