New State Budget Quandary Develops

VHCA (2/29/2008)

In a decision announced today, the Virginia Supreme Court overturned the 2007 Transportation Plan that would have allowed the Northern Virginia Transportation Authority to tax for transportation projects in Northern Virginia.  This development throws a "monkey wrench" in the budget negotiations pending in the Virginia Legislature.  The Supreme Court ruling, will likely force the Governor to introduce legislation increasing the fuel or sales tax or imposing some sort of tax revenue measure.  This decision could make it necessary for the Governor to call for a Special Session of the General Assembly.

Governor Kaine, Attorney General Bob McDonnell, and Speaker of the House Bill Howell today released statements in response to the ruling.

“I am disappointed by the Supreme Court’s finding that the limited authority to impose taxes granted by the General Assembly in 2007, by an overwhelming vote by both bodies, was unconstitutional,” said Governor Kaine. “I remain committed to working with the General Assembly to ensure that the Commonwealth provides adequate funding for our transportation needs.  Over the next few days, my legal staff and I will work closely with the Attorney General’s Office and members of the General Assembly to determine what alternatives are available to provide adequate transportation funding.”

“We will be reviewing this decision carefully and remain committed to sorting out the long-term prospects for the regional plans in a timely manner” said Speaker Howell.