Time to Scrap the Compromise — Take It to the Voters

Poor Bill Howell. My heart goes out to him. He showed true leadership and resolve in fashioning the GOP transportation package and then putting his prestige on the line to get it passed. To make the deal work with members of the Senate, the Speaker of the House swallowed a number of undesirable elements, such as state and regional tax increases, that he undoubtedly found personally distasteful. Such is the nature of compromise.

But there is a difference between compromise and capitulation. Yesterday, the Senate Finance Committee deleted $250 million a year from General Fund surpluses from the GOP compromise and replaced them with more than $330 million a year through $150 fees on newly registered vehicles. That would come on top of all the increases in state and regional taxes in the compromise proposal.

It’s conceivable that Gov. Timothy M. Kaine will emerge as a force in the debate and attempt to broker another compromise, but he’s shown little inclination to do so to this point, and the intransigence of Sen. John H. Chichester and his allies in the Senate suggest that there isn’t much room for negotiation anyway. Chichester, it appears, either wants it all or nothing at all. And nothing is what he might well get.

Which is just as well. The tax-and-financing aspects of the GOP transportation package were horrendous to begin with; Chichester’s add-ons would make it even more insufferable. The best thing that could happen now is for the whole edifice to collapse. To keep the 2007 session of the General Assembly from being a complete loss, perhaps Howell can still salvage the less controversial pieces of the compromise such as the bills that reform the way Virginia builds and maintains its roads.

Otherwise, it’s clear that the political system is gridlocked over transportation taxes. Maybe it’s time to take the issue to the voters and see what they have to say. Howell’s effort at compromise does make one thing very plain: We know who the real “obstructionists” are. Reporters can paint Chichester and his allies as the “moderates” in a battle against the anti-tax “die-hards” all they want, but there is no way to spin the story to make it look like Chichester compromised and Howell didn’t. The Howell faction of the Republican Party has inoculated itself against accusations of intransigence. The Axis of Taxes now looks like the ultras.

Let’s see what happens in the GOP primaries this spring. Will the rank and file be enraged enough to throw out the proponents of Business As Usual? Let’s see what happens in the general elections this fall. How eager will voters be to boost their state and regional tax burdens after the inevitable round of property tax hikes this spring? The results could be clarifying.


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11 responses to “Time to Scrap the Compromise — Take It to the Voters”

  1. Anonymous Avatar

    “Let’s see what happens in the GOP primaries this spring. Will the rank and file be enraged enough to throw out the proponents of Business As Usual? Let’s see what happens in the general elections this fall. How eager will voters be to boost their state and regional tax burdens after the inevitable round of property tax hikes this spring? The results could be clarifying.”

    Anti-tax R’s will get slaughtered in districts where more money is needed for road improvements if they fail to bring home the bacon this session….that means NOVA and Hampton Roads.

    The only question that matters is whether or not enough R’s can get beat in these districts to give the D’s the majority.

  2. Larry Gross Avatar
    Larry Gross

    A cynical person might think an covert strategy in play – to dismember the conservatives just exactly at the point where there would be little hope of salvaging anything.

    But.. give Chichester and the others credit.. it was not a sneak attack.. that volcano had already rumbled…twice…

    I cannot feel too sorry for Howell; they put forth a really smelly proposal that had lame duck written all over it…

    that Duck was not vibrant and healthy …and that duck walked right into that whirling propeller…

    It would seem to me that if your position is essentially no more taxe increases ..

    that – you’ve got to put more on the table than thinly veiled backdoor taxes and speculative use of uncertain general revenue funds…

    Chichester and company .. rightly or wrongly.. felt that this would become a significant threat at some point in the future… when revenues dropped …and education and transporation would be fighting for what was left.

    Now I’m wondering if Gilmore runs again… what happens….

    Ah…. politics…..

  3. Anonymous Avatar

    I tend to agree w/ Larry – The house proposal was nothing more than a lame duck.

