Kaine pushes transportation plan in Leesburg
By Jason Jacks
In the lead up to the General Assembly's June 23 special session on transportation, Gov. Tim Kaine (D) was in Leesburg June 11 to pitch his plan to raise taxes and fees to pay for transportation projects throughout Virginia.More than 100 residents and local elected leaders filled an auditorium at Harper Park Middle School to hear Kaine describe a plan to increase the state's retail and car sales taxes and as well as the grantor's tax home sellers pay to fund road and transit improvements.
"There is no free lunch in this world," he said. "This is what this is all about."
As Kaine described, his plan, which will raise about $1 billion annually, includes a statewide 1 percent hike in Virginia's vehicle sales tax and a $10 increase in its vehicle registration fee. These changes, he said, will generate about $250 million a year to fund maintenance of existing roads and bridges.
Kaine also is proposing to raise the retail sales tax by 1 percent in Northern Virginia and Hampton Roads to fund road projects in both regions. In Northern Virginia, he said the change would create more than $300 million a year starting in 2009.
Finally, Kaine said he also wants to raise the grantor's tax home sellers pay at closing by 25 cents for every $100 of a home's sale price. The majority of the $150 million a year this would generate, he said, would go toward public transportation, with the rest to be set aside for statewide economic development.
Kaine defended his plan explaining that Virginia has one of the wealthiest populations in the nation, yet one of its least taxed.
After speaking, Kaine faced a smattering of mostly receptive questions and comments.
Paul Bice, with the Loudoun Chamber of Commerce, said gridlock is preventing businesses from "getting employees and products" and that the chamber supports increasing taxes to fund road projects.
"If we don't do anything, we are going to start shrinking on the vine," he said.
Shelly Huss, with the Loudoun County Commuter Bus Advisory Board, asked the governor to give Loudoun more money to buy additional buses. In April, the system saw its busiest month ever, with more than 72,000 riders, as first reported by the Times-Mirror.
Meanwhile, Sterling's Richard Pettiford, sounding frustrated, told Kaine that he wants a regional bus system that can cross all local jurisdictions. Metro and Fairfax Connector buses do not serve Loudoun.
"Just paint them all the same color and let them go everywhere," he said after the meeting.
As for the governor's plan to raise more revenues, some speakers accused Kaine of breaking a campaign pledge not to increase taxes. But Kaine said he also promised to address the state's ailing transportation system and that his 2005 pledge did not apply to these taxes and fees.
While not making predictions on his plan's chances in Richmond later this month, he did challenge lawmakers opposed to it to find another way to fix the region's gridlock.
"I told legislators that if you have a better plan, I want to hear it," he said. "But since I rolled out my plan on May 12, I haven't."
Contact the reporter at jjacks@timespapers.com