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Kaine promises transit proposal
Plan for legislature likely to include more than one source for more money
 
Wednesday, Apr 30, 2008 - 12:08 AM 
 
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By JIM NOLAN
TIMES-DISPATCH STAFF WRITER

Gov. Timothy M. Kaine will roll out a legislative proposal in the next 10 days to fix the state's $1 billion transportation funding gap.

"We need to respond to congestion in Northern Virginia and Hampton Roads, and to statewide fill up this maintenance deficit that we have, which is severely constricting our ability to do public transit and new road capacity," Kaine said yesterday, speaking on his monthly radio show on Washington's WTOP.

Kaine said he will present the proposal when he announces the date for a special session of the state legislature on transportation, which is expected to take place toward the end of June.

Among the transportation funding options available:

  • An increase on the state tax on gasoline, currently 17.5 cents per gallon, a level unchanged since 1986.
  • A sales tax increase to 6 percent from 5 percent, roughly the national average.
  • "Equalizing" the auto dealership sales tax from 3 percent to the state sales tax rate of 5 percent -- a proposal favored by Kaine, who says it would raise $400 million a year.

    "All issues are on the table," the governor said.

    Kaine said a gasoline tax increase "is certainly being kicked around."

    In February, the Virginia Supreme Court ruled unconstitutional the taxing power of the unelected regional transportation authorities the legislature created last year for

    Northern Virginia and Hampton Roads. That ruling leaves unfunded an estimated $550 million in transportation projects for those two regions, in addition to roughly $450 million required just to maintain the roads and highways.

    Kaine said his plan will likely have several components and not rely on simply one element to raise funds.

    "You've got to kind of spread the pain a little bit and not have it just be in one area," he said.

    One caller to Kaine's radio show yesterday, "Dave from Alexandria," suggested a gas-tax increase that would apply only on weekends. The caller said it would increase the revenue raised from out-of-state drivers passing through Virginia, who currently account for an estimated 20 percent of gas tax revenues.

    "Hmm," said Kaine, who called the proposal "a novel idea."

    Some House Republican leaders have declared that any transportation proposal that includes a statewide tax increase will be dead on arrival, but Kaine said he continues to meet with members of both parties.

    "We're doing a lot of listening," he said. "I'm going to come out with a proposal in 10 days or so and say, 'Hey guys, c'mon, let's solve this problem and do what the voters asked us to do and be leaders.'"
    Contact Jim Nolan at (804) 649-6061 or jnolan@timesdispatch.com.

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