Lief's Law

Joshua N. Lief



Means of Last Resort

 

Virginia's roads need help. But before raising taxes, Virginians should wait for Gov. Warner to straighten out VDOT and see what two important study commissions have to say.  


 

I do not claim to be an expert on the Virginia Department of Transportation (VDOT), nor even the Commonwealth’s transportation system in general.  During my four years in Virginia's Commerce Secretariat, though, I did deal with a series of issues involving transportation. Acting as a quasi-official ombudsman on behalf of business, I dealt with issues such as road construction for new industrial facilities, interstate signage for tourist destinations and the like.  I also worked closely with VDOT as chairman of former Gov. Jim Gilmore’s Visitor Center Task Force, which came up with a plan to overhaul the Commonwealth’s welcome centers and rest areas. That task force accomplished much, but there is still a lot of work required to bring the Commonwealth’s visitor facilities up to the level commensurate with our position as a preeminent travel destination. 

 

With this background, I have watched with interest the ongoing debate surrounding the November referenda to increase the sales tax for transportation projects in Northern Virginia and Hampton Roads. Hampton Roads voters are being asked to approve a one-cent sales tax hike to fund six major transportation projects, including the much needed third crossing. Northern Virginia voters are being asked to support a half-cent sales tax increase to pay for road and transit projects in the region.

 

VDOT is a much maligned agency – some of the scorn being deserved, most of it undeserved. The vast majority of the Commonwealth’s transportation system is excellent. Having emigrated to Virginia from New York City 10 years ago, I have first-hand knowledge of how bad roads actually can be and what a real traffic jam is like. VDOT employees and contractors work round the clock to build and maintain our highways. There are miles upon miles of well-paved and engineered roads, all the way from Virginia Beach to the coalfields.  When faced with an emergency situation -- caused by hurricanes, snowstorms or even the attack on the Pentagon VDOT has done an outstanding job of keeping the roads clear and making emergency repairs.

 

However, despite what is on balance a very good record, there are serious transportation needs in the Commonwealth that need to be addressed. Anyone who has ever tried to get across the Hampton Roads Bridge Tunnel on a summer weekend or make a 9 a.m. meeting inside the Beltway also understands what real traffic jams are like. Frustration over the transportation systems in both Northern Virginia and Hampton Roads has boiled over in both regions. I empathize with local officials and business leaders supporting the tax increase: Revenues from a sales-tax hike would jump-start a number of important projects which, according to the current budget and VDOT planning process, would otherwise take years to fund.

 

But frustration over the transportation system is not limited to Hampton Roads and Northern Virginia. There are important transportation needs in other regions of the Commonwealth. Examples that come quickly to mind include far Southwest Virginia which needs better roads to attract more industrial projects, and Interstate 81 which is jammed with tractor-trailers. Moreover, Southside, which also needs economic help, has a series of projects that need completion, including bypasses on U.S. 58 and U.S. 29. (As an aside, I have always been chagrined when driving in the area of the North Carolina border in Southside where the roads dramatically change for the better when you cross the border into N.C.). It could be argued that increased funding for Hampton Roads and Northern Virginia further widens the gap between those prosperous regions, which can afford a tax increase, and those in the Commonwealth that are in deep economic disstress.  

 

Given the backlog of projects across the state, combined with high-profile overruns on some mega-projects like the Springfield “mixing bowl,” it’s understandable that VDOT-bashing has become such a popular sport. Just last month, a report released by the state auditor, prepared at the request of Gov. Mark R. Warner listed 62 recommendations to improve VDOT. 

Meanwhile, the governor has dumped most of the Commonwealth Transportation Board and installed a new VDOT Commissioner who has begun to reorganize the department. The challenge for the tax boosters is to make voters understand why, in the midst of all this activity, they should send more money to VDOT and our road-building program. Asking voters to spend more money on roads now is a bit like asking Enron stockholders to double their stock holdings to get the company through the current downturn. Before deciding that new taxes are warranted, tax opponents will say, it makes sense to take the corrective actions based on the audit, let the re-organization take hold and allow the new CTB to set a clear policy. 

 

There are high-altitude issue as well. Exactly what level of spending for state services in general, and transportation in particular, is adequate? The state budget has grown significantly over the past decade as the Commonwealth has experienced rapid growth. Is it unreasonable to suggest that state spending be better understood and controlled before taxes are raised, whether in the upcoming sales tax referenda or through Gov. Warner’s recent suggestion that we should increase tobacco taxes. This is particularly true when top-to-bottom reviews of state government activity and the state tax structure are underway. Former Gov. L. Douglas Wilder’s Commission on Efficiency and Effectiveness is undertaking an examination of “state government to see how effectively it serves Virginia citizens and how efficiently it provides them with those needed services.” Simultaneously, a Joint Subcommittee of the General Assembly is in the middle of a complete examination of the tax code, including the “necessity and sufficiency of current taxes, fees, deductions and credits as well as the rates of taxation.”

 

A piecemeal approach has caused many of the problems with transportation planning in particular, and the overall budget in general. These two reviews promise a comprehensive approach to very difficult issues. Until this work is complete and the leaders of the Commonwealth can assure us that government is operating with maximum equity and efficiency, increased taxes should be the solution of last resort.

-- August 12, 2002


Joshua N. Lief, a Secretary of Commerce and Trade during the Gilmore administration, is an attorney at Sands Anderson Marks & Miller in Richmond. He can be reached by e-mail at jlief@sandsanderson.com