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Del Charniele Herring, a member of the Virginia House of Delegates, said the controversy had destroyed all of Northam's goodwill towards Commonwealth legislators.
"He can not govern effectively now, it's time to retire, and I know it's hard, but it's time," she said on CNN's "Erin Burnett OutFront" on Monday.
Herring added that the governor will no longer be able to work with lawmakers after the controversy.
"What credibility does he have when negotiating trade agreements for the Commonwealth when dealing with lawmakers?" Herring asked. "Honestly, for me it will always be in the back of my mind."
Northam faces increasing pressure from national and national leaders to resign since a photo on his Virginia Virginia 1984 directory page was unveiled on Friday. The picture showed a man with a black face and another person dressed as a member of the Ku Klux Klan. Northam first took responsibility for the photo and apologized Friday night.
"He told me personally on Friday that he recognized that it was him on the photo," Herring said.
However, Northam has backtracked, claiming at a press conference Saturday that he was not one of the people photographed.
Northam admitted to having worn Blackface for a dance competition organized by Michael Jackson about the same time the photo was taken.
Herring described as "deep" the fact that Northam took Blackface a year before Virginia elected Douglas Wilder as lieutenant governor. Wilder will later become the first African-American governor in US history.
"His actions have been painful and painful for many Virginians," Herring said.
She said that Northam's insistence on staying in power had created a distraction for the state when he had to focus on something else. The state legislature is working on proposals to adopt a two-year budget and review tax policy.
"I understand that he needs time to clarify his name, but the Virginians do not have the time," she said. "We need to refocus on the task at hand, and withdrawing soon, very soon, would help the Commonwealth."
He added that he thought the only way to clarify his name would be to stay in office and prove that it was not him in the photo.
Herring, however, said senior Virginia government officials thought Northam was going to resign. She added that she was not yet ready to discuss what steps could be taken if she chose to stay in office.
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