Don’t Tax You, Don’t Tax Me. Tax that Fellow Behind the Tree.

Congressma Randy Forbes

by James A. Bacon

Congressman Randy Forbes, R-4th, whose district runs from Chesterfield to Chesapeake, has asked Gov. Bob McDonnell to scrap his proposal to place tolls on Interstate 95 near Emporia. The tolls will “disproportionately burden” residents of a rural region already suffering major economic challenges, he wrote in a letter to the governor.

Forbes’ high-profile intervention bolsters efforts of Virginia Trucking Association, national trucking organizations and local governments affected by the tolls to mobilize opposition to the project. Under a plan recommended by the Virginia Department of Transportation, passenger vehicles would pay $4 and trucks $12 at the main tolling station and smaller sums at on- and off-ramps. The tolling would raise an estimated $35 million to $40 million yearly for improvements in the I-95 corridor.

The congressman’s critique of the tolls is spot on… yet unsatisfying. As he concedes in his letter, “I understand the financial challenges facing the Commonwealth in meeting its transportation needs are great.” Yet nowhere does he propose an alternative solution. His answer is to just say, “No, not here.”

That said, Forbes does have a point. If you live in Emporia, Greensville County or Sussex County and use the Interstate for local traffic, the tolls will pose a disproportionate hardship, made all the more onerous by the fact that per capita income in Emporia is 30% lower than the statewide average. Moreover, as Forbes rightly observes, the tolls will discourage economic development in the “economically challenged” communities.

Politically, here is the nub of the problem: People go ballistic whenever you try to put tolls on roads that they used to use for free. Just ask the residents of Hampton Roads who vociferously oppose the tolls on the Midtown and Downtown tunnels. At least those tolls are paying for a major upgrade that will address traffic congestion there. The residents of Emporia and environs won’t even get that consolation. There is no local congestion, and the tolls will pay for improvements up and down the corridor.

Conversely, no one is up in arms over a the proposed building of a new Interstate-quality highway between Petersburg and Suffolk, the U.S. 460 Connector, because local residents would be able to continue using the existing highway for free. Nothing is being taken away from them. (The estimated $1.8 billion cost and economic justification for the project are an entirely different matter.)

Forbes is right to say the tolls would create a major injustice. A toll discounting scheme for local traffic, under consideration by the McDonnell administration, would do nothing to change that fact.

On the other hand, McDonnell is quite correct when he says that the state is running out of money for new construction projects. He is borrowing up to the limits of the state’s AAA-rated borrowing capacity, and he’s trying to leverage public investment with private dollars through public-private partnerships, but there still aren’t enough dollars to go around. I presume that Forbes is not willing to go out on a limb and demand an increase to the motor fuels tax. If Virginians don’t want to watch their roads, highways and bridges systematically degrade, what alternatives does he propose?

That’s the root problem of Virgina’s intractable transportation-funding issue: Everybody wants more spending on roads, highways and rail, but they want someone else to pay. Virginia needs to return to a user-pays system in which the users and beneficiaries of transportation projects (which include landowners whose property values increase) are the ones who should pay for the improvements. If the beneficiaries of a project can’t be persuaded to pony up the funds through tolls, proffers or special tax districts, the project probably cannot be economically justified.


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Comments

  1. reed fawell Avatar
    reed fawell

    Good article. And James Bacon’s last paragraph is right on target, in my view. Plus, I’d add:

    1. That the state needs to better understand and factor in how proposed roads (or their improvement) best pay for themselves by generating real long term economic advantage to the state and all its citizens.

    2. And do 1 above, instead of compounding existing and systemic problems, if only by being very expensive short term fixes to those ever expanding systemic problems.

  2. larryg Avatar

    there’s an easy fix to this. Since EZ Pass is how the tolling is done then give each local resident an EZ-Pass with a credit balance.

    You can do this also for HOT Lanes if you want. Give the low income folks a credit balance EZ-pass.

    Mr. Forbes could have suggested this. He could have suggested other things like EZ-pass not assessing a toll if you get on at one ramp and get off at the next or the two ramps down.

    there are a number of ways to do this but Mr. Forbes is yet another feckless politician …. IMHO.

    As far as VDOT doing a “better job” of figuring out costs – and cost-benefits, it’s pretty simple right now. Unless we do something different, the current level of gas taxes can pay for maintenance and operations and literally nothing more and in the case of the Interstates, not even enough – thus the tolls.

