Tax-Relief, Transportation Proposals Essentially Killed This Year

The gas tax increase killed Monday would have helped pay for road maintenance.

The 14 to 6 vote by the Republican-controlled Finance Committee means a projected $360 million deficit in the part of the state transportation budget used to maintain roads probably will worsen in coming years. To make up for the shortfall, transportation officials have said they will have to divert money from highway construction programs.

Senate Majority Leader Richard L. Saslaw (D-Fairfax), the sponsor of the gas tax proposal, said the state will be without highway construction funds by 2016 unless the General Assembly acts.

"Sooner or later, you all are going to have to deal with this problem," Saslaw said.

But the two top Democrats in the House, Del. Brian J. Moran (Alexandria) and Minority Leader Ward L. Armstrong (Henry), helped to defeat Saslaw's proposal by voting against it in committee.

Saslaw's proposal would have raised the state's gas tax of 17.5 cents a gallon, last raised in 1986, by a penny a year for the next five years. The Senate approved the plan, which would have raised $260 million annually when fully phased in.

By failing to enact a gas tax increase, legislators have decided they won't be replacing the estimated $65 million in revenue the state would have collected from the abusive-driver fees, which the House and Senate voted this year to repeal.

In arguing against a gas tax proposal, Republicans on the Finance Committee suggested that the federal government could be getting ready to raise the federal gas tax. They also noted that regional taxing authorities in Northern Virginia and Hampton Roads, which were enacted along with the abusive-driver fees in a transportation deal last year, are just starting to go into effect.

"We did act last year, and we need to let it work, and make sure it does, before we act on this," Del. Ben L. Cline (R-Rockbridge) said.

But transportation advocates, backed by contractors, argued before the Finance Committee that last year's transportation deal largely failed to address highway maintenance costs.

Bob Chase, director of the Northern Virginia Transportation Alliance, said most motorists wouldn't mind paying a few extra cents in gas tax if it meant safer roads.

"What is 50 cents a month compared to the cost of a possible front-end alignment" for your car? Chase asked.

Moran, a likely Democratic candidate for governor next year, said he voted against the increase because it failed to garner support from Republicans. "Any effort to raise taxes has to be bipartisan," Moran said. "This was an opportunity for rural legislators to take the lead, and they chose not to."

Moran's decision could become an issue in next year's Democratic primary for governor. Sen. R. Creigh Deeds (D-Bath), who also is running for governor, voted for Saslaw's bill in the Senate.

Staff writer Anita Kumar contributed to this report.