Big business wants Virginia to spend big bucks on transportation.

Twenty-one groups, including chambers of commerce, and construction, real estate, insurance and road-building organizations, are urging Gov. Timothy M. Kaine and the General Assembly to finance highways and mass transit with $1 billion in new sales or gasoline taxes, or a combination of the two.

"We believe the commonwealth's transportation infrastructure is a critical component of its economic success and the quality of life of all Virginians," the groups -- joined by four health-care, local government and public-safety associations -- said in a letter yesterday to Kaine and lawmakers.

Pressure from the business and professional sector for a remedy to the state's continuing transportation-financing dilemma is expected to intensify in the run-up to next month's special session of the General Assembly.

However, the letter appeared to strengthen the resistance of anti-tax Republicans who control the House of Delegates and favor only tinkering with a regional road-financing program to comply with a February ruling by the Virginia Supreme Court.

"They're supposed to be the voice of business," said House Speaker William J. Howell, R-Stafford, noting that the tax-increase appeal had not been backed by small business. "I don't see how it helps business to increase their costs."

Kaine, expected to announce a new transportation-finance plan by Monday followed by town hall-type meetings Tuesday and Thursday in traffic-clogged Northern Virginia and Hampton Roads, welcomed business' support.

"The governor is taking input from all interested parties," Kaine press secretary Gordon Hickey said.

Also yesterday, Kaine discussed a fiscal fix for highways and mass transit in a private meeting with about 12 Senate Democrats, including Majority Leader Richard L. Saslaw of Fairfax and Mary Margaret Whipple of Arlington, head of the Democratic caucus.

"We're working with the House Democrats to try to fashion a plan, and we hope our Republican colleagues will be cooperative and hopeful as well," said Sen. A. Donald McEachin, D-Henrico, as he left the hourlong session.

The Commonwealth Institute, a liberal think-tank that correctly projected a $1 billion shortfall in the state budget, said it would urge legislators to consider credits for low-income Virginians to offset the cost of a higher sales tax. Some Democrats are circulating a similar proposal.

The business groups did not recommend a specific increase in the gasoline tax, which last was raised in 1986 to 17.5 cents per gallon. But the organizations backed 1-percentage-point increase in the sales tax, pushed to 5 cents on a dollar in 2004 under Gov. Mark R. Warner.

They also said the legislature should bring tax-collecting powers for Northern Virginia and Hampton Roads authorities to finance regional improvements in line with the Virginia Supreme Court's edict.

"Analysis of Virginia's severe transportation-funding needs has been ongoing for over a decade," the letter said. "All of the arguments have been made. The needs are great, and the time for action is now."
Contact Jeff E. Schapiro at (804) 649-6814 or jschapiro@timesdispatch.com.