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other transportation infrastructure as an

that allows general fund spending to grow no

option to help solve congestion. Innovative

faster than the rate of inflation plus popula-

privately financed projects have been pursued

tion growth.

in Virginia, California, Texas, North Carolina,

As the economy recovers and tax revenues

South Carolina, and other states.48 The private

grow, the surplus above a budget cap would be

Dulles Greenway, a 14-mile extension of the

greater than monies that would be raised

Dulles Toll Road, was opened in 1995. It was

through a sales tax hike. Excess revenues gen-

financed through bonds and private equity

erated by such a cap could also be used for tax

and uses an electronic toll system to maximize

refunds. A budget cap would have the added

efficiency for drivers. In Richmond the 895

benefit of preventing the state government

Connector project, which will also use elec-

from overexpanding during boom years.

tronic toll technology, is being financed by pri-

In summary, Virginia's transportation

vate capital in a nonprofit structure.

funding needs could be addressed without

Fluor Daniel, a leading engineering com-

the negative effects of sales tax increases.

pany, has proposed using private funding to

Indeed, the proposed tax increases illustrate

widen the Capital Beltway by four lanes in

the failure of state politicians to properly pri-

northern Virginia.49 The "high-occupancy

oritize spending. Given that northern

toll" lanes would be separated from the regu-

Virginia's economy has been hit by the

lar lanes and fitted with electronic technolo-

national economic slowdown and the high-

gies for toll paying. While there may be

tech collapse in particular, tax increases

numerous policy reasons to oppose this par-

would come at a particularly bad time.

ticular project, it shows that private financ-

Virginia has prospered because it is a relative-

ing is available for transportation projects as

ly low-tax state. It is to be hoped that it will

an alternative to tax hikes and (mis)manage-

remain so.

ment of funds by VDOT.

Private financing and operation should be

Notes

as part of the solution to Virginia's trans-

portation needs. That would allow Virginia

1. In northern Virginia the sales tax question will

families to avoid tax hikes and allow the state

be on the ballot in the counties of Arlington,

Fairfax, Loudoun, and Prince William and the

to retain its low-tax competitiveness. In addi-

cities of Alexandria, Fairfax, Falls Church,

tion, taxpayers could avoid having even more

Manassas, and Manassas Park.

money wasted by a mismanaged state trans-

portation agency, and northern Virginians

2. In southeastern Virginia the sales tax question

Private financing is

will be on the ballot in the counties of Isle of Wight,

would reduce the risk that their highway dol-

James City, and York and the cities of Chesapeake,

lars were flowing to other parts of the state.

available for trans-

Hampton, Newport News, Norfolk, Poquoson,

Suffolk, Virginia Beach, and Williamsburg.

portation projects

Conclusion

3. Virginia Department of Planning and Budget,

as an alternative

budget data, www.dpb.state.va.us/budget/budget.

to tax hikes.

htm. This figure is spending in the operating bud-

Virginia should devote more of the taxes

get (general and nongeneral funds) as adopted by

that citizens already pay to priority trans-

the 2002 General Assembly.

portation projects in northern Virginia and

4. Northern Virginia Roundtable, "Northern

Hampton Roads. That would be feasible if

Virginia Roundtable Calls for Special Session of

the state earmarked a small additional por-

Legislature to Address Virginia's Unprecedented

tion of general fund taxes for transportation

Fiscal Crisis," Press release, February 12, 2002,

or adopted an overall cap on general fund

www.novaroundtable.org/GA/crisispr.html.

spending growth. In particular, Virginia

5. Virginia Department of Planning and Budget,

should consider a budget cap, similar to the

budget data. This figure is spending in the oper-

successful TABOR restraint in Colorado,

ating budget (general and nongeneral funds) as

12