Increase in Va. gas tax could offset budget hole

RICHMOND, Va. - With a $4 billion deficit looming over the Virginia General Assembly, the need for lawmakers to raise taxes may be inevitable.

One McLean-based organization that advocates for more funding for long-neglected transportation projects says a potential solution would be to increase the gas tax.

With a report due out next month saying the current gas tax barely covers the funding needed for road maintenance, Bob Chase, president of the Northern Virginia Transportation Alliance, says raising the gas tax should be one of the ideas on the table when the General Assembly convenes in a month.

"If we want a transportation system that works, we have to pay for it," Chase says.

"The transportation funding stream that we have is producing half the money that it did 20 years ago, and yet we have millions of more people and millions of more cars."

Gov. Tim Kaine will announce his plans for a leaner budget this week, which could include cuts in funding for schools, as well as aid to the homeless and pregnant teens. Kaine has talked about rolling back some tax credits and has not ruled out repealing the phasing out of the Virginia car tax.

Republicans say they will stick with Gov.-elect Bob McDonnell's pledge not to raise taxes for any reason.

The state can expect the same level of revenue in 2011 that came in during 2005.

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