Va. Senate Kills “Royalties for Roads” Legislation
By Krystle Weeks | Thursday, February 11th, 2010 | PolicyYesterday, there was a heated debate in the Virginia State Senate about legislation that would decide how the Commonwealth would spend the royalties from drilling offshore for oil. SB 601, patroned by Sen. Frank Wagner (R-Virginia Beach), was killed by the Senate in a party line vote and was referred back to committee until next year.
The Washington Post reported that this bill was one of Governor Bob McDonnell’s top priorities, as the royalties received from drilling for oil off the coast of Virginia would have funded transportation projects/improvements. Virginia deserves to keep the royalties, and this measure would have ensured that Virginia would receive those funds, especially if Congress would change the law.
This also spurred response from Republican Party of Virginia Chairman Pat Mullins about the party line vote.
“For the life of me, I can’t understand why Democrats in Northern Virginia and Hampton Roads would vote against sending additional money to transportation.” Mullins said.
“In its original form, SB 601 was something that should have made everyone happy — more money for roads that doesn’t come out of taxpayers’ pockets,” he said. “Yet for some reason, the entire Democrat Northern Virginia delegation voted on Monday to send that money to the General Fund. It simply defies logic.”
“Then, when Democrats had the chance to re-think their vote on Wednesday, they went the opposite direction and moved to kill the bill outright on a party-line vote,” Mullins said. “Senator Dick Saslaw went to great lengths to talk about how the money that would be parceled out is nothing but ‘false hope.’”
“But it’s important to remember that ‘false hope’ is what they called offshore drilling just a few years ago. Now, the only thing between the Commonwealth of Virginia and that ‘false hope’ is foot-dragging at the Obama administration’s Interior Department. If anyone is perpetuating false hope it is the Obama administration – not Republicans in Virginia,” he said.
“At the end of the day, the Democrats talk a good game about transportation, but when the rubber meets the road, they’re not interested,” Mullins said. “The only money they want to spend on roads is money that they raise through higher taxes on hard working Virginians.”
The debate will continue again next year. In the meantime, we are left to wonder where the funds for transportation projects will come from, especially considering that the transportation budget has been shot due to snow removal costs. If the Democrats in the State Senate get their way, it will come in the form of higher taxes.
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Growing up in Maryland typically does not yield a Republican. Fortunately, Krystle Weeks was one of the lucky few booted to the Commonwealth for her staunch conservative views. From an early age, she has been debating politics, and since 2006, she has been involved here in the Commonwealth helping Republican candidates to victory. Aside from politics, Krystle is a runner and a dynamite cook. You can email her here. Krystle also blogs at Crystal Clear Conservative and Charm Offensive Cooking.
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21 Responses to "Va. Senate Kills “Royalties for Roads” Legislation"
Is Mullins serious? We have a transportation crisis right now. Even if Sec. Salazar were to recklessly approve drilling off Virginia’s coast starting in 2011, it takes 8 to 12 years to develop a new oil or gas field. Obviously, that’s not a reasonable source for transportation funds needed right here, right now.
Is that all Republicans have as far as transportation funding plans? It would almost seem so given how much fuss this bill’s defeat is getting. Yikes!
Eileen, have you bought your wind-powered car yet, or are you still polluting the atmosphere with your fossil fuel model?
eileen: parts of the Commonwealth do indeed have transportation problems. but why didn’t these legislators think ahead? didn’t they think we would need roads 10-15 years from now? or do they know something we don’t?
i have to go with Mullins on this one.
Not to be deterred, this morning, Senator Frank Wagner and other members of the committee announced a substitute bill to tax fairy dust. Speaking for the assembled members of his caucus, he indicated that it was thought that fairy dust was plentiful, cheap, and available throughout the Commonwealth, and has the added benefit of being a friend to the environment if used in limited quantities. Informed by a reporter at the news conference that the Federal government had not yet acted to create the rules for mining this product, Wagner immediately launched into an attack on President Obama for dragging his feet on potential new revenue resources. And so it goes.
This was a bad move by Dems IMHO. The voters have no illusions about Virginia’s off-shore drilling prospects. What they do expect is that our legislators and congressional representatives create the political conditions to explore and rightly use our natural resources thus creating an environment of job creation and energy independence.
The Dems appear to have put off for another year the prospects of making this a reality. Voters are tired of the 8-10 year excuse and want our legislators to move forward and quit politicking on this issue. If the Dems can’t move forward on off-shore drilling what makes us think they will move forward on nuclear energy or energy independence in general?
