TRANSPORTATION FUNDING LEGISLATION ADVANCES

In a move designed to prevent a floor fight over technical issues, the Senate "recommitted" SB 1379 back to the Senate Finance Committee, insuring its failure. SB 1379 (See VTCA General Assembly Update 2-2-07) was the Senate Finance Committee's alternative proposal to the "compromise legislation" (HB 3202 and SB 1417) offered by the Republican Leadership in the House, and would have removed the sales tax exemption for gasoline, raising more than $500 million a year for transportation.

HB 3202 (See VTCA General Assembly Update 1-22-07) did pass the House by a vote of 61-37 with some minor amendments. (See Vote Breakdown).

HB 3202 includes a $10 increase in passenger vehicle registration fees, an increase in the registration fee for trucks, raising the tax on diesel fuel to that of gasoline, the use of up to $2 billion in debt to fund construction projects, and an increase in fines for serious traffic violations and fees for drivers with bad records. It also commits the tax on insurance premiums to pay down existing VDOT debt, and it dedicates half of any future surplus to transportation spending. In addition, HB 3202 allows Hampton Roads and Northern Virginia to increase fees and taxes to provide more than $400 million annually for those regions.

The House and Senate votes keep transportation funding "in play" for this legislative session. HB 3202 now advances to the Senate, where its counterpart failed, and is likely to receive a series of amendments.

The Governor commented late last night that:

"The House passage of this bill is a further indication that there are significant areas of consensus as we continue to consider solutions to our serious transportation funding challenges. The transportation challenges are statewide. They are especially acute in the Northern Virginia and Hampton Roads regions. A solution will require substantial additional revenues. And the discussion also must include reforms that promote accountability and strengthen the link between transportation and land use.

I continue to have concerns about some elements of this proposal, and we will continue to work closely with the leaders in the House and the Senate to address those concerns as this proposal moves through the legislative process. I am encouraged that significant changes already have improved this legislation since it was first announced by the legislative leadership.

This vote was an important step, and much hard work remains. There is ample time to craft a plan that moves Virginia forward before this session is scheduled to adjourn."