By Anita Kumar
Washington Post Staff Writer
Wednesday, March 19, 2008; B04

RICHMOND, March 18 -- Virginia legislators are at an impasse over how to address a state Supreme Court ruling last month that wiped out much-needed money for roads and transit projects in Northern Virginia and Hampton Roads.

But the dispute has grown much larger than what to do about the Feb. 29 ruling, which overturned the ability of nonelected transportation panels in those areas to levy taxes and fees.

The Democrat-controlled Senate insists that now is the time to raise taxes to cover transportation projects across the state. The Republican-controlled House opposes a tax increase.

Del. David B. Albo (R-Fairfax) called the Senate's unwillingness to deal with the court ruling unless it gets a tax increase "absolutely and utterly infuriating." But Senate Majority Leader Richard L. Saslaw (D-Fairfax) said: "We're going to do it right this time or not do it."

The General Assembly completed its annual session last week without agreeing on how to solve the state's transportation problem or when to return to Richmond to try to come up with a solution. Legislative leaders have no plans to meet.

"There are a number of viable ways to solve this problem. We are prepared to support almost any regional approach," said Chris Zimmerman (D), chairman of the now-powerless Northern Virginia Transportation Authority and a member of the Arlington County Board. But, he said, "we can't do anything without action by the General Assembly. I'm concerned they're not moving very quickly."

Gov. Timothy M. Kaine (D) called the General Assembly into a special session, which began last week, to design a bond package to pay for construction projects at colleges and state parks. Kaine, who favors the Senate's proposal to increase transportation money, has said he expects to call legislators to Richmond for a transportation special session, but not until legislators come up with a possible compromise.

The bond special session is expected to last until April 23, the day legislators are to consider Kaine's vetoes and amendments to bills passed during the regular session.

In the regular session, legislators approved a Kaine proposal that would allow the now-powerless Northern Virginia Transportation Authority to return to taxpayers the $11.7 million it has collected this year.

The governor is expected to sign the bill and another one that would repeal the costly and unpopular abusive-driver fees imposed last year to raise money for transportation. He has 30 days to review the bills.

The General Assembly passed a landmark transportation plan last year designed to pump $1.1 billion annually into road and transit projects throughout the state. But a downturn in the economy and soaring asphalt and steel prices have diminished transportation dollars. The state will spend about the same this year as last year.

"There's nothing left," Saslaw said. Last year's bill "turned out to be a worthless piece of paper."