RICHMOND--
A coalition of business leaders, including the state Chamber of Commerce, yesterday said they would support increasing the gas or sales tax to pay for transportation improvements.A letter sent to Gov. Tim Kaine, House Speaker Bill Howell and other legislators said the business groups--25 in all--had gotten together to talk about the state's transportation needs, and agreed that the state needs to invest another $1 billion a year in transportation.
"We believe the Commonwealth's transportation infrastructure is a critical component of its economic success and the quality of life of all Virginians. Additional investments of at least $1 billion annually must be made to sustain maintenance and construction costs," the letter said. "The most appropriate solution is a package of revenue generators that are simple, sustainable, and sufficient and accrue from broad-based revenue options."
The groups said those options include a "cents-per-gallon" increase in gas sales at the pump, or an increase in the sales tax of up to 1 percent, if the money is exclusively dedicated to transportation funding.
"Analysis of Virginia's severe transportation funding needs has been ongoing for over a decade. All of the arguments have been made," the letter said. "The needs are great, and the time for action is at hand. The under-signed fervently hope that a broad based, sustainable and long term statewide funding program of at least $1 billion annually will be enacted by the General Assembly and approved by the Governor in the next 60 days."
The letter was signed by several regional chambers of commerce, several contracting and construction associations, the Virginia Association of Counties, the Virginia Municipal League (which represents city governments), the Virginia Education Association, and others.
Howell, who opposes increasing taxes, said he has read the letter and thinks the coalition's position is unwise.
"I'm disappointed. I'm a little concerned that the quote 'voice of business' would be calling for a one and a half billion tax increase in a time of recession, a rough economic time," Howell said. "Their businesses are certainly going to pay the additional expenses. I think it's ill advised, ill thought out."
Howell noted that at least two associations that represent small businesses--the National Federation of Independent Businesses and the Retail Merchants Association--aren't listed as supporting that letter.
"I really don't think it's representative of the business community at all. And for good reason, it's not a pro-business thing," Howell said. "The state chamber of commerce does not represent the small business, it represents the large businesses that are going to do OK. They don't speak for business, I don't believe."
The business groups' letter comes as Kaine announced two transportation "town hall" meetings for next week. He plans to announce his own transportation proposal before those meetings are held, and is expected to set a date for a special session as well.
"He will present his transportation plan in time to have it on the table to be talked about at the transportation meetings," said Kaine spokesman Gordon Hickey.
Kaine hasn't revealed details but he, too, supports a some method of increasing statewide transportation spending.
Transportation funding is an issue lawmakers had hoped to put behind them last year with the passage of a package of tax and fee increases. But the issue was reopened earlier this year when the state Supreme Court ruled that a major component of that package, two regional transportation authorities in Northern Virginia and Hampton Roads, was unconstitutional.
Chelyen Davis: 804/782-9362
Email: cdavis@freelancestar.com