House Panel In Va. Kills Tax Increase To Aid Roads
Assembly Returns For 3-Day Session

By Amy Gardner and Tim Craig
Washington Post Staff Writers
Wednesday, September 27, 2006

RICHMOND, Sept. 26 -- A panel of lawmakers on Tuesday defeated Northern Virginia's key proposal to improve the region's roads and transit system, dimming hopes that the General Assembly will agree on significant transportation relief during a three-day special session that begins Wednesday.

The House Finance Committee rejected 17 to 5 a plan that Northern Virginia political, business and civic leaders have promoted as the only means of ensuring lasting improvements to ease the state's growing traffic problems. Under the proposal, pared recently to improve its chances of passage, $414 million a year would have been raised and spent in Northern Virginia and the state's other traffic-clogged region, Hampton Roads.

But a decisive majority of lawmakers on the committee -- including six from Fairfax and Prince William counties -- voted against raising taxes to finance the plan, most of them saying the state can pay for roads through existing revenue or bond sales.

"I find it interesting that so many people think the only way to solve the transportation problem is to raise taxes," said Del. Jeffrey M. Frederick (R-Prince William). "They say they are not going to dedicate any more money for roads unless it comes from a tax increase. That's silly."

The panel's action could set the tone for the session, whose sole purpose is to solve Virginia's traffic problems. Although advocates said a compromise is possible by week's end, the committee's vote signals that the Republicans who control the House of Delegates have not softened in their opposition to tax increases.

"This is Round One," said Del. David B. Albo (R-Fairfax), a leading supporter of the proposal. "I'm hoping that by Friday, something between [my bill] and the Republican leadership position survives."

The lawmakers are returning for a rare fall session because they failed to come up with a transportation plan earlier this year. Gov. Timothy M. Kaine (D) and Senate leaders had agreed on a statewide tax increase to pay for more roads, but House Republican leaders blocked the plan, saying voters did not want more taxes. The disagreement over whether to raise taxes delayed agreement on the state budget for more than three months.

One proposal did survive Tuesday. The House Appropriations Committee approved a plan that would generate $2.4 billion over six years with existing revenue and bond debt but no tax increase. A proposed $1.5 billion bond issue would need voter approval in the November 2007 election.

Kevin Hall, a spokesman for Kaine, said: "It's disappointing that the House majority is refusing to consider new revenue for our obvious transportation challenges. Their answer appears to be borrowing and diverting money from public schools, colleges, public safety and public health. That is no way to pay for a 21st-century transportation network."

The six Northern Virginia lawmakers who opposed the tax proposal for their area were Frederick, C. Charles Caputo (D-Fairfax), Timothy D. Hugo (R-Fairfax), Robert D. Hull (R-Fairfax), L. Scott Lingamfelter (R-Prince William) and Stephen C. Shannon (D-Fairfax).

The three Republicans have said publicly that they oppose new taxes for roads. Not so the three Democrats. Shannon said he had been prepared to vote for Albo's proposal, except for a provision to divert $167 million from schools, health care and public safety to roads.

"What I don't want to do is raid money we spend on core government services," Shannon said.

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.