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House of Delegates unveils its transportation plan. Date published: 2/11/2006
By CHELYEN DAVIS
RICHMOND--House of Delegates' Republicans yesterday unveiled a transportation funding plan that eschews new revenues in favor of getting about $400 million a year in additional money from abuser fees, insurance premium taxes and recordation taxes. The House plan totals $2 billion over four years, which is about half of what Gov. Tim Kaine and the state Senate have proposed to fix the state's transportation problems. Kaine proposed several fee increases, plus an increase in the auto insurance premium tax, while the Senate included fee increases, plus a gas tax in its plan. The House would spend $552 million in general fund dollars in the first year of the budget for critical transportation projects; the plan also creates "revolving loan" funds for projects in Northern Virginia and Hampton Roads, by devoting $40 million from the deed recordation tax to those areas. The plan also expects $94 million in the first year, and double that in out years, from imposing "abuser fees" on chronically bad drivers. And it counts on $138 million from devoting a third of the auto insurance premium tax to transportation. Republicans announced their proposals in a press conference in which they pointed out that most House Republicans have signed on to the proposal. They said their plan is more creative, responsible and comprehensive than those from the governor or Senate. House Speaker Bill Howell, R-Stafford, said the House plan focuses on reform and on targeting problem areas, and said the governor's and Senate's plans seemed to just throw more money at the issue. "We're not even two years removed from the largest tax increase in state history," Howell said, referring to the 2004 tax increases. "There's been no public mandate for another massive tax increase. It would be wrong. The one thing we are not willing to compromise on is that we are not willing to raise taxes." House members had previously held news conferences to detail bills that would add oversight to the Virginia Department of Transportation and put more responsibility for road projects to the local level.
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