Koelemay's Kosmos

Doug Koelemay


 

 

The Special Session Is Now

The outline of a compromise on transportation funding is coming dimly into view: Some new funds now, a full-fledged plan later (maybe).


 

"We’ll have some transportation budget provisions by the March 11 adjournment," a veteran transportation lobbyist noted last week as Delegates and state Senators adopted separate versions of the two-year budget that starts July 1, 2006, "We just won’t have a real transportation plan. So what else is new?"

 

In the lobbyist’s blunt view, transportation politics will finesse the absence of a plan, disagreements over the level of funding and other issues. Virginia House and Senate leaders will use the next 10 days to strike a transportation deal and turn things over to Gov. Timothy M. Kaine to articulate a coherent strategy of some kind before the April 19 veto session.

 

Such a political deal still could acknowledge what Gov. Kaine and state business leaders have been saying for some time: More money is needed to meet transportation infrastructure needs across Virginia, particularly in fast-growing regions, such as Northern Virginia and Hampton Roads, where traffic congestion and limited transportation alternatives are choking economic growth. But there is no appetite to tackle what has been sized by some experts as a $2 billion-per-year need, including $600 million annually each for Northern Virginia and Hampton Roads.

 

Such a political compromise also could acknowledge that transportation needs new, sustainable sources of funds so that at some point in the future the Commonwealth could have a strategic transportation plan. Gov. Kaine continues to make clear in his transportation town hall meetings around the state that without new sources of funds, Virginia will be dedicating its entire road and highway budget to maintenance in five years. There may not be enough money left over then even to provide matching funds for federal highway construction dollars.

 

It would be Kafka-esque for the General Assembly to acknowledge that there are transportation solutions... but not for all of Virginia. And that there are substantial new transportation dollars... just not now. Everyone appears to agree that some one-time transportation needs could be met by dedicating General Funds this year to transportation. Similarly, a discrete funding source that will grow in the future could be dedicated anew to the transportation trust fund. And who wouldn’t support raising some of the fees related to vehicle registrations?

 

Some general funds, some fee increases, making the sales tax on vehicle sales a little more like the sales tax on everything else sound like parts of a deal that can be struck now. And if that doesn’t accomplish everything? "We can tackle this again in 2007," quips one Delegate. "After all, the Assembly is like the circus: We come back every January."

 

Still, it is risky for General Assembly members to shove more comprehensive solutions into 2007 given elections ahead for both Delegates and state Senators next year. Gov. Kaine is drawing confidence in his transportation public meetings from survey research that shows voters want a comprehensive transportation solution and are willing to pay higher taxes to get it. As outlined in the Richmond Times-Dispatch recently, a February survey shows 88 percent of Virginia voters say money should not be diverted to transportation from such popular services as education, 84 percent want a long-term remedy and 77 percent believe new transportation funding should be directed to all areas of the state.

 

A transportation half-measure right now driven by legislative politics would not only ignore these raised public expectations, it might actually encourage challengers in 2007 to incumbents who don’t deliver in 2006. The survey as reported in the RTD suggests two-thirds of all voters, including 40 percent of Republican voters, would be more likely to support a candidate in 2007 that stood for substantial, sustainable, statewide transportation solutions over one who did not.

 

But in the short term, statewide solutions that demand more total revenues compete openly with plans to use more general fund dollars and to encourage discrete regional solutions, such as dedicating a new local tax in a region to transportation solutions in that region.

 

"If we don’t have to vote for a general tax increase," one Delegate explains, "then we don’t have to demand more transportation dollars through existing formulas and that can let the most congested regions do some things on their own."

 

Allowing localities in Northern Virginia to decide whether raise the sales tax a quarter cent to fund Metrorail operations, for example, is the kind of local option that wouldn’t require every Delegate or state Senator to actually vote for a new tax. And the estimated $50 million annually raised in that region (along with other dedicated funds from Maryland and the District of Columbia) are to be matched by $150 million annually in new federal dollars.

 

Similarly, transportation projects built by the private sector with money paid back through tolls on those projects would keep mainly local funds working on mainly local projects. These and other questions don’t get any easier to answer after the Assembly’s March 11 date for scheduled adjournment, so a special session for transportation later might only have the purpose of building popular pressure. But even without a consensus on strategic plans and regardless of pressure ahead, legislators already know they need to approve lots more money for new highways, roads, bridges, transit, ports, airports and rail construction as well as maintenance.

 

The special session is now.

 

-- February 27, 2006 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact info

 

J. Douglas Koelemay

Managing Director

Qorvis Communications

8484 Westpark Drive

Suite 800

McLean, Virginia 22102

Phone: (703) 744-7800

Fax:    (703) 744-7994

Email:   dkoelemay@qorvis.com

 

Read his profile here.