Northern VA Delegation Working to Fix Current Metro Funding Proposal

As part of his outgoing budget, Governor Terry McAuliffe proposed a plan for dedicated funding for Metro. The proposed $150 million annually would represent Virginia’s share of $500 million a year in additional, dedicated funds that Metro says it needs to ensure the transit system’s safety and reliability. The proposed funding is conditioned upon the District and Maryland committing to their share of funding and that the Metro board be replaced by a temporary, five-member “reform board” to improve the agency’s governance.

The plan proposes three increases in Northern Virginia taxes:
*a ten cent per $100 value increase in the grantor’s tax, bringing the levy up to a total of 25 cents per $100 value;
* a one percent increase in the transient occupancy tax from 2 percent to 3 percent; and
*a floor that would be applied to regional gas tax levies, resulting in an approximate increase of two cents per gallon.

In addition, the plan calls for $85 million of the $330 million per year that the Northern Virginia Transportation Authority currently receives to be dedicated to Metro funding.

The Northern Virginia delegation to the General Assembly met to discuss concerns with the plan. While some were hesitant to increase taxes after such a significant increase in 2013, there seemed to be broad resistance to diverting a whopping $85 million from the NVTA funds, essentially robbing from funding for road projects in Northern Virginia while the state makes no investment from the general fund.

It is anticipated that the funding package will evolve over the course of the legislative session and as deliberations on the biennial budget develop.  Stay tuned!