    Tolls are the only real way to finance roads now days. Do you think Randy Forbes would advocate increased gas taxes?

    ha ha ha…

    What is Mr. Forbes “solution”? .. let me guess.. “just say no”.

  3. Re: Gas tax…..so we get lower gas prices but subsidize everyone else…primarily non-residents (and the roads still suck?)….. because we dont have the money for improvements?? What’s the point of the tax? Drive through states where gas prices/taxes are higher….it’s not any better. Hmmm..where’s the money going???

    Re: tolls…..they are a tax….get over it……unless the “special interests” get a special exemption from the tax…..that’s VA politics in a nutshell.

  4. By the way….Interstates were not designed for local traffic…..who are we stealing from here…Peter or Paul?

  5. larryg Avatar

    re: local traffic

    excellent point

    re: tolls/taxes/ where do the taxes go?

    one significant advantage of tolls – transparency and accountability.

    you KNOW where the toll money is supposed to go and you can see with your own eyes if it has

  6. reed fawell Avatar
    reed fawell

    Tolls, like the Md. Bay Bridge itself, are soaring in Maryland. Locals who use Bridge frequently (often daily) getting a break via EZ pass, but still it must hurt.

  7. larryg Avatar

    well what would REALLY hurt would be if there was no bridge at all or the bridge was so starved of money that it was falling down and unsafe.

    The Chesapeake Bay Bridge Tunnel would never have been built without tolls, never had a second span built without tolls and you would not want them skimping on maintenance either.

    When you pay a toll you can see what you are getting for your money AND you have the ability every trip to say “no thanks” if you think they are charging too much or you are not getting your money’s worth.

    I miss the days though when one would take a ferry across – I still like ferry crossings to this day… our last one from Vancouver to Victoria and back to Washington! Neat trip!

    1. reed fawell Avatar
      reed fawell

      “Last spring, the Maryland Transportation Authority (MDTA) announced a plan to first double tolls at the Bay Bridge, from the current $2.50 one way to $5 this fall and more than triple the toll to $8 by July 2013. The proposed hikes were part of a larger plan to increase the tolls at bridges and tunnels across Maryland in an effort to raise revenue for future transportation projects and to maintain the safety and appearance of the existing structures.”
      See http://www.mdcoastdispatch.com/articles/2011/09/23/Top-Stories/New-Bay-Bridge-Toll-Set-At-4
      Maryland’s going Broke, Larry –
      It’s Spending is way out of control. Now its trying to to bail itself out on the backs of the working man, having run a large percentage of the “Billionaires and Millionaires” out of the State.” Some 30% have left the tax rolls in the last few years, I am told.
      And Yes, I loved that old Ferry across the bay, remember it quite well.

  8. larryg Avatar

    Reed – if the money is going to go to make sure the existing bridge is safe and to start setting aside money for a new bridge/added capacity why is that a bad thing?

    I’d rather see tolls to pay for bridges and infrastructure than taxing rich people.

    I think that people who use the bridge should be the ones to pay for it….

    just as people that used the ferries were expected to pay for the ferry.

    I think the closer the nexus between a tax and the beneficiary of the tax – the better the tax.

    and the more distance there is between a tax and the user, the worse the tax.

    just my opinion. yours?

  9. reed fawell Avatar
    reed fawell

    What’s happening is the working folks on Eastern shore are paying for projects ALL OVER THE STATE cause they HAVE TO cross a toll bridge that’s been making the State a big profit for years. SO totally unlike the Va. example raised by James Bacon above.

  10. larryg Avatar

    Reed – do you think the CBBT makes a profit on it’s tolls? Separate question – do you think Va commuters get a lower toll rate?

  11. reed fawell Avatar
    reed fawell

    As to your questions, I have no idea. As general rule, I believe tolls should be used only to maintain what the toll payer is in fact using. Otherwise its equivalent to taxation without representation. And Government cannot otherwise be trusted as proven since the dawn of human rule.

    As to Md. Bay Bridge, see below.

    Delegate Mike McDermott (R-38B) … delivered a passionate argument against the increases that resulted in multiple standing ovations from the audience.

    “The Bay Bridge is a cash cow in the state of Maryland,” said McDermott, despite the MDTA stating the opposite. “I don’t see the Bay Bridge as a crisis.”

    In his opinion, the toll hikes were unnecessary to maintain the bridge. “The Bay Bridge stands on its own merit at $2.50,” he said.

    McDermott remarked that, while all tolls collected from MDTA facilities went back to those facilities, money collected from the Bay Bridge could be shuffled over to support a different bridge or tunnel in another part of the state. “They’ve lumped everything together,” he said.

