Business groups want new taxes to fund transit improvements

Local business groups say without new taxes and fees, officials can do little to solve the state’s growing transportation crisis.

The Greater Manassas-Prince William County and Prince William Regional chambers of commerce, as well as other business groups, signed a resolution in July asking for a new, dedicated source of transportation funding. Bonds, existing tolls and public-private partnerships — like the High Occupancy Toll lanes on the Capital Beltway — will not solve the problem alone, the resolution states.

The declaration’s release was delayed to give business leaders ample to time to review the document, said Northern Virginia Transportation Alliance President Bob Chase.

“The Northern Virginia business community believes Virginia’s transportation funding crisis poses a serious threat to the commonwealth’s economic recovery and the long-term prosperity and quality of life for every Virginian,” stated Chase in a letter.

The resolution comes as both Virginia gubernatorial candidates — Democrat R. Creigh Deeds and Republican Robert F. McDonnell — are discussing their plans to fund transportation improvements statewide.

Deeds told reporters last month “all options are on the table” when it comes to the possibility of raising taxes for transportation. During a visit to News & Messenger last week, McDonnell said most Virginians are opposed to new tax increases, and touted his plan to sell state liquor stores to fund transportation projects.

McDonnell said the concept isn’t new and pointed out that 32 other states have privatized liquor sales. He called state-run stores “a vestige left over from Prohibition.”

Unloading state liquor stores could net $500 million up-front, said McDonnell. The stores could then bring in $195 million annually as the state could recoup a portion of the individual store’s profit, he added.

Prince William Regional Chamber President Laurie Wieder, who supports a public-private partnership to convert carpool lanes on Interstates 95 and 395 to toll lanes, said some sales and engineering firms cannot do business before 10 a.m. or after 3 p.m. due to poor regional traffic conditions.

“Businesses in essence are paying a tax right now, but they’re just paying a tax in the form of lower productivity,” said Wieder. “If you were to ask our business members you would find some who were willing to pay an additional tax.”

Though the chamber supports the resolution, Wieder said new taxes are their least favorite option. “We encourage those people who we have elected to come up with some solutions to some very real problems to our businesses and our citizens,” she added.

While it maintains new taxes are only part of a broader solution, NVTA’s resolution states taxes that go to fund transportation have largely remained unchanged since 1987. It estimates Virginia needs more than $100 billion in unfunded transportation improvements — including $3.7 billion to repair aging bridges.

As demand on the transit network grows and the state depends more on federal money to fund improvements, it will be unable to provide federal matching dollars to get projects started. For every $20 the state lacks in matching dollars it forgoes $80 in federal money, the resolution states.

More than $400 million from Virginia’s Transportation Trust Fund for construction have been diverted for maintenance, and funds to localities have also been reduced, making it harder for localities to meet growing demand, stated the resolution.

Staff writer Uriah A. Kiser can be reached at 703-878-8065.