Full text of Lt. Gov. Bill Bolling’s statement on Gov. Kaine’s proposal:
“Since he took office in 2006, Governor Kaine has relentlessly tried to raise taxes on Virginia’s families to generate additional funding for transportation, even though such tax increases are unnecessary and are not supported by the vast majority of the people of Virginia. The Governor’s most recent transportation proposal is just the latest chapter in this never ending saga and I seriously doubt that it will be well received by Republicans in the General Assembly or the people of Virginia.
“While there is never a good time to raise taxes, I am also concerned by the fact that the Governor and Democrats in the General Assembly want to raise taxes by over one billion dollars at a time when economic growth is slowing, fuel and food costs are skyrocketing, and working Virginians are having a harder time making ends meet. Increasing taxes now will unnecessarily hurt the economy and kill needed jobs. In addition, Governor Kaine’s tax increase plan is regressive and will hurt those least able to pay the most, including senior citizens on a fixed income and young families.”
“Developing a transportation system for the 21st century is one of the major challenges currently facing our state. While transportation challenges exist in every part of Virginia, these challenges are critical in two regions of our state – Northern Virginia and Hampton Roads. Solving these acute regional challenges should be the focus of the General Assembly’s efforts in the upcoming Special Session.
“In 2007 the General Assembly approved legislation that provided $600M in additional funding for transportation on a statewide basis, and an additional $600M in additional funding for transportation in Northern Virginia and Hampton Roads. While the Supreme Court has struck down the funding mechanism for the $600M in regional funding in Northern Virginia and Hampton Roads, the vast majority of the statewide package remains in tact and continues to generate significant additional funding to meet transportation needs across Virginia.
“If we are serious about finding a solution to Virginia’s transportation needs, rather than simply in engaging in another round of political grandstanding, we must keep our focus firmly fixed on solving the main challenge before us – developing a realistic and constitutional framework for providing additional transportation funding in Northern Virginia and Hampton Roads. To try and expand these discussions to a so called statewide solution is unwise and will jeopardize our ability to find workable regional solutions for Northern Virginia and Hampton Roads.
“I look forward to working with the members of the General Assembly to find workable regional transportation solutions for Northern Virginia and Hampton Roads. However, I will not support any effort to increase taxes on a statewide basis and I am confident this is a sentiment shared by a majority of Virginia taxpayers.”
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The governor’s plan:
~ Calls for June 23rd special session to address transportation ~
RICHMOND – Governor Timothy M. Kaine today released details of his transportation plan and called for a special session of the General Assembly to address transportation on June 23. The Governor’s plan fills our growing road and bridge maintenance deficit to promote safety, provides relief for regional transportation needs, and invests in innovative approaches to Virginia’s transportation challenges. The plan raises over $1 billion annually by fiscal year 2012 and contains no gas tax increase.
“During the past several weeks I have talked to legislators, local elected officials, business leaders and other citizens about addressing our transportation problems,” Governor Kaine said. “Today, based on those discussions, I am offering a plan that is simple, statewide and sustainable to address the growing shortfall in our maintenance needs and provides dedicated funds to address our statewide and regional transportation needs.”
Consistent with past proposals, all funds that the Governor proposes for transportation will include a lockbox mechanism, specifying that the fund shall expire if it is used for any purpose other than transportation.
Safety First
Virginia currently faces a shortfall in highway maintenance funding, which drains money each year from dollars intended for road construction. Most of the highway maintenance funding goes to addressing safety issues – repair and operation of bridges, tunnels, traffic signals, and streetlights, as well as installation of guard rails and rumble strips, and plowing and paving the third largest highway system in the U.S.
Governor Kaine’s proposal addresses the safety issues Virginians currently face by stabilizing the funds needed for highway maintenance. His proposal also frees up dollars for new investments in road construction that can help address the safety hazards in urban and rural areas.
To address the highway maintenance deficit, the Governor’s plan
· Increases the existing statewide motor vehicles sales tax from 3% to 4% and dedicates all motor vehicle sales tax funds to maintenance;
· Increases the statewide annual vehicle registration fee by $10 and dedicates those funds to maintenance.
· Both of these increases were previously approved for regional purposes in HB 3202 by the 2007 General Assembly.
Regional Relief
To address traffic in the two most congested regions of the state – Northern Virginia and Hampton Roads – the Governor’s plan invests in critical, targeted projects through new funds that are raised and invested in the regions. In addition, by correcting the maintenance deficit, the Governor’s plan will increase local road construction funding statewide, restoring support for construction projects across the entire Commonwealth.
To address traffic congestion in Northern Virginia and Hampton Roads, the Governor’s plan
· Increases the retail sales tax in both regions by 1% (does not apply to food or drugs);
· Dedicates regional sales taxes to the Northern Virginia Transportation Authority, consistent with current law; and
· Dedicates regional sales taxes to seven regional projects in Hampton Roads, including the Hampton Roads Bridge Tunnel, and abolishes the Hampton Roads Transportation Authority.
Governor Kaine is also proposing the abolition of the current local option income tax in both regions.
Transportation Change Fund
Virginia’s transportation challenges range from severe congestion in areas like Northern Virginia and Hampton Roads to much-needed infrastructure to support economic development in rural parts of the state. While new construction can help relieve congestion, traffic challenges cannot be solved through road construction alone. And Virginia’s transportation challenges are not just limited to traffic. Governor Kaine’s plan recognizes the need for a change in our approach to transportation funding by creating a Transportation Change Fund.
The Governor’s Transportation Change Fund will increase investment in transit, rail, and innovative solutions to reduce traffic congestion like teleworking and ridesharing. Three-quarters of the Transportation Change fund will be dedicated to transit and rail projects, increasing transit and rail investment by over 30%. The fund also makes dollars available for transportation projects to support economic development through aviation, port, and innovative highway investments.
To invest in the Transportation Change Fund, the Governor’s plan
· Increases the statewide grantor’s tax by 25 cents. The General Assembly previously approved a 40 cent grantors tax as part of the regional package in HB 3202.
“I look forward to working with both parties in the Senate and House of Delegates to address the serious transportation challenges and opportunities we face,” Governor Kaine said.
More information on the Governor’s transportation plan can be found at www.transportation.virginia.gov.