    Business owner Alberta Harrison agreed with McDermott. “The bridge, since its inception, has always made money,” she asserted. Harrison wondered why the hikes were happening now and why they were so extreme. Harrison echoed Jacobs’ warning that increases could lead to economic trouble. “There are a lot of businesses who have been pushed to the edge,” she said.

  12. larryg Avatar

    would you be okay with the toll covering existing maintenance and operation and part of the toll going into a fund for future capacity improvements/new bridge?

    Maryland (and Florida) are now co-mingling their toll roads using the more lucrative ones to subsidize the ones that lose money. The ICC is a money loser that is being subsidized from other tolls and gas taxes.

    Of course in pre-toll days.. the ICC would also not pay for itself but without tolls, we would never know that.. it would be just another road that got built and used.

  13. Peter Galuszka Avatar
    Peter Galuszka

    Forbes is right on this one. McDonnell is sticking a toll where some of the politically-weakest people with the least possible strength for blowback reside. The siting smacks of the proverbial “yankee trap” in which southern sheriffs erect strict speed traps at key north-south routes knowing that the people from New York or New Jersey on their way to Disney World with a carful of kiddies aren’t going to trundle all the way back to Cornpone County months later to challenge the speeding ticket.
    Here’s an idea to solve Mr. Bacon’s problem. Why not stick such a toll booth somewhere on I-95 or I-495 in the heavily trafficked parts of Northern Virginia? You’d rack up more money faster than you can say “Ka-Ching” and the road issues are the worst there. Doubtful I-95 from Petersburg to the Carolina line needs all that much maintenance.
    How ’bout it Jim — this is just your kind of “pay as you go!”

    1. I’m not sure what the latest thinking is inside the McDonnell administration, but there was a point at which they were talking about a toll between Richmond and Fredericksburg as well. And the toll proceeds would be used to improve I-95 south of Fredericksburg, so at least there would be some connection between tolls paid and improvements made. I don’t know if that idea is still on the table or not.

      This is not my kind of pay-as-you-go.

      But, then, no one in power is interested in my kind of pay-as-you-go.

  14. larryg Avatar

    Geeze Peter, have you heard..there IS going to be a TOLL on I-95 North and the I-495 tolls go live the end of THIS YEAR!

    Hampton Roads is going to have their tunnels tolled.

    RBV had an excellent observation. Since when is an interstate supposed to primarily serve as a local road in the first place?

  15. larryg Avatar

    the earlier plans to collect tolls south of Massaponax/Fredericksburg have gone away so the basic idea is to levy the toll near the NC border only – for now.

    But I’d also point out that the plans for HOT lanes on I-95 are from the beltway to just south of Fredericksburg (in two phases, with the first phase being the beltway to Garrisonville/Rt 610 in Stafford).

    Phase I of the I-95 HOT lanes is pretty much a done deal with initial operation scheduled for 2015 but again be aware that at the end of this year ALL of I-495 in Va will begin tolling and that includes the part used by people traveling north and south of I-95 – although the mainline will remain untolled so it will be possible to not pay a toll if you use the general purpose lanes.

    free HOV will be 3 or more. My bet is that many people who are just trying to get through the NoVa area on I-95 will gladly pay a toll to use a less congested lane but I guess we’ll have to wait and see.

  16. How come it’s OK to toll the Pennsylvania Turnpike, the New Jersey Turnpike, the Garden State Parkway, the George Washington Bridge, the Mass Pike, etc., but not I-95 near North Carolina?

  17. Peter Galuszka Avatar
    Peter Galuszka

    LarryG,
    A HOT lane is not exactly the same as a toll for everybody.

  18. larryg Avatar

    re:HOT. true. would you prefer HOT to regular Tolls?

  19. Tolls are a disaster. They are exactly equal to charging some people $3 a gallon in additional gas tax while charging others nothing.

    We will have these built and when we find what an expensive folly it is we will buy out the buildervendors at exorbitant prices and go back to a nice environmentally friendly gas tax.

  20. larryg Avatar

    well we’re going to find out, at least in Georgia:

    Ga. voters to decide whether to pay sales tax for transportation projects to ease traffic

    ATLANTA — Voters in metro Atlanta will decide Tuesday whether to levy a penny sales tax to fund transportation projects in their communities.

  21. “Tolls are a disaster. They are exactly equal to charging some people $3 a gallon in additional gas tax while charging others nothing.”

    The reason others are being charged nothing is that they are not using the toll road.

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