Where Did the Money Go?

The Commonwealth of Virginia is proposing changing the tolls on Dulles Toll Road in order to create a source of funding to provide their share of the expansion of Metro through the Dulles Corridor. This, in effect, will cause the people in the corridor to provide money for this project four ways: The motorists pay to use the road. If they own businesses within the special tax district, they will pay an add-on to their assessment. If they are patrons of any of these businesses, they will have to pay the inevitable pass-through from the increased taxes the businesses pay. The Virginia residents also pay their taxes to the State.

When the State attempted to secure voter permission to raise the sales tax to fund transportation and education projects, this initiative was defeated. Notwithstanding this vote, the State did increase Virginia sales tax by half a percent in September, 2004, adding more of a tax burden on the people.

Northern Virginia has been considered by many to be a cash cow to the State of Virginia for years. It is clear there must be some sort of funding for the Dulles Metro expansion beyond the fare box. Development in Northern Virginia, and the Dulles Corridor in particular, has been a source of significant revenue for the State. Ironically, there is still constraint on the amount of development that can occur around the rail stations which will increase the economic return on this investment. If the appropriate amount of balanced development is allowed around the stations, this will provide another udder for the State to pull on.