Democrats are looking like the obstructionists here. If this were a “Green Jobs” issue Dems would be crawling all over themselves. Virginia needs jobs not more politicking. Meanwhile our service men and women will put their lives on the line overseas for another 8-10 years.
Eileen, Bonds can be issued using a committment of future tax revenues gained from future gas and oil retrieval and sales. Bonds can offer immediate transportation funds using future state income gained from commercial development of Virginia’s natural resources.
Like “using revenue from expanded use of the ports and Dulles airport” to fund roads, this was another dodge to avoid actually doing anything about the transportation problem. Dedicating non-existent revenues to road building doesn’t really solve the problem.
Reid: I wouldn’t want my money in any financial insituation stupid enough to lend money on the prospects of Virginia ever seeing a dime in revenues from gas and oil drilling.
Yes, reminds you of Governor Gilmore issuing federal revenue anticipation notes and counting that as new revenue instead of classifying it as a note that had to be paid back. How business oriented citizens can continue to buy into these schemes is beyond belief. Sure, you can continue to fool the general citizenry, but business folks? Come on.
Town Center’s TIF didn’t seem to bother you, Mike.
The VA Dems apparently had not completely worked out the amount of the Federal kickbacks needed for approving the environmental permits to let this go forward.
There are also looming issues of State vs Federal sovereignty off the Virginia coastline as many Federal agencies from fisheries, Corps of Engineers, NOAA and others have overlapping jurisdictions from the mouth of the Chesapeake Bay out to and beyond the 100 fathom curve. Lots of fingers in this pie and all of them want a piece.
No Brian, it did not. And if you are as anti tax as you say, the contribution of close to $5,000,000 annually to the tax base resulting in a one cent decrease in the tax rate should not bother you either.
Mike, I never called myself anti-tax. You’ve called me that, but then again I never had my city hand me $135,000 either.
But at least I’m consistent. I supported Town Center’s tif using the growth in revenue to pay for investments that fueled that growth. I support the port’s revenue growth paying for HRBT/Third Crossing whatever.
All you have to do is agree with yourself, Mike, and you’ll be supporting it, too.
Yes, change the subject when you finally realize that your position is absurd. Your party has presided over the destruction of the transportation system required for economic development and prosperity in Virginia. How moderate and business oriented republicans can allow this to continue is absolutely amazing to me. The tactics now employed to befuddle the public (appropriating funds that don’t exist, proposing to sell assets that make a contribution to the Commonwealth) are just further delaying tactics, but soon, voters will display their wrath. Quips from the maestro will not be enough to forestall that reaction.
My party? 8 years of non-leadership in the Governor’s mansion…Democrat, mind you.
The only voter wrath I’ve seen over the last decade has been against those who pushed tax increases. Deeds said transportation taxes were on the table, voters didn’t exactly applaud. He was handed the worst Democrat defeat in Virginia gubernatorial history.
Heck, I spent the week listening to everyone complain about the need to keep radar detectors illegal because of all the speeding going on.
This must be the first state where people can be stuck in traffic at 70 mph.
Yes, but voter sentiment can change in future elections, and it is amazing how quick things can change based upon the quantity and depth of pot holes.
How long have you been waiting for that change?
Mr. Barrett sure makes a lot of noise, but he does not refute the point I made to counter Eileen’s point – new funds for transportation can be available prior to the drilling being completed if the state committs the new tax revenues to go to the TTF and then bonds can be sold, similar to the way FRANS have been used by both Democrat Party and Republican Party administrations and General Assemblies.
So how would a rating agency value fairy dust?
Weigh in liability with that fairy dust too, Mike.
Mike, the sale of future oil and natural gas revenue bonds is probably just as much like the sale of the “fairy dust” the TOD scam you and your developer pals keep promoting … my point remains correct, selling bonds is a way to acquire new transportation funding in the near term. Gee, it is not like that hasn’t been the standard operating procedure for transportation funding for many decades.
This is not to give the impression that I agree with issuing more debt to fund our roadways, bridges, and tunnels – because I find the abuse of FRANS over the years to have been one reason we are now in the financial mess we find ourselves in, when it comes to funding our transportation system. But … it was simply a point to address Eileen’s point that the state agreeing to drilling for oil and natural gas and working to have the Federal Government agree to a revenue sharing formula is a valid strategy for adding more funding to our transportation budgets – without raising taxes – but, by collecting new sources of taxes that we do not now collect. Much like Brian Kirwin’s point to Mr. Barrett regarding TIFs – it is the same theory.
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