Virginia would borrow $2 billion to fund transportation projects under legislation Del. Vincent Callahan, D-McLean, filed Tuesday.
Under the plan, $1.7 billion would be used to build or expand roads, and $300 million would be used for mass transit.
“The money would be allocated based on population, so a lot of the road money would go to Northern Virginia,” said Callahan, who chairs the House Appropriations Committee. “We have most of the mass transit projects, so we would get the bulk of the mass transit money, too. It is a very good bond package for Northern Virginia.”
The debt would be repaid by increasing the vehicle registration fee by $20 over two years, Callahan said. He intends the $2 billion to supplement a separate regional revenue package for Northern Virginia, which would raise $450 million a year through tax and fee increases.
Republican leaders on Tuesday continued closed-door talks with each other to come up with a plan and could be close to agreement.
“We could have something within the next 24 or 48 hours,” said House Majority Leader Morgan Griffith, R-Salem. “But it might be a week and 24 hours. It’s complicated.”
Callahan’s proposal could run into trouble in the Senate, where influential lawmakers disdain borrowing because of the long-term repayment costs.
“You could solve all of our problems through debt, except that you have this little thing called interest,” said Sen. Charles Hawkins, R-Spotsylvania, chairman of the Senate Finance’s transportation subcommittee, during a discussion of financing options last week. “Debt is not a panacea.”