    I urge all of you take a look at the junk mail that gets sent to your house once the Republican primary battles get underway…..I bet many parts of the House proposal, i.e., fee increases, tolls, etc., get labeled as tax increases….which they are.

    Members of the HOD are going to get what they deserve in Nov….thrown out of office.

  4. The process that produced the so-called compromise transportation
    plan was flawed.

    It was a political deal designed to meet political goals.

    Good planning and transportation goals were not the primary objective of this process.

    Virginia will continue to suffer until we produce a program for our
    state similar to Envision Utah which I have discussed on this blog.

  5. James Atticus Bowden Avatar
    James Atticus Bowden

    Anon: Re- “Anti-tax R’s will get slaughtered in districts where more money is needed for road improvements if they fail to bring home the bacon this session.”

    This is precisely why I call this the 07 Transportation Tax Panic, as opposed to the 02 Transportation Tax Scam.

    The comedy that plays as tragedy that is farce is what the ‘bacon’ is.

    For Hampton Roads, Tidewater, it is , drum roll please…

    1. A plan that increases congestion. Increases.

    2. New, higher, more taxes from Republicans. Republicans.

    3. Unelected, unaccountable, unseparated powers Regional government which the voters explicitly rejected twice at the polls. An open invitation to corruption in a new level of government.

    Some bacon (no offense to Mr. Bacon intended).

  6. Larry Gross Avatar
    Larry Gross

    “For Hampton Roads, Tidewater, it is ,”.. followed by a list of really bad stuff…

    OK.

    Questions

    1. – What do you actually want?

    2. – With regard to your current MPO – if you could what would you replace it with?

    3. – Your GA reps – in your view are they representing the interests of the folks in TW/HR such that they will be re-elected or thrown out of office?

    4. – What SHOULD they have done in the GA different from what they did?

    5. – Where should the money come from to upgrade/improve TW/HR transportation system?

  7. Reid Greenmun Avatar
    Reid Greenmun

    {sigh} – here we go again. Larry, I have given the GA folks a better transportation plan for TW/HR – I have provided them with a better regional decision-making process too. I have provided them with a far superior “package” of regional transportation infrastructure improvements – AND a plan to fund them.

    The problem are the armies of lobbyists from our region’s entrenched “Growth Lobby” – that being the local wealthy business cabal that keeps pushing the GA to stick to a BAD PLAN. Mr. Bowden is correct – the plan the local Growth Lobby wants doesn’t reduce traffic congestion – it funds special interest so-called “economic development” dreams – or “visions” the local self-proclaimed “business LEADERS” like to call their self-serving schemes.

    It is the fruits of the rotten apple known as the Hampton Roads Partnership.

    Our HRPDC (Hampton Roads Planning District Commission) and its sister
    MPO” (they are in reality one in the same down here) are taking their marching orders from the local Growth Lobby – and from all-appointed people that “won” (were installed) into our local city governments to do the bidding of their real masters – that being the wealthy business cabal that runs the Hampton Roads Partnership.

    What is WRONG in TW/HR is that the local yokel “business community” is fixated on an outdated “vision” – and THEY are holding our transportation funding and improvements hostage until THEY GET THEIR WAY (stomping their feet and STILL fuming over getting their butts kicked back in Nov. 2002).

    The two poster children that are PROOF of what I am sharing with y’all are:

    1. The dumb way-to-expensive $4.4B Port Bridge Tunnel – instead of spending $2.2B to add 4 more lanes/tubes to the over burdened HRBT (Hampton Roads Bridge Tunnel). Hint: use RAIL to move the new multimodal containers in and out of the expanded port.

    2. The fixation with trying to create an all-appointed, quisi-government “layer” of regional government that the local Growth Lobby can bribe/staff/control – thus creating a means to steam roll over voters, residents, and especially TAXPAYERS. Gov. Gilmore stopped this foul scheme in its tracks back in 2000 – by vetoing HB-1474 – regional economic development authorities. The local “business community” has been fuming ever since. THEY must have control dammit!!!

