The Virginia Supreme Court has ruled unconstitutional the creation last year of a Northern Virginia transportation authority with taxing powers, and by implication its counterpart in Hampton Roads, on the grounds that “taxes must be imposed only by a majority of the elected representatives of a legislative body.”
This ruling eviscerates the laboriously constructed HB 3202 transportation-financing plan that passed into law last year. Not only was the financing scheme of that bill atrocious public policy, shredding the nexus between those who used roads and those who paid for them, it was bad law. Lawmakers will have no choice but to revisit the issue of transportation financing for, between the imminent repeal of Abuser Fees and the unconstitutionality of regional authorities, precious few of the revenue-raising mechanisms enacted last year will remain in place.
The General Assembly set up the Northern Virginia Transportation Authority and Hampton Roads Transportation Authority as regional entities represented by officials from the localities comprising each region. Although those officials had been elected to their local jurisdictions, they were not elected to the regional authorities. In a unanimous ruling, the justices declared:
The constraints that the citizens of Virginia have placed upon the General Assembly regarding the imposition of taxes would be rendered meaningless if the General Assembly were permitted to avoid compliance with these constraints by
delegating to NVTA the decisional authority whether to impose taxes.
You can read the Supreme Court ruling here. I’ll update this post with reactions as they come in.
L. Steven Emmert, author of the Virginia Appellate News & Analysis blog, weighs in with a legal perspective here.
Gov. Timothy M. Kaine: “I am disappointed by the Supreme Court’s finding. … Over the next few days, my legal staff and I will work closely with the Attorney General’s Office and members of the General Assembly to determine what alternatives are available to provide adequate transportation funding.” (See press release.)
Attorney General Bob McDonnell: “The Virginia Supreme Court has spoken, we respect their decision, and we will advise our clients appropriately based on today’s ruling. It remains critical for Virginia’s future prosperity that we improve our transportation system.”
House Speaker William J. Howell: “We will be reviewing this decision carefully and remain committed to sorting out the long-term prospects for the regional plans in a timely manner. Fortunately, the statewide components of the Act – which by themselves incorporate the largest single investment in transportation in a generation – are working right now to improve our roads, railways, and public transit.”
Lt. Gov. Bill Bolling: I agree with the Supreme Court’s finding. “The authority to tax is one of the most significant responsibilities of government and that responsibility cannot and should not be delegated to a body that is not directly responsible to the voters. … The General Assembly will have to revisit the issue of providing adequate transportation funding to meet the needs of these important regions.”
