Connaughton changes his tune on the gas tax

By Norman Leahy | Thursday, August 18th, 2011 | Policy, Virginia

Virginia Transportation Secretary Sean Connaughton told a group of road contractors in March that the state was going to have to “adjust” the gas tax to keep it as a viable source of revenue. As “adjust” does not mean “lower” in government-speak, Connaughton was promising the assorted tax consumers that he would push for a hike in the 2012 session.

Today we learn that the Secretary is still worried about VDOT’s fund balances, but he’s backing off of his call for a gas tax increase:

The former Prince William Board of County Supervisors chairman told a Prince William Chamber of Commerce lunch crowd at Old Hickory Golf Club on Wednesday that the state’s main goal is to plug a $400 to $500 million hole each year that could be devoted to capital projects but instead is funneled to pay for road upkeep.

However, other than speaking to the possibility of public-private partnerships, Connaughton did not provide any details on how to stop this trend. He also reiterated Gov. Bob McDonnell’s opposition to raising the gasoline tax in a one-on-one interview with the News & Messenger.

It would seem that Connaughton’s freelancing days on the gas tax are over — not only because of the Governor’s stance against general tax increases, but more importantly, because of McDonnell’s possible vice-presidential ambitions (what would John Nance Garner have to say about that?).

This still leaves open the question of how the state intends to raise the monies it thinks it needs for new construction. Rest area advertising is mentioned as a possibility. It’s a fine idea, but hardly likely to pump $500 million a year into the state’s road building account.

Connaughton talks of public-private partnerships. Those are fine things, too, and Virginia should pursue those whenever possible. But even these don’t begin to close the construction gap.

But a “menu of potential options” needs to go much further. Some appetizers Connaughton might like to add include:

* Ensuring that the General Assembly can no longer raid the transportation trust fund to pay for other government programs. Constitutional amendments to put the fund off limits have been introduced, but have failed, because Democrats and Republicans can’t agree on the particulars of how it would all work.

* Overhauling VDOT. The current system is a Byrd machine relic that insists on the state having to maintain local roads. This isn’t just inefficient, it’s insane. Harry Byrd is dead. It’s time to put his road agency in the urn along with him and replace it with one that puts the responsibility for local roads in local hands.

* Stop using gas tax money to pay for mass transit. This is a wealth transfer, plain and simple. Worse, it breaks the implicit contract between the drivers and the government that their gas taxes will be used to maintain roads. It’s time for transit to pay its own way and stop leeching off the guy stuck in traffic.

* Begin experimenting with the next tax regime – whether it’s a miles-driven tax, congestion fees, tolls or something else – that will replace the per-gallon tax. Higher fuel economy and inflation have seriously eroded the gas tax’s purchasing power.

It would be very helpful, too, if Connaughton would use his bully pulpit to advocate against federal meddling in state road construction (points on which Heritage Foundation transportation expert Ron Utt elaborated in our radio interview with him in June).

If Connaughton is really interested in a full menu of alternatives that can generate the cash and policy freedom he wants, I’ve got Ron’s number…

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