Va. House GOP to Propose Transit Funds

$300 Million Plan Set to Be Unveiled Today Steers Clear of Tax Increases

RICHMOND, Feb. 9 -- House Republicans will offer a transportation financing plan Friday that increases spending on roads and transit by at least $300 million a year and directs that money to Northern Virginia and Hampton Roads, according to sources familiar with the proposal.

The plan would also scatter the fruits of the state's surplus across the rest of the state to accelerate the completion of specific transportation projects that have been on the books for years.

House leaders will acknowledge that their proposal falls far short of the $1 billion a year in higher taxes and fees suggested by Gov. Timothy M. Kaine (D) and some in the Republican-controlled Senate. But they plan to argue that the House Republican package would be less onerous for taxpayers and better targeted to the state's most heavily congested regions.

In a floor speech Thursday, one delegate defended the approach, saying House Republicans will not accept a "false choice" -- that the only way to raise money for road and rail projects is through tax increases.

"Is there . . . a better plan? One that won't burden Virginians with a multibillion-dollar tax increase?" said Del. Robert D. "Bobby" Orrock (R-Caroline), who defied his caucus's anti-tax orthodoxy in 2004 and voted to raise revenue for schools, health care and public safety. "You can be, as we all know, for transportation solutions and opposing, at this juncture in our legislative process, any kind of transportation tax hike plan."

House Republican leaders met in a closed-door session Thursday night to brief rank-and-file GOP members on the plan and to consider final details, said sources who spoke on condition of anonymity because the plan has not been released publicly.

The issue is touchy for House Republicans. Voters in traditionally GOP areas of the state recently have supported Democrats who have promised to act on congestion. At the same time, the Republicans' anti-tax philosophy appeals to their base of support.

The House GOP proposal will not include any new tax increases or divert large sums of money from the state's general fund, which pays for schools, health care, colleges and public safety, sources said. The transportation money would come largely from new fines on bad drivers and from taxes on auto insurance premiums that are already collected. One delegate said the plan probably will include an increase in other transportation-related fees as well.

A portion of the House plan will be a call to borrow money based on the new streams of revenue so the state can finance regional projects more quickly, a delegate familiar with the plan said Thursday. The delegate said this would give high-congestion areas in Northern Virginia and Hampton Roads an opportunity to quickly address their burgeoning needs.

House Speaker William J. Howell (R-Stafford) and his caucus have been under pressure from Kaine and transportation advocates for weeks to offer a comprehensive proposal to ease gridlock. The House's plan appears to address the GOP's dual concerns of easing congestion in the state's two most populous areas -- where transportation is a potent political issue -- while at the same time rejecting calls from Kaine and the Senate for higher taxes.

The House has already outlined plans to tweak zoning laws and institute changes at the Virginia Department of Transportation to help ease congestion.

A Senate plan offered last month would raise taxes on gasoline and the sale of cars and would increase auto registration and other fees. Kaine has proposed raising the cost of auto registrations and taxes on new cars and auto insurance premiums. Kaine's plan would also increase fines on bad drivers.

In a speech to more than 500 local government officials Thursday, Kaine said he was eager to hear the details of the House plan and promised to compromise "if somebody's got a better idea."

But he warned that he will not accept a plan that diverts large amounts of money from other programs.

He urged local leaders to fight for that principle so that programs they care about are not sacrificed to make room for transportation spending.

"If you care nothing about transportation, but education is your passion, this battle is about you, because what we are going to be deciding . . . is whether to find dedicated revenue for transportation or invading the general fund that supports education," he said.

The governor added: "If the environment is your passion or the Chesapeake Bay, this transportation battle is about you, because we'll either find dedicated revenues or we'll crimp the monies that we've been able to devote to the Chesapeake Bay."

Lobbyists who are working on behalf of business groups said they are waiting to see the details of the House proposal. But Nancy Reed, a lobbyist for the Greater Washington Board of Trade, said it does not seem to go far enough.

"The Board of Trade has said we must have a long-term dedicated funding source to meet the needs of transportation across the state, which means at least $1 billion a year statewide," she said.