Back to Richmond

Democratic Gov. Timothy M. Kaine made it official today, calling the legislature back to Richmond on June 23 for a special session on transportation. He also rolled out his own plan to hike taxes to the tune of about $800 million per year.

Among the highlights, taken straight from the governor's press release:

·        Increases the existing statewide motor vehicles sales tax from 3% to 4% and dedicates all motor vehicle sales tax funds to maintenance;
·        Increases the statewide annual vehicle registration fee by $10 and dedicates those funds to maintenance.

Kaine has also called for more regional taxes for Hampton Roads and Northern Virginia, as well as a statewide increase in the grantor's tax on selling a home around the entire commonwealth.

Republicans have thus far been less than pleased with the plan. From Republican Lt. Gov. Bill Bolling's press release:

"Since he took office in 2006, Governor Kaine has relentlessly tried to raise taxes on Virginia's families to generate additional funding for transportation, even though such tax increases are unnecessary and are not supported by the vast majority of the people of Virginia.  The Governor's most recent transportation proposal is just the latest chapter in this never ending saga and I seriously doubt that it will be well received by Republicans in the General Assembly or the people of Virginia."

"While there is never a good time to raise taxes, I am also concerned by the fact that the Governor and Democrats in the General Assembly want to raise taxes by over one billion dollars at a time when economic growth is slowing, fuel and food costs are skyrocketing, and working Virginians are having a harder time making ends meet.  Increasing taxes now will unnecessarily hurt the economy and kill needed jobs.  In addition, Governor Kaine's tax increase plan is regressive and will hurt those least able to pay the most, including senior citizens on a fixed income and young families."

Other notable reactions will be added when they arrive...

UPDATE 1

From the House GOP Caucus:

"It is sad that in the middle of a recession, when average working Virginians are struggling to make ends meet, the Governor and the Democrats want to raise taxes by more than a billion dollars," lamented Delegate [Morgan] Griffith, [R-Salem, the house majority leader].  "

With gas prices over $3.50 a gallon, and the price of food sky-rocketing, working Virginians, young families and seniors on fixed incomes are especially hurting. To have government reach into their pockets again is something our caucus cannot support."

"Raising taxes now will pro-long the recession, cost jobs, and is just not needed. If members of the Democrat Caucus are intent on supporting these massive tax increases, I am very optimistic about our prospects in 2009."

UPDATE 2

From the Senate Democratic Caucus:

"We are pleased Governor Kaine recognizes the need for a statewide solution when it comes to transportation funding," said Senate Democratic Caucus Chair Sen. Mary Margaret Whipple (D-Arlington).  "Democrats are united in trying to find an effective and workable solution to our ever-growing transportation problems."

Senate Majority Leader Dick Saslaw, (D-Fairfax), who will lead the Senate negotiations with the House during the upcoming special session said, "We want to ensure that any transportation plan is fair to every region of the Commonwealth, provides enough funding, and has out-of-state drivers paying their fair share for the roads they use."