Del. Frederick:
As your constituent, I strongly oppose borrowing funds to expedite the growth of our transportation funding. The reason I oppose this option, is that I believe taxpayers will end up paying double the cost and in some cases, it may even triple the costs over the long run.
Firstly, in my view, if we were to borrow funds to jump start transportation improvements as you are proposing, Virginians will have to pay the interest that is incurred on those loans even though the state may be entitled to a low interest rate due to the state's current credit status and bond ratings.
Secondly, after the interest is paid then the principal must be paid, which happens to represent the original amount (in whole dollars), of the state's loan application request. Which could potentially could cause the state legislature consider increasing the current tax rate, either by decreasing the current discounts credits on the car tax or raising revenue in some other form to help offset budgetary expenditures and costs.
Thirdly, Virginians could potentially face increase fees for licenses, tags, registrations, car inspections, and for other services citizens critically depend on.
Lastly, wouldn't Virginians be better off to withhold borrowing funds unnecessarily, until we absolutely have too? In case you were unaware, our country is heading towards a critical financial crisis and states will have to work harder and smarter in providing needed services to its citizens.
Is this the best proposal you can deliver to your constituents? If this is your best offer, then I sincerely must ask, why didn't you take the advantage during he special general session that was held in September, to make a commitment to fund a transportation bill by making a concerted effort to partner with Gov. Kaine when you had the opportunity to do so?
In my honest opinion, as a public servant and as someone whom you represent, this is the worst representation I have ever seen and there will be a price to pay come the November '07 elections.
Regards,
Rachel Tellis
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The president is up there in the White House for you...not you here for him. The secretaries act in their bureaus for you...not you here for them. The Congress convenes ever December for you, laws, courts, the forming of states, the charter of cities, the going and coming of commerce and mails are all for you. Walt Whitman
Below you will find the unedited version of Del. Frederick's response to my message posted above:
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Subject: RE: NoVa House Members call on Governor to dedicate 100% of new spending to t...
Date: 12/13/2006 9:36:53 PM Eastern Standard Time
From: delegate@va52.com
Reply To:
To: Rptellis1@aol.com
I'm sorry you feel that way, and again (as I wrote you last time), I'm not even sure why I respond to you anymore given that you'll never support me anyway. You obviously have a problem grasping the facts, but let me help:
- Before Kaine was sworn in as Governor, I met with him privately twice, at my request. My objective was to reach out to him and pledge to work with him on areas we agree, specifically, on land-use reforms. We did end of working together, and the legislation he holds up as his most significant accomplishment on growth this year is my HB 1513, yet, on the larger growth items, he abandoned his efforts to gain the support of builders for his tax increase proposals. Still, I reached out to him, to subsequently read in the Washington Post that he wants me defeated. Heck, this is like my exchanges with you...
- On bonding, you have it exactly the opposite of what is actually the case. Bonding is a sound way to build large capital projects, especially since we have a AAA bond rating in Virginia, and are only utilizing one-third of our debt capacity. This is no different from taking out a mortgage to buy your house. For roads, it is actually cheaper for the taxpayer if we were to bond the roads and build them now, versus wait. We can borrow at 4% per year, yet, road construction costs are going up at 12-15% per year. Do the math: 4% per year is less than 12-15% per year. The taxpayers would save a fortune, assuming we're going to build roads.
Notwithstanding your opinion of me, best wishes for a Merry Christmas.
-JMF.