Senate Steps Up
Posted by Chap at 6/26/2008 7:28 AM and is filed under uncategorized 
Yesterday, the Senate passed two key pieces of legislation.
The first bill was SJR 6004, which starts the process for a constitutional amendment for a "double lockbox," i.e. forbidding the Assembly from "commingling" transportation trust fund dollars with our state general fund. This concept has been promised many times, most recently by Tim Kaine in 2005, but never formally adopted into our state constitution. I copatroned this bill which passed on a 31-5 vote.
The more controversial bill was SB 6009, which is the consolidated Senate transportation plan. After hours of debate, it passed 21-16. I voted "yes." Here are some of the highlights:
1. It has both statewide and regional components.
2. At the statewide level, it raises the sales tax 0.25%, the titling tax on cars by 0.5% and the tax on gasoline a "penny a gallon" for six years. It also removes the half-cent sales tax on groceries (currently dedicated to transportation) in order to help working families. The net total raised statewide ranges from $450M to $720M over the next six years.
3. A quarter of the new money comes "off the top" for the Commonwealth Mass Transit Fund. This ranges from $109M in 2010 to $174.5M in 2015. The majority of this new money will be coming to Northern Virginia - the single largest state assistance in my memory to our region.
4. The remainder of the money (from $266M to $446M) is distributed to VDOT to fix the deficit in the Highway Maintenance Fund, which has been growing for the past several years. By fixing that, the state can restore the Six Year Plan of projects which has been radically downsized in the last few years.
5. At the regional level, the plan largely mimics the numbers produced by last year's HB 3202, without using unconstitutional gimmicks.
6. In Northern Virginia, there is a half-cent sales tax increase, as well as the previously-enacted grantor's tax and transient occupancy increases. The sum total is $335M-380M generated annually thru 2015.
7. Of that new money, $75M comes "off the top" for expanded METRO and VRE service. Again, transit is front-loaded. The rest is dedicated primarily to secondary road construction which has been lagging for years.
8. Added together, the state and regional allocation for transit in Northern Va. alone will exceed $150M right away and should eventually equal $200M annually. Leveraged with Federal funds, it could mean as much as $400M annually for our region to expand METRO and VRE service and develop new services, e.g. "bus rapid transit" in the outer suburbs.
A few comments ...
First, I believe in the statewide, not regional, approach to transportation solutions. I also believe that Northern Va. legislators should flex their muscles to get a "fair share" for the economic engine. In this case, I'll settle for half a loaf (or maybe 2/3).
Second, I believe that new funds should be dedicated (as much as possible) to transit solutions. SB 6009 goes farther in that respect than any plan I've ever seen proposed in Richmond. That is it's best feature.
Third, I believe that transportation users, especially out-of-state drivers, should bear the costs. While not completely dedicated to that concept, SB 6009 at least includes it. Other plans, including the Governor's, did not.
SB 6009 still has some kinks but no one can deny that it is both honest and comprehensive.
The House of Delegates now have the bill. The Senate and Governor have both stepped up with our plans. As they say on the basketball court, who's got next?
SJR 6004 and SB 6009 taken together constitute a good start, but are still woefully inadequate for the needs of Northern VA. These bills will provide election year coverage for downstate politicians, but little in the way of real solutions. Perhaps more devious or radical measures are called for? While the focus is on SB 6009, what about updating the VA revenue sharing formulas to limit the number of years that the percentage of VA State revenue returned to each county may fall below, say, 80%? Transit need not be specified. If No. VA can retain a majority of the revenue that the state diverts from the citizenry rather than the historical small percentage, No. VA could address our own regional priorities and solutions. For instance, No. VA could partner with employers including the Federal Government to promote strategies like Secure Telecommuting, which would have little meaning in other parts of VA, but could have a substantial impact on transit.
A possible tactic to focus VA and national attention on the seriousness of the No. VA issues would be for the No. VA Legislative contingent to present a serious proposal to secede from VA and form our own State to retain more of the revenues we generate. And to raise the stakes, the Legislative contingent could negotiate with their counterparts from Washington, D.C. and southern MD in the context of forming the 51st state. While it may not be prudent to actually carry through with secession (and providing representation for D.C.), the threat of Richmond (and Annapolis) losing their cash cow(s) could provide a tool to encourage more equitable distribution of state revenues.
