
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, November 18, 1993                   TAG: 9311180121
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: BONNIE V. WINSTON STAFF WRITER
DATELINE: RICHMOND                                LENGTH: Medium

GAS TAX INCREASE OPPOSED

Despite claims by a powerful business and government coalition that Virginia's transportation system is in crisis, there appeared to be little support Wednesday among leading state legislators - or Gov.-elect George Allen - for an increase in road-building taxes.

"I'm not for a gas tax increase," Allen said Wednesday, referring to the main highway levy. "I think the people of Virginia, the taxpayers, want to make sure that state government, especially the Department of Transportation, is running as efficiently as possible before you start asking them for increases in gas taxes."

A senior member of the Senate Finance Committee, Sen. Stanley Walker, D-Norfolk, said raising the 17.7-cent-per-gallon gas tax may be difficult in a "no-tax climate."

Because Allen and virtually all legislators were elected on no-new-taxes platforms, "Another initiative like this . . . is going to take a lot of time and a whole lot of scrutiny," Walker said. "For this session, I just can't see where it's possible."

Government and business leaders told a legislative study committee Tuesday that Virginia is losing its competitive edge to Maryland and North Carolina because of its lagging road-building program.

The state Transportation Department estimates that Virginia has $52 billion in road construction needs through the year 2010, and can raise $27 billion from current sources.

Virginians for Better Transportation, a coalition of almost 200 businesses, individuals, trade associations and government agencies, on Tuesday suggested the use of various levies to raise up to $600 million annually.

The projects would ease gridlock mainly in Hampton Roads and Northern Virginia.

In addition to the state tax on gasoline, drivers pay 18.4 cents a gallon at the pump in federal taxes.

Lawmakers were told Tuesday that inflation has eroded the multimillion-dollar boost given transportation by gas- and sales-tax increases in 1986.

"That was supposed to solve transportation needs until the next century," Allen said Wednesday. ". . . What happened to all that money? Has it been used properly? Or have they spent too much on consultants and studies, rather than action?"

Gov. Douglas Wilder, who will propose a two-year budget before leaving office in January, said on Monday he sees no need for a gas tax increase.

House Speaker Thomas Moss, D-Norfolk, said he doesn't believe a gasoline tax "will fly." But he said the General Assembly will examine toll and tax alternatives.

Roads in Hampton Roads are "rapidly approaching the gridlock system they have in Northern Virginia, so something will have to be done," Moss said.

Del. Lacey Putney, I-Bedford, a member of the House Appropriations Committee, said he would support a gasoline tax increase if the current formula divvying up highway funds is changed.

"It's obvious our rural areas are going to get clobbered," Putney said. "There have to be some new revenues for us to get anywhere. I will support new revenues in the form of a gasoline tax increase, but maybe not of the magnitude" proposed by Virginians for Better Transportation.

by CNB