After respite of a few days, Virginia legislature's negotiators resume talking and trying to forge compromise over state spending and transportation.

Date published: 3/16/2006

By CHELYEN DAVIS

RICHMOND--Budget negotiators met here yesterday for the first time since the Virginia General Assembly adjourned without a budget on Saturday.

The 11 negotiators stayed behind closed doors together for several hours, discussing transportation issues, and said later that having talks in and of itself is a step forward.

"As long as everybody's talking, it's progress," said Sen. Walter Stosch, R-Henrico.

But they didn't seem to get very far, otherwise.

Sen. John Chichester, R-Northumberland, and Del. Vince Callahan, R-McLean, respectively the Senate and House lead budget negotiators, both told reporters that transportation is still the sticking point.

"We've got to get that out of the way before you get anything else," Chichester said.

The original Senate budget raised about $1 billion in taxes to put into transportation; the House is opposed to new taxes and scraped up about half that in various fees and surplus monies to put into transportation.

A standoff between the House and Senate over that issue resulted in lawmakers being unable to reach a budget compromise before the legislative session adjourned last Saturday.

Gov. Tim Kaine called a special session that will begin on March 27. In the meantime, budget negotiators are trying to find a solution to their differences, which encompass not just money but deep philosophical differences over tax policy.

Yesterday, the negotiators discussed the idea of having a lower amount of money--say, $750 million, as opposed to $1 billion, according to Chichester--dedicated to transportation needs statewide, and then raising $200 million or so in dedicated funds for Northern Virginia and Hampton Roads, the state's most congested areas.

"Finding the way to do that is the elusive part," said Stosch.

Chichester agreed.

"The House perhaps is not interested in a long-term funding plan for the state. They may be interested in some regional ones," Chichester said. But, he added, "they [the House members] don't know how to get to it. They still have no interest in 'user fees.'"

In other words, funding for transportation, not how to spend it, is still the stumbling block in budget talks.

The Senate remains opposed to using debt to pay for transportation, Chichester said--the Senate believes the House budget borrows money for capital projects so it can put cash into transportation.

Chichester said the Senate is also still doubtful that "abuser fees"--higher fees on chronically bad drivers--will raise as much money as the House believes they will.

But both sides said that they feel encouraged by the mere fact that both sides are talking--in the 2004 budget impasse, relations between the two sides disintegrated as talks went on, until meetings became 30-second spats before one side or the other stalked off.

"We're talking. I'm always encouraged," Callahan said. "We'll get this thing done."

Chichester said he's not sure they'll work out a deal before the full legislature returns for its special session on March 27.

"I'm not sure how far sometimes, these things go one brick at a time," Chichester said. "We will continue to have the dialogue and find some common ground."

The negotiators are set to meet again today.

To reach CHELYEN DAVIS: 804/782-9362
Email: cdavis@freelancestar.com

Date published: 3/16/2006