The Club for Growth

Phillip Rodokanakis


 

 

Thinking Outside the Box

House Republicans have released their transportation package. Unlike competing proposals, this plan would not raise taxes at a time of unprecedented budget surpluses. 


 

“Raising taxes and 20th Century approaches are the Wrong Way” – House of Republicans introduction of a comprehensive 21st century transportation plan.

 

Finally, the Republican Caucus in the House of Delegates has released its much anticipated transportation plan. The program was long overdue, given that both the Governor’s and Senate plans were released several weeks ago.

 

The House plan is three pronged: It proposes to manage growth in a responsible manner; it promises to transform how transportation services are organized, planned, and delivered; and it invests new, dedicated, and sustained revenue for targeted solutions with the goal of reducing congestion and increasing mobility—without increasing taxes.

 

The proposals from Gov. Timothy M Kaine (D) and the Senate Republicans are the typical knee-jerk reaction of tax-and-spend politicians. Whenever these folks perceive a public demand for additional services, they run around dreaming up new taxes.

 

In contrast, the House Republican plan is a breath of fresh air. It does not rely on new taxes but promises to earmark some $2 billion over the next four years to fund our transportation priorities.

 

Virginia does not face a shortfall of revenues—on the contrary, we are sitting on large budget surpluses. Even before the 2004 tax increase kicked in, the revenues to the treasury greatly exceeded the spending outlays.

 

The Virginia Club for Growth and other conservative organizations have been saying for years now that Virginia faces a spending crisis. We are still using an antiquated budget that was designed in the early 1970s, long before the advent of modern computer networks.

 

Furthermore, Virginia does very little in terms of overseeing the spending of tax dollars. We have yet to institute any performance-based budgeting initiatives or implement independent oversight controls over the way executive agencies spend and manage their appropriated dollars.

 

Budget reforms are sorely needed before our state begins to operate like a 21st century enterprise. But our current transportation problems cannot wait for the politicians to first reform the budget. Budget reforms could take years—it is highly unlikely that they would take place while the state Senate is run by a herd of RINOs (Republicans in Name Only).

 

That is precisely why the House plan is noteworthy. It not only diverts existing funds to free up our transportation bottlenecks, it tries to reform the way we manage our traffic problems.

 

Bills proposed by House Republicans attempt to instill greater accountability and oversight over transportation agencies, expedite the deployment of new technologies to squeeze more capacity out of existing roadways, provide access to cost-effective and time-saving procurement methods, increase public-private partnerships, and push other similar initiatives intended to increase efficiencies and reduce costs.

 

Like any other set of proposals, the House plan contains some ideas that should be widely debated. For example, piling civil penalties on top of traffic fines on habitually dangerous drivers is one proposal that is highly questionable. It is doubtful that a correlation exists between bad driving and traffic fines. No one is saying that the traffic fines are set too low or that by increasing the fines, somehow this makes drivers drive more responsibly. On the contrary, the House plan relies on additional civil penalties to pay for new roads—not to promote better driving.

 

Unfortunately, the House plan relies excessively on the money to be raised through bad drivers, as more than 25 percent of all the new funding is estimated to come from this source. The demerits of this proposal have been discussed before (see: “Tax Fever,” Jan. 30, 2006, and “Why Not a Ticket for Tax Abuse?” Jan. 4, 2005).

 

Furthermore, there are two other fallacies associated with this idea: Firstly, additional fines and penalties will do little to promote safer driving; in other words, if 25 percent of the gridlock is due to bad drivers causing accidents as the House Republicans estimate, this initiative will have no affect on freeing up any part of the gridlock. Secondly, in the unlikely event that the additional civil penalties inspire drivers to begin driving more responsibly, the additional revenues will dry up.

 

Nonetheless, other House Republican proposals merit close attention. Like all proposals they should be debated and the best ideas should be considered for implementation. In any event, the House Republicans should be commended for thinking outside the box.

 

-- February 13, 2006

 

 

 

 

 

 

 

Phillip Rodokanakis, a Certified Fraud Examiner, lives in Oak Hill. He is the managing partner of U.S. Data Forensics, LLC, a company specializing in Computer Forensics, Fraud Investigations, and Litigation Support. He is also the President of the Virginia Club for Growth.

 

He can be reached by e-mail at phil_r@cox.net.

 

Read his profile here.

 


 

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