In part due to opposition from Fairfax County leaders, the regional DMV Moves task force appears to have abandoned a proposal for a regional sales tax to provide additional Metro funding.
A collaborative effort between the Washington Metropolitan Area Transit Authority (WMATA) and the Metropolitan Washington Council of Governments (COG), the DMV Moves task force has been working for a year on developing funding alternatives.
At a May 16 meeting, regional leaders reached a general consensus that Maryland, Virginia and D.C. should figure out their own approaches for covering the $500 million to $600 million more that officials estimate the transit system will need annually in the future.
Critics of the sales-tax approach said it would take away local and state authority and could prove unworkable, while supporters argued it’s the only way to guarantee localities would honor funding promises long-term.
The two alternatives presented for consideration at the DMV Moves meeting:
- Option A: Have the three jurisdictions independently determine how they will raise the necessary additional funds. For Northern Virginia, that’s expected to total $150 million to $180 million for the first year and rising after that.
- Option B: Increase sales tax rates throughout the region high enough to raise the funds. D.C.’s share would be an estimated $190 million to $225 million the first year, while Maryland’s is $170 million to $200 million.
“I would without a doubt prefer Option A,” Fairfax County Board of Supervisors Chairman Jeff McKay said. “There are a lot of challenges in Option B. The challenge for many of us might be the loss of local autonomy, input, structure.”
While McKay pushed for autonomy, the top elected leader in a community west of Fairfax was on the other side of the debate. Loudoun County Board Chair Phyllis Randall contended that without a permanent, dedicated funding stream in place, there’s no guarantee localities will fund their full share down the road.
“You can never call anything ‘permanent’ and ‘dedicated’ if it relies on elections and people who are in the political office at the moment,” Randall said.
“A different board that turns over may do something different, and they will be willing to go to court about it,” Randall said. “That’s life.”
Nick Donohue, a former Virginia state transportation official who is serving as facilitator for the DMV Moves initiative, suggested both options could work.
Franconia District Supervisor Rodney Lusk, who serves on the panel as COG’s chair, said a one-size-fits-all funding effort is unrealistic, given the political and economic dynamics of the Washington region.
“We have to acknowledge the jurisdictions are different, and we’ve got to respect that,” he said.
Arlington County Board member Matt de Ferranti also said he’s “fully” on board with Option A.
Northern Virginians currently pay a 6% sales tax, with 4.3% going to the state government, 1% to the locality and 0.7% for regional transportation projects. Some items, such as grocery purchases, are taxed at a lower rate.
At the DMV Moves meeting, Maryland officials also voiced support for local autonomy on determining how to pay extra costs.
Maryland Delegate Marc Korman (D-16) noted that his state has no local sales tax, and state leaders are “extremely unlikely” to impose one, for transit or anything else. Maryland collects a 6% sales tax on on most purchases, but all revenue is channeled to the state government.
D.C. City Councilmember Phil Mendelson expressed some reservations about both options, but sided with a regional sales tax.
Though no official tally was taken, DMV Moves leaders said they took the discussion as direction to move forward with developing a plan where jurisdictions would have final say in how they raised the money.
The body is seeking agreement among participating localities to come up with up to $600 million a year in additional financial investment in Metro’s rail and bus networks. The funding level would rise each year at a rate yet to be determined, though a figure of “at least 3%” was included in planning documents.
Charles Allen, a member of the D.C. City Council and co-chair of the group, said he’s fine with a do-it-yourself approach to funding, but it must come with “a regional commitment that creates an iron-clad structure.”
Without assurances localities will fulfill their funding promises, he questioned, “What’s the point?”
In coming months, work groups will flesh out details of the funding mechanism before a final recommendation comes in the fall. Ultimately, the D.C. City Council and state legislatures for Virginia and Maryland will have to sign off on any new financial compact.
The clock is ticking, WMATA general manager Randy Clarke said, warning that plans need to be in place by next fall in order for new funding to kick in by late 2027.
“We really have a year to solve the problem,” he said. “If it isn’t solved, then we’re going to have impacts to our capital program.”
Public comment was not taken at the May 16 meeting, but is being accepted via email to comment@dmvmoves.org for consideration at future meetings.
