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Who takes the political hit?
Jessica Sabbath
Mar 05, 2008

With last year’s transportation package in shambles, the question now is who will take on the political consequences of raising taxes for transportation projects.

Last year’s compromise relied heavily on taking the political pressure of raising taxes from state legislators. The Hampton Roads and Northern Virginia transportation authorities allowed the state’s most traffic-congested areas to raise regional taxes for regional projects. 

The authorities created an ideal scenario for state legislators and local officials — increase revenue for local projects without voting for tax increases. Only problem? Not constitutional, according to the Virginia Supreme Court.

One proposal circulating is to allow local governments themselves to raise the taxes in these congested regions. Local officials say it’s unfair to make them do the state’s job.

Another proposal is an increase in the gasoline tax — a move shunned by anti-tax Republicans.

Then again, in this economy, passing any tax or fee increase is going to be tough.

While lawmakers figure out a (hopefully constitutional) plan, Virginians will be urgently waiting for a solution — most likely while they’re stuck in traffic.

Posted by Jessica Sabbath in • Business BlogGeneral Assembly
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