    It’s a diversion

    Folks – this is NOT about roads and taxes in some bill – this is all about standing up REGIONAL AUTHORITIES so the local business community can then control Billions of “local taxes” in the future.

  8. Larry Gross Avatar
    Larry Gross

    Reid – I agree.

    I’m asking about the way forward.

    Can you post a summary version of your point paper?

    thanks!

  9. Jim Bacon Avatar

    Let me propose a possible solution to some of the concerns expressed here, most of which I agree with. I, too, find the idea of unaccountable regional authorities to be a terrifying prospect — basically, a mechanism by which vested interests will be enabled to loot the public at will. But I also agree with Larry that it makes sense to raise revenue locally/regionally without running it through Richmond, where politicians and bureaucratics get their vigorish.

    The solution is a new mechanism: Corridor Transportation Authorities. I have been advocating the idea of using congestion pricing as a way to allocate scarce roadway capacity. The way to keep faith with toll payers is to create Corridor Transportation Authorities that administer the congestion tolls, collect the revenues and decide how they will be spent. The CTAs would be statutorily required to reinvest surplus revenues on projects that would improve mobility within the corridor.

    On a related point, Ray Hyde has pointed out an interesting contradiction in my mantra that transportation-funding mechanisms should be based on a user pays system. Rays says we can reinvest congestion-pricing proceeds into mobility-enhancing projects — from road improvements to mass transit — but we’ll have to give up the pretense that everyone will required to pay the full costs of their transportation mode.

    That’s true. There is no ideal world, there is no perfect system. But at least my schema would guarantee that congestion toll payers would benefit from the expenditure of surplus toll revenues. If a CTA decided to invest surplus revenues in Bus Rapid Transit service for the same corridor, for instance, the result would be a reduction of congestion within the corridor. Reduced congestion under my schema would translate into lower tolls — so the toll payer would benefit.

  10. James Atticus Bowden Avatar
    James Atticus Bowden

    Jim: Re “The way to keep faith with toll payers is to create Corridor Transportation Authorities that administer the congestion tolls, collect the revenues and decide how they will be spent.”

    Remember Madison – divide the power to collect money through taxes, spend it and adjudicate disputes.

    Larry Gross: Reid and I are on the same sheet. Make a vertical priority list – put up tolls if you like – and when money is available…

    1. Improve the US 460
    2. Build rail and road from the Port to 460
    3. Add tubes and bridges at Hampton Road Bridge Tunnel
    4. Fix the turn lane corner of VA 171 and 782 near my house where they widened the intersection with new lanes and the brand new turn lane (not high tech) doesn’t drain properly – and floods.

  11. Larry Gross Avatar
    Larry Gross

    “Corridor Transportation Authorities”

    I’m supportive of the concept and the motivation behind the concept but we have some serious issues.

    For instance, MPOs are, in fact, THE official Regional Authorities that control transportation priorities and allocations.

    Like it or not -these things are Federally mandated and the Feds enforce this with strings on the Fed money.

    i.e. don’t do MPOs and lose Fed money.

    Ditto with the EPA.

    If you are in a non-attainment area – you are not going to build ANY road that is not approved by both the EPA and the MPO.

    I too strongly.. dislike the WAY that our MPOs have been co-opted by those whose interests are not the public interest but I simply don’t see a realistic path to changing this.

    This is even farther out in left field that wishing for a 20 cent gas tax increase…. it’s actually something that our own GA cannot do.. even if they were convinced to do it.

    The closest they have come is the Northern Va Transportation Authority which basically determines NoVa priorities that are Recommended to the TPB of MWCOG for approval – which requires two things for any project to be included in the TIP and the CLRP.

    1. – there must be a concrete source of funding

    2. – the project must conform to EPA attainment ceilings.

    I have idea on how to deal with the situation that I can share if anyone wants to hear them… but methinks the current approach in TW/HR is a “paper” idea rather than a do-able strategy…

    ditto with Corridor Transportation Authorities.

    I’m not saying they are impossible.

    But there is no way that MPOs are going to be abolished without action by Congress – a really, really LONG SHOT.

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