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February 14, 2013

The Honorable Frank Wagner The Honorable Thomas Norment

The Honorable John Watkins The Honorable Janet Howell

The Honorable Walter Stosch The Honorable Chris Jones

The Honorable David Albo The Honorable Beverly Sherwood

The Honorable John OBannon The Honorable Onzlee Ware

Dear Senators and Delegates:

I want to applaud the Senate and House of Delegates for each passing meaningful

legislation to address Virginias long term transportation needs. While there aresubstantive differences in the plans approved in the Senate and House of Delegates, Ibelieve that these competing plans provide a solid framework for further negotiationsthat could enable us to resolve Virginias long term transportation needs this year.

Now is the time for compromise and consensus building. It is not the time to draw linesin the sand or take positions from which one cannot retreat. If all parties involved inthese negotiations keep an open mind and express willingness to compromise, I amconfident that an acceptable transportation agreement can be reached this year.

Based on the plans adopted by the Senate and the House of Delegates, it is obvious

that any final transportation agreement must include two critical elements in order toobtain 21 votes in the Senate and 51 votes in the House of Delegates. These include:

First, an agreement must include ways to generate significant new revenue forhighway construction and maintenance, most likely in the form of higher taxesand fees. For example, through a modest increase in the gas tax as proposed bythe Senate and an increase in vehicle registration fees as proposed by theGovernor, significant new revenue could be generated for transportation. This

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Senators and DelegatesFebruary 14, 2013Page Two

will require willingness on the part of many Republicans to compromise on theissue of higher taxes and fees, and I encourage them to do so.

Second, an agreement must include the transfer of significant general fundrevenue to the Transportation Trust Fund. While the legislation approved by theSenate includes a modest general fund transfer, I believe a more significanttransfer will be required to enable us to reach agreement. For example, theGovernors proposal to increase the amount of the existing state sales tax that isdedicated to transportation from .50% to .75% would generate $280 million peryear in additional funding for the Transportation Trust Fund. This is a morerealistic approach that will require willingness on the part of the Senate to

compromise.

Finally, I applaud the Senate for including a meaningful regional component in theirtransportation plan that would enable localities in Northern Virginia, Richmond andHampton Roads to generate significant additional revenue for regional transportationpriorities. In order to generate the amount of money we will need to adequately addressour transportation challenges I hope that a substantive regional component will be partof a final transportation agreement, and I encourage the parties to continue working tofind a way to make this possible.

Once again, I want to congratulate both houses of the General Assembly for their

willingness to work with us in trying to find a long term transportation solution forVirginia. A solution to this important issue has eluded us for far too long. We have ahistoric opportunity to solve this problem this year and I am confident that we can do soif we continue to work together and are willing to compromise. The people of Virginiaare counting on us to get something done. Lets not let them down.

Very Truly Yours,

WILLIAM T. BOLLING

Lieutenant GovernorCommonwealth of Virginia

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