Before last year’s General Assembly session, it was clear transportation would be the session’s hot-button issue.

This year that title may go to illegal immigration, but a close second could be fixing — or completely unraveling — the $1.1 billion transportation package lawmakers passed last year.

First: abusive driver fees. Gov. Tim Kaine, most Democrats and many Republicans support repealing the unpopular steep fees lawmakers passed last year for serious driving offenses.

This year, legislators have introduced a host of bills that repeal the fees, including some that would refund citizens who already paid the fees.

Then there’s Republican Del. David Albo of Fairfax, sponsor of the bill that created the fees, who wants to salvage them by making them applicable to out-of-state drivers as well.

How will lawmakers make up the $65 million those fees were supposed to bring in each year? Some Senate Democrats have already introduced raising the gas tax — a plan that can be presumed dead when it reaches the House of Delegates.

The new Democratic Senate majority said yesterday that one of its priorities will be increasing money for the transportation maintenance fund.

That fund is critical to the state’s transportation network — although far less sexy than any appeal for new transportation projects.

The fund currently has a $290 million shortfall. By law, transportation money must first go to maintaining current roads before money is used to build new ones. That means the maintenance shortfall robs the state’s construction project money.

The Democrats have not reached agreement on how to raise more transportation money, but the House of Delegates certainly has no appetite for new tax increases.

Then there’s the danger to the transportation authorities created in Northern Virginia and Hampton Roads. These were designed to raise money in the state’s most traffic-clogged regions.

Some lawmakers have introduced bills that would tweak what taxes and fees the authorities can use in the region. Kaine is saying he would support changes, as long as it didn’t reduce the potential amount of revenue that could be raised.

But the future of these fees may be in peril. The Virginia Supreme Court heard arguments Tuesday on the constitutionality of the authorities. Last year’s transportation package could quickly fall apart if the authorities were ripped of their taxing power, leaving the state’s economic engines in gridlock.

Transportation remains the No. 1 issue for Virginia businesses. Last year, the state provided a big boost to the aging network. Let’s hope 2008 isn’t the year it all falls apart.

On your mark, get set, go! The 2008 General Assembly opened today with a new majority in the Senate. For the first time in more than a decade, the Democrats are in control. What that means for business will unfold over the next 60-day session. But the Dems need to do some handholding with the Republican-dominated House if they want to move forward on issues.

Those significant to the business community include everything from a budget shortfall of $618 million to bills that would affect transportation, illegal immigration and health insurance reform. 

In terms of composition, the official count for this year’s House of Delegates is 53 Republicans, 44 Democrats and two independents. One unfilled seat will be decided in an election next month. The Democrats have a narrow lead in the Senate, with 21 seats compared to 19 Republican seats. Then there’s Democratic Gov. Timothy M. Kaine, intent on making his mark midway through his term.

We hope you will visit our new General Assembly blog regularly. And if you want to weigh in on an issue with a legislator, the Capitol is offering a toll free constituent viewpoint hotline at 1-800-889-0229.

Starting tomorrow, the line will be answered by operators from Jan. 9 thorough March 7, from 8:30 a.m. to 5 p.m. They will record the caller’s message and forward the information to the appropriate legislator. While operators can’t transfer calls, they can provide constituents with legislators’ phone number. Who says customer service is dead?

State senators head to the Capitol today under Democratic leadership for the first time in 12 years. Does that mean a new era for business in the Senate chamber?

Probably not.

Senate-veteran Dick Saslaw, now Senate majority leader and also chairman of the Senate Commerce and Labor Committee, has long been known as a business-friendly Democrat. In addition, Senate Democrats and moderate Republicans, who previously controlled the Senate, have voted similarly on many business issues.

When Virginia Business sat down with four state political observers for a political roundtable in November, the overwhelming consensus was that Democratic leadership would not change much in legislative outcome on business issues. The Finance Committee, another committee controlling legislation important to business, will also not change drastically under Democratic control. “We’re talking about business-friendly Democrats who are not going to dramatically move the Senate in a different direction than it was during the [former Senate Finance Chairman John] Chichester years,” said Dr. Stephen Farnsworth of the University of Mary Washington.

Still, there’s a lot at stake for business this year. Outcomes of legislation on immigration reform, work-force resources, health insurance, transportation and how to make up for a budget shortfall could be important to preserving Virginia’s business-friendly reputation.

In the House of Delegates, Republican Del. Terry G. Kilgore of Scott County takes over chairmanship of the House Commerce and Labor Committee from Del. Harvey B. Morgan, R-Gloucester. The Richmond Times-Dispatch calls Kilgore an ally of public utilities, telephone companies and payday lenders.