State senators supporting legislation that would have increased taxes on gasoline to fund transportation withdrew their proposal Tuesday, avoiding a potential showdown with conservative Republicans.
Meanwhile Tuesday, a competing proposal in the House, which concerned some senators because it uses money from the commonwealth’s general budget fund, appeared set to advance.
The House plan would issue $2 billion in bonds, dedicate $556 million in surplus funds and increase the vehicle registration fee, diesel-fuel tax and penalties for bad drivers to fund transportation projects statewide. It would also put $250 million a year toward transportation out of the general fund and earmark half of surpluses in future years for transportation. Northern Virginia could raise $400 million a year if every locality approved a series of tax and fee increases.
“This is a comprehensive plan to move Virginia forward,” House Majority Leader Morgan Griffith, R-Salem, said. “It is a good solution to the transportation problems facing the commonwealth.”
The House had not voted on legislation to implement the plan by press time Tuesday night, but the bill should pass because the Republican majority agreed to it.
Senate supporters of the gas-tax plan acknowledged that the chamber did not back the proposal strongly enough to engage in another fight with the House over transportation. They also knew opponents would ask Lt. Gov. Bill Bolling to declare the bill dead because of technical problems.
The House plan still needs Senate approval before it can go to Gov. Tim Kaine. Concerned Senators who questioned the House’s use of the general fund when they proposed the higher gas tax said Tuesday they hope to reach a compromise in the next three weeks.
