Kaine, Assembly Leaders Support Further Discussion

Senators, Delegates at Odds Over Proposed Tax Increases

RICHMOND, May 24 -- Leaders of the Virginia General Assembly and Gov. Timothy M. Kaine have agreed that the legislature should keep working on a plan to ease traffic congestion even after resolving the stalemate over the state budget.

The discussion is likely to reignite the philosophical struggle between senators, who seek a statewide tax increase to provide revenue for roads and rails, and tax-averse GOP delegates, who say they want to focus on other methods. Kaine (D) and many senators want that discussion to begin immediately. House Speaker William J. Howell (R-Stafford) prefers to wait until summer.

A fight over transportation spending has held up adoption of a state budget for months. With a July 1 deadline looming for adopting a budget or risking a government shutdown, senators acceded to anti-tax delegates' demands and passed a budget Tuesday stripped of higher taxes and billions of dollars for transportation improvements.

Delegates will return to Richmond on Thursday to debate the Senate's new $72 billion proposal to fund schools, public safety, health care and other services over two years. Leading Republicans said they are likely to send the plan to a conference committee so senior lawmakers can start next week to negotiate a final budget deal.

Senators have challenged delegates to resolve the budget impasse quickly and move to a new discussion on transportation. They said the budget they endorsed is so austere on transportation spending that delegates would feel the heat to accept tax increases in that new debate or risk angering commuters mired in traffic.

Instead, delegates took up the challenge Wednesday, saying they are eager for a renewed debate on transportation -- but not on taxes.

House Republican leaders said they wanted a key part of the transportation special session to focus on land use and changing the state Department of Transportation, as well as dedicating revenue to transportation without raising taxes.

"You may be able to establish a long-term dedicated source of revenue without raising taxes on a statewide basis," said Del. Phillip A. Hamilton (R-Newport News), a senior lawmaker and budget negotiator. "We should put those ideas on the table."

He said House Republicans would consider regional plans to raise revenue in congested areas of Northern Virginia and Hampton Roads.

Several delegates also urged the revival of legislation to provide tools to control the development rate in fast-growing corridors, an idea popular in Northern Virginia and endorsed by Kaine.

Del. Robert G. Marshall (R-Prince William), sponsor of a bill that would have let local governments reject new subdivisions if nearby roads would be overwhelmed by additional traffic, is insisting again that growth controls are the best way to relieve traffic.

"It doesn't make sense to raise taxes when you're ignoring uncontrolled development," he said.

Kaine made the idea a key part of his first address to the General Assembly after taking office in January, but legislation quickly died in both chambers.

Kaine envisioned growth controls and tax increases to provide about $1 billion in new funds for transportation each year. On Wednesday, he, too, called for an immediate transportation debate, saying the Senate move takes away any House "excuse for inaction."

"There have been various things people have hidden behind, and now people are on stage, and the lights are on them," he said.

Senators said they are willing to consider transportation policy questions that do not involve taxes. But they said the price of asphalt and concrete is rising as cars are added to the road, and a reliable source of more money remains critical.

They have passed bills that would raise some taxes statewide and give Northern Virginia and Hampton Roads the power to raise other taxes for transportation. A House committee has tabled the bills, and senators said delegates serious about transportation should immediately take up those plans for debate.

"If you want a road system, someone has to pay for it," said Sen. Charles R. Hawkins (R-Pittsylvania), sponsor of one of the bills.

They may find some support in the House for that position. Del. David B. Albo (R-Fairfax) said he was concerned that talk about land use and improving VDOT's performance could divert attention from his call for additional spending on Washington area roads.

"I hope a lot of people won't use these ancillary things as excuses to do nothing," Albo said. "VDOT is broke, and you're not going to fix the problem unless you fix VDOT. That's going to take 10 years. In the meantime, while you're fixing VDOT, I'm stuck in traffic."

A renewed roads discussion assumes quick resolution of the budget debate for other state needs. Senators included a wrinkle in their new plan that could prove troublesome for negotiators.

They agreed to spend almost $340 million for new buses and trains and for improved interchanges and other construction -- but only if the House agrees to statewide tax increases by Nov. 1. If the House refuses to go along, the $340 million would be spent on other needs.

In that case, the state would spend almost no additional money on transportation this year -- after months of talking about nothing else.

Staff writer Steven Ginsberg contributed to this report.