Politics as usual has worked to the detriment of No. VA for decades - it is time for new thinking and new tactics!
Giving downstate what they want (getting rid of NOVA) would be an abject lesson in "Watch what you ask for, you might get it" for certain! We'll need to keep all this year's new registrants interested until Nov 09 election to win next year. Albo's already turned himself into a pretzel to accommodate his brethren, wonder what he'll do next year especially if a good opponent is recruited for his seat - anyone working on that?
Thanks again for the updates
In exchange for a .75% sales tax increase plus other taxes we get
around 200 million for transit and 200 million for roads
I don't know about your district specifically Chap but in this area most people are using roads and not transit. Seems like the split should at least be 75% roads and 25% mass transit. Also, commerce and other small businesses are relient on the road network.
I believe transit has its place. However 50% of funding is too much. Transit only works if your starting and ending point can be reached and for the majority of people that is not a reality. Regardless of how much more money you put in to expand service.
For those of you that say you should move to where there is transit. A couple things. People change jobs frequently. Usually both parents work in different locations. Housing costs are more expensive around transit.
I applaud the implementation of the "Lockbox" provision. I was against the Governor's proposal to tax the region rather than fairly tax all users of our roads (including out of towners). Also, his proposal to tax the sale of homes as a means of raising funds for transportation is a loser. We don't need the State taxing our homes (or their sale or recordation). The County needs home taxes to fund local school needs, etc.
Keep up the good work.
Chap:
First of all, many thanks for writing this blog. I wish every elected official in Virginia took the time and effort you take to communicate with the voters.
I spend a lot of time overseas. I have spent a lot of time in countries where the cost of gasoline is very high and has been very high for years. Mass transit is a big part of people's answer to high gas prices. As the US continues to experience structural increases in gas prices mass transit will prove more and more crucial to our economy and way of life. I think it's important for our elected officials to think about a future where gas costs $7/gallon and the demand for public / mass transit skyrockets. Right now, mass transit plays second fiddle to personal automobiles. If gas were still $1.50/gallon I'd say "forget mass transit unless it can pay for itself with historical usage patterns". But at $4.50/gallon and trending up - we can't think in historical terms.
D. Woodside makes a series of good points. People in Northern Virginia consistently believe they are getting "the short end of the stick" with resepct to funding from Richmond. This sense is reinforced when nobody seems to be able to produce a regional income statement. How much money is collected in total state taxes from the residents of Northern Virginia vs. how much does the state put into Northern Virginia? I expect that we pay for more than we receive. I'd just like to know how much more. I think this information is a pre-requisite to deciding whether any tax plan is good or bad.
As for D. Woodside's point about NoVA statehood - it may not be as far fetched as it seems. I'd imagine a President Obama would be sympathetic to DC's long time (and valid) complaint of "taxation without representation". Adding suburban Virginia and suburban Maryland to the state would make the resulting state a lot stronger. And all those folks downstate who exclaim that NoVA isn't "the real Virginia" would finally be proven correct.
Good luck with the session.
Don, God forbid we secede and join DC...Id have to move. Then again, I don't think Chap would let them force their laws on us and not allow us to protect ourselves.
Regardless, only Texas has the power to secede from the union legally.
Chap,
Does it seem to you like it seems to me that this special session the beginning of the 2009 campaign? Sen. Vogel (R) 27th published a column in June 28th's Winchester Star that contained what read like the heart and soul of GOP talking points for that purpose as follows: "Adding insult to injury, members of the governor's party rejected every single measure that would raise revenue without raising taxes. That included a lock on transportation dollars, diverting port proceeds for roads, dedicating off-shore drilling revenue, and allocating part of the current sales tax to fund transportation, programs that would undeniably generate hundreds of millions in new transportation dollars." I wrote a detailed rebuttal for later submission I'll send you if you like. It took me over 500 words just to rebut the numerous contradictions in fact and logic including a few in the statement highlighted above.