Virginia Gov. Tim Kaine announced a series of changes Monday to the Republican-authored transportation funding bill that he said are acceptable to GOP lawmakers.
If the Republican-controlled House and Senate agree with the proposals, the bill will be Virginia’s first major infusion of new money for roads and mass transit in 21 years.
“I have looked at this package from a lot of different angles, and I feel very good about it,” Kaine said.
But Virginians, especially Northern Virginians, will have to pay more in taxes and fees.
The bill allows Northern Virginia localities to raise as much as $440 million a year for projects in the region.
Under Kaine’s plan, localities in the region would have to approve a series of new fees, such as surcharges on rental cars and vehicle registration, a 5 percent sales tax on auto repairs and a higher vehicle registration fee. Revenue from those sources, expected to be $340 million annually, would be used for regional projects, the Metro system and the Virginia Railway Express.
Additionally, localities have the option of imposing a higher tax on commercial real estate, a $10 vehicle registration fee and impact fees on new development that could generate another $100 million.The money raised from the optional sources would stay in the county or city where it was raised.
“This bill is not perfect, but given the state of our transportation crisis we cannot afford to stand still,” said Arlington Supervisor Chris Zimmerman, who like many local officials staunchly opposed the measure that passed the legislature in February.
The statewide component of the bill includes $3 billion in bonds, up from the $2.5 billion Republicans approved. Kaine said the additional money would help secondary roads in rural areas that have fallen into disrepair.
The governor fiercely objected to the Republican plan to use $184 million a year from the general operating fund to pay off the bonds. His plan earmarks revenue from the state’s tax on auto insurance premiums instead to pay off the bonds, but he did allocate $66 million a year from the general fund for mass transit.
Kaine said he spoke to Republican leaders of the House and Senate on Monday and they indicated they support his changes, which must be approved by both chambers to take effect. Kaine has warned that he would veto the bill if lawmakers reject his amendments.
“The major tenants of the bill look very good,” said Del. Kirk Cox, R-Colonial Heights.
