There has been a lot of political argument surrounding the Transportation Bill proposed by Governor McDonnell currently stalled in the State Legislature. The plan proposes;
- Removal of the gas tax
- Raising of the overall state sales tax by 16% to 5.5%
- Some additional fees, most notably a $100 fee on Alternative Fuel and Hybrid vehicles
- Ultimately generates $3.1 billion in the next 5 years specifically for Transportation.
Many in the Northern Virginia region, specifically those connected to Transit-Oriented advocacy, have called the plan regressive and an unfair tax on residents who use roads less or not at all. Conversely, many believe that the amount of funds we are getting back on the gas tax, a flat 17.5 cents per gallon which has not be altered since 1988, is hemorrhaging every year and a new source must be found that will be more stable.
One of the biggest proponents of the Governor’s plan has been Fairfax County’s Chamber of Commerce. We spoke with Christian Deschauer, Vice President, Government Relations for the chamber, to better understand the organizations stance on the bill.
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Me: You have noted the importance of transportation to our region, something we agree with. In your opinion what are the biggest improvements to our transportation funding, specific to Fairfax, that comes with the Governor’s transportation bill.
Mr. Deschauer: It is important to note that this plan brings in $3.1 billion in 5 years towards transportation. One of the most important parts of the plan is the ending of “cross-over”. Currently a significant amount of money is spent on road maintenance that comes from money set aside for construction. For a region like Northern Virginia which has large construction needs this is a problem.
Cross-over hurts us [Fairfax] the most. Conceivably this plan will end cross-over by providing 500million per year [Gap in maintenance funds] by 2019. Cross-over has been a problem for well over a decade and something needs to be done to correct it, and we applaud the Governor for making this a priority this session.
Specifically for our transportation needs in Fairfax, this plan provides capital revenue of $300 million towards Phase 2 of the Dulles Rail project, on top of the already pledged $150 million. This is very important to Fairfax because it can help reduce tolls on the Dulles Toll Road, something that effects thousands of families in Fairfax.
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Me: Funding for Fairfax County’s transportation needs has fallen significantly since the Kaine administration, though it has been a long term trend dating back to Governor Gilmore, and the County now faces a transportation deficit it is looking to fill with local taxes and revenue sources such as the Tysons District Tax. There are a few projects being constructed in other parts of the Commonwealth that some have questioned the need for. Do you believe that the administration will spend the new money in our area?
Mr. Deschauer: We believe that the current administration understands that the Northern Virginia community needs more capital funds. We want every dollar that can be spent in NOVA to come to NOVA, but we understand that it is also important for the Commonwealth as a whole to have good transportation. We know that there have been critics of some of the projects in other parts of this state. I am not knowledgeable enough on the specifics of those projects to speak on their merit. However, the number 1 issue is still that we don’t have enough dedicated funds for transportation, and we think the Governor understands that, which is why he made this the central issue this year.
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Me: Fairfax county has the highest consumer base in the state, clearly a sales tax increase would be felt by more households here than anywhere else in the state. Do you believe that the source of the funds, being from sales tax, is important? Or would the Chamber be as positive towards a comparable revenue stream for transportation coming from the gas tax being increased?
Mr. Deschauer: We [Chamber] are open to whatever can get through both houses and get to the Governor’s desk.
Me: Do you think a raise in the gas tax wouldn’t be able to be passed?
Mr. Deschauer: A raise in the gas tax hasn’t been successful in the past two years.
Me: What are the chamber’s thoughts on devolution, removal of state obligation of maintenance for Fairfax County in return for gas tax. It has been a political football that has switched partisan sides a few times.
Mr. Deschauer: Devolution of road maintenance is an extremely complex issue that we [Chamber] haven’t supported in the past. We believe that there is still a statewide solution available for maintenance needs. The best solution would be one that fixes statewide maintenance, raises some new construction funds, and then gives localities the ability to generate their own revenue locally to close the construction gap. That is why we are strong supporters of HB3202. We believe the final product from the transportation bill will include local revenue possibilities. It needs to be a mix of new statewide construction money and local construction money.
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Me: An FCDOT survey last year indicated that most Fairfax residents wanted more transit options around the county. The current proposed sales tax hike and removal of gas tax is noted for transportation funding, however outside of the one time funds for the Silver Line, there is no indication that the funds will be made available to any other agencies other than VDOT. DPRT, not VDOT, is in charge of state wide transit funding, though their budget has been cut over the past 4 years while VDOTs has continued to grow. Won’t funds sent to Richmond continue to go towards projects that are not the highest priority for Fairfax residents?
Mr. Deschauer: First, I do believe that there is language included in the bill that sets aside transit money, though I am not sure where that stands after some of the amendments in the legislature. We [Chamber] support Transit-Oriented development, but we also know that we need an “all of the above” solution because Fairfax does have some capacity needs. We believe this bill addresses both of those.
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Me: Thank you so much for sitting down and speaking with me today. Do you have any closing thoughts you’d like to convey?
Mr. Deschauer: I want to stress the Chamber’s appreciation to the Governor and Secretary for putting this issue on the table and making it the issue of this legislative session. The plan is a good start and we know that there will be changes to it. What is important right now is compromise. This is an important issue and we need compromise. And lastly to mention that we do support the ability for local jurisdictions to generate a local transportation fund, because this is crucial to our area. We need, beyond the maintenance funds, the ability to construct infrastructure and a local revenue source can do that.
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The Fairfax Chamber of Commerce has been the central business organization, and voice of business, in Fairfax County and Northern Virginia for more than 85 years. It includes more than 600 member companies which it helps facilitate industry focused councils, leadership groups, community partnerships, and other opportunities. For more information on the Chamber of Commerce, visit their website at www.FairfaxChamber.org