After two weeks of this year’s General Assembly session, legislative Republicans did something that they could not accomplish all of last year: agree on a plan to increase funding for transportation.
Republicans, who control the House and Senate, decided Thursday on a plan to issue $2 billion in bonds, dedicate $556 million in surplus funds plus increase the vehicle registration fee, diesel fuel tax and penalties for bad drivers to fund projects statewide. They would also put $250 million a year toward transportation out of the general fund, something many GOP lawmakers opposed last year, and earmark half of surpluses in future years for transportation.
The statewide plan will cost drivers an additional $10 to register their cars, but shifts most of the additional fees to bad drivers and owners of diesel vehicles and overweight trucks. There are no tax increases to bring in the general fund revenue, meaning education, health care and other programs already getting general fund money will have to compete with transportation for the revenue.
Northern Virginia localities would have the ability to raise $383 million a year in additional revenue if they approve tax and fee increases, such as taxes on hotels and rental cars, a surcharge on commercial property and property with multifamily dwellings, and a $100 fee for new residents obtaining driver’s licenses.
“It is a major breakthrough,” said Del. David Albo, R-Springfield. “We figured out a way to make sure that all of the money stayed in Northern Virginia. I cannot get my constituents to buy into paying higher fees if the money’s going to Richmond.”
The agreement, which still has to be approved by both chambers and signed by Democratic Gov. Tim Kaine, comes roughly 10 months before all 140 General Assembly members face voters. Democrats, looking to shrink or end Republican majorities, have been using the lack of new transportation funding against Republicans in some districts, especially in Northern Virginia, where some GOP incumbents are considered vulnerable.
Kaine, who has publicly chided legislators for not agreeing, praised the announcement but expressed some reservations. Kaine proposed funding transportation largely through tax and fee increases, something the Republican negotiators avoided by opting for bonds and money out of the general fund.
“We have concerns about some elements of this proposal, but I recognize that this is an early andsignificant step in the legislative process,” Kaine said.
Gayland Hethcoat of Capital News Service contributed to this story.
