Transit Funding On Hold Until Suit Is Settled

Democrats and some Senate Republicans want to increase taxes statewide, but they disagree on whether to increase the gasoline tax, sales tax or other revenue sources.

House Republican leaders, who oppose a statewide tax increase, want to encourage public-private partnerships, in which companies would pay for some projects on roads and bridges in return for the ability to collect tolls.

House Majority Leader H. Morgan Griffith (R-Salem) said he was "disappointed" and "surprised" to learn the bonds were not being issued and accused Kaine of trying to make a case for his tax increase. "It's politically motivated," Griffith said. "He's playing games."

More than a dozen taxpayers from across the state, including wealthy conservative activist Paul Jost, filed a lawsuit in August in Richmond Circuit Court that argues the bonds should not be issued without a referendum by the voters, said Patrick McSweeney, the attorney who filed the lawsuit.

Democrats said it is not unusual to postpone issuing bonds while a lawsuit is pending and that more can be issued to make up for the delay later after the lawsuit is resolved. They dispute that the decision was politically motivated.

"That's absurd," said Senate Majority Leader Richard L. Saslaw (D-Fairfax). "That's simply not so. It's almost silly."

Republicans, including Attorney General Robert F. McDonnell, frequently mention the bill's benefits, including the bonds. Most did not know until recently that the bonds were not issued.

McDonnell, who was out of town Tuesday, declined through a spokesman to comment.

David Clementson, a spokesman for McDonnell, said numerous cases have previously determined bonds can be issued without a voter referendum.

"Despite the delay, outside bond counsel and this office are working with VDOT to ensure a favorable resolution so the bonds are issued as soon as possible to address the transportation needs as directed by the General Assembly," he said.