House Panel In Va. Kills Tax Increase To Aid Roads

That sentiment lies at the heart of the transportation disagreement. Just as House leaders have steadfastly opposed tax increases, so has the Senate refused to consider House proposals to use existing resources -- or borrow money -- to finance improvements.

That dispute showed no sign of dissipating Tuesday. In addition to defeating the regional proposal, the Finance Committee killed a Senate measure that would have raised as much as $1 billion a year in new taxes and fees for statewide transportation improvements.

Supporters of tax increases warned that Northern Virginia and Hampton Roads residents will pay a price for inaction.

"I'm not asking. I'm pleading. We're being choked in Northern Virginia by traffic. We have to do something about it," said Del. Vincent F. Callahan Jr. (R-Fairfax), chairman of the House Appropriations Committee. "If we don't do anything, the economy of the state is in danger of collapsing."

Added Jon Peterson of the Fairfax-based Peterson Cos., a real estate development business, "It is a crisis situation in Northern Virginia."

Even those opposed to taxes acknowledged a serious need for remedy.

"We all recognize that we have a huge problem," said Del. Harry R. "Bob" Purkey (R-Virginia Beach), chairman of the Finance Committee.

But supporters of the Albo plan called such comments "smoke and mirrors" from House Republicans who, in an effort to end the long budget impasse this year, promised to return to Richmond to deal separately with transportation.

"This was the only bill to generate any substantial, reliable, ongoing stream of revenue to address the state's transportation needs," said Del. Franklin P. Hall (D-Richmond), the House minority leader. "Of course I'm terribly disappointed, but we're going to continue to try."

Albo said that he expected the measure to fail in committee and that this is the beginning of a process which still might end with a compromise. The House borrowing package could move to the Senate, affording lawmakers additional chances to amend, compromise on and pass changes.

Whether they will vote differently than they did Tuesday is an open question, Albo said.

"At this point, I don't know," he said. "If we find out that the House will only pass . . . bills that use existing revenue, then nothing may come of this."

Sen. Charles R. Hawkins (R-Pittsylvania), the leading supporter of his chamber's $1 billion-a-year proposal, was more philosophical: "Much like the journey down the yellow brick road, I'm taking one step at a time."

In addition to the financing package, House Republican leaders are pushing several bills that would change the Virginia Department of Transportation and give local governments more authority over land use decisions. "With the approval of these bills, the House is now poised to approve the largest financial commitment to transportation in at least 20 years," House Speaker William J. Howell (R-Stafford) said in a statement yesterday.