Gov. Hogan held the line against a proposed regional sales tax for the transit system.
D.C., MD, and VA Disagree About Metro Tax
In October, a regional funding summit was held to discuss a new tax that would provide long-term funding for Metro. However, the three regional leaders—Washington, D.C. Mayor Muriel Bowser, Maryland Gov. Larry Hogan, and Virginia Gov. Terry McAuliffe—are divided about whether this tax is a good idea.
Since Metro is the only major transit system in the U.S. that doesn’t receive significant income from a tax or dedicated funding source, this is isn’t a new issue, reported The Washington Post. Each year, the areas that Metro services must come up with the funding, and this method has led to problems with safety and reliability.
The 1-cent regional sales tax was one of three potential funding solutions proposed in a briefing by District Chief Financial Officer Jeffrey S. DeWitt. The other two were annual passenger revenue increases (13.5 percent, provided by spiked ridership or hiked fares) and annual subsidy increases (8.2. percent from D.C., Maryland, and Virginia).
Hogan said that Maryland was already providing $500 million in yearly funding to Metro and didn’t plan to spend more until things improved. He also said that Metro should pursue fare increases, cost reductions, or federal government funding. After the summit, Hogan’s spokesman reiterated with a reporter that he has no plans to support a tax increase.
McAuliffe did not take a stand on the tax one way or the other, but said that he would need goals set before he could take the matter to the Legislature. He said he would be Metro’s “biggest cheerleader” if reliability and safety are dealt with and acknowledged that it was necessary to find a long-term funding formula that works.
