Mark Warner said Jan. 20 that he remains open to the idea of increasing fuel
taxes in Virginia, but will fight efforts to divert other revenue from the
state’s transportation fund, according to local media.
said his tax reform plan would boost Virginia’s road-building budget by more
than $1.3 billion over the next six years and eliminate the need for raiding
the transportation trust fund to pay for other programs.
have to put the trust back in the transportation trust fund,” Warner told
reporters at a press conference in Richmond.
bulk of the additional funding would come from an existing tax on auto
insurance premiums. Lawmakers voted in 2000 to earmark those funds for
transportation projects, but the tax proceeds have often been diverted to other
programs to balance the budget.
said the revenue generated by his package of tax code changes would stabilize
the state’s general fund and eliminate the need for raiding the transportation
fund, the newspaper reported. The governor proposed increasing the state sales
tax on goods by a penny on the dollar, reducing the sales tax on groceries and
revamping the income tax structure as part of a plan that would generate more
than $1 billion in new revenue over the next two years.
governor’s two-year, $59 billion budget proposal includes $392 million in new
legislators have proposed increasing the state’s fuel tax to raise additional
money for highways, but Warner said that’s not necessary.
tried to present a plan that allows us to keep our commitments and meet our
core obligations,” said Warner, although he added that he is keeping an open
mind on a fuel tax increase.
the needs in transportation are enormous,” Warner said.