Remember last year's transportation deal, the one that granted regional taxing powers to the Northern Virginia and Hampton Roads Transportation authorities? The Virginia Supreme Court has a bit of a problem with it.

The state's high court ruled without dissent that the General Assembly overstepped its bounds in delegating taxation powers to a non-elected political subdivision. The authority "is not a county, city, town, or regional government, and thus it is not a political subdivision to which the General Assembly may constitutionally delegate its legislative taxing authority pursuant to Article VII, Section 2" of the Virginia Constitution, the court wrote.

It's not clear what sort of reaction the opinion will get in the Senate and House of Delegates, but it is certain to add a whole new wrinkle to the state's ongoing budget discussions.

Download the full opinion here.

Reaction from Gov. Tim Kaine, House Speaker Bill Howell and Attorney General Bob McDonnell:

"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 intervened in this case as is our obligation to defend challenges to the constitutionality of legislation passed by the General Assembly," said Attorney General Bob McDonnell. "The Virginia Supreme Court has spoken, we respect their decision, and we will advise our clients appropriately based on today's ruling. It remains critical for Virginia's future prosperity that we improve our transportation system."

 

"The complicated decision of the Court, and its effect on the regional components of the Comprehensive Transportation Funding and Reform Act of 2007, are disappointing to those of us who continue to support improving our roads, reducing congestion and increasing mobility for all Virginians," said Speaker William J. Howell (R-Stafford).  "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.  Fortunately, the statewide components of the Act - which by themselves incorporate the largest single investment in transportation in a generation - are working right now to improve our roads, railways, and public transit."