Reserve Fund for Roads Proposed

House Panel Says Plan Could End Impasse Quickly

RICHMOND, April 3 -- A House of Delegates panel has proposed breaking Virginia's budget impasse by putting off debate over transportation funding until the fall.

The idea was rejected immediately by leading senators and Gov. Timothy M. Kaine (D), who say now is the time to decide whether to raise taxes to pay for road improvements.

But the House Appropriations Committee unanimously approved a two-year state spending plan Monday that would include a $1.03 billion reserve fund for transportation. Delegates proposed returning at a later date to discuss how to spend the funds and whether to raise taxes to increase the amount.

By carving out transportation from the budget, House leaders said, they could come to an agreement with the Senate in other areas such as health care and education in a matter of days.

"Vital issues are being held hostage by the Senate's refusal to back off their unnecessary tax hike," said House Speaker William J. Howell (R-Stafford).

Unable to agree on spending for transportation, the General Assembly adjourned its 60-day legislation session March 11 without adopting a budget. Since March 27 , the two sides have been meeting in a special session to break the deadlock. Virginia must have a budget by July 1 or risk a government shutdown.

Senators have proposed a package of increased taxes and fees that would raise close to a billion dollars a year for transportation. The House's reserve account mostly would be made up of surplus money that would fund projects over the next two years.

Senators responded that construction and a mounting maintenance bill for roads need a source of continuing funding. They said the House's suggestion showed that delegates do not understand the urgency of the traffic problem.

"This move sends a very strong message that they don't see this to be as important as those of us who are stuck in traffic in Northern Virginia do," said Sen. Jeannemarie Devolites Davis (R-Fairfax).

But House members said local schools and governments need to know soon how much funding they will receive from the state.

They said senators had violated tradition and maybe even the state constitution by weaving tax increases into their budget.

"I don't think there's anybody who has said transportation doesn't need to be talked about," said Del. Phillip A. Hamilton (R-Newport News). "What we're saying is, it doesn't need to be talked about by holding the state budget hostage."