Republicans return to a GOP-only plan for a transportation sales tax
Gov. Sonny Perdue and Republican leaders of the House and Senate over the weekend cut a deal for a transportation bill that will probably come out of a conference committee on Tuesday, according to my AJC colleague Ariel Hart.
Democrats won’t be offered a voice in the process, and Republicans will return to the concept that puts off a referendum until 2012. GOP candidates for governor had objected to Republican talk, which surfaced last week, of acceding to Democratic requirements for a proposed constitutional amendment – and a November referendum this year.
The newest version of a transportation deal would be done by statute, a return to the basic concept that the governor introduced, doing it with a statute that only requires a simple majority and Perdue’s signature. A court challenge is likely.
One reason for the GOP-only solution: Republicans are ticked at Democrats for a move they made during debate over adding the $216 million bed hospital tax to HB 1055: They’ve challenged the legality of the combination in a letter to Attorney General Thurbert Baker.
The sticking point within GOP ranks has been Perdue’s insistence on the creation of specific regional tax districts for sales taxes – which included no provision for withdrawing from those districts.
The measure that will escape the conference committee will stick to the governor’s demand – but we’re hearing that local governments, as a sop, would be able to keep 25 percent of tax revenue generated.
The matter of a 50-50 provision for MARTA is up in the air. With no Democrats required or desired, Hart says, it’s not sure whether the state’s largest transit agency will be included.
In the meantime, Hart writes that MARTA has begun its own effort:
MARTA and its local union are kicking off a publicity campaign Tuesday, holding rallies and putting red X’s on a third of their buses and trains, to denote the ones that won’t be running after budget cuts go into effect later this year. In addition, starting probably Wednesday, the national branch of the union is planning a radio ad campaign.
It’s all to publicize MARTA’s plight as it draws up cuts for up to 30 percent of its service, to fill a $120 million gap for operations. MARTA hopes to drive home the effect the cuts will have on Atlanta commuters, both the ones in the buses and the ones on streets who may have to deal with extra traffic if the riders switch to driving.
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63 comments Add your comment
Johnny
April 19th, 2010
9:16 pm
Can we also expect the Republicans’ version of health care reform, honoring states’ rights, and its promise to set up high risk pools?
green green
April 19th, 2010
9:26 pm
hmmm, cutting democrats out completely, eh?
because it worked so well on Crossover Day?
DAWG1
April 19th, 2010
9:52 pm
The Atlanta business community is going to P*SSED if the transportation vote is put off until 2012 and no consideration is given to MARTA. Not very smart of Republicans to put their own petty issues ahead of the business community’s wishes.
green green
April 19th, 2010
10:00 pm
Sam Williams is going to kill somebody with his bare hands if they don’t do transit/transport this year.
Reality
April 19th, 2010
10:01 pm
Let me REALLY understand here….. And, everyone please follow:
Republicans want to RAISE TAXES in GA!
Please everyone, stop thinking that the republican party platform is for lower taxes. It just simply ISN’T true just cause they ’say so.’ The reality is that they RAISE TAXES on the general public, but do want to LOWER taxes on the wealthy only. That is their true platform although they will never ever admit to it.
sammy
April 19th, 2010
10:13 pm
Gee, if MARTA would just dump the union there would be no need for cuts.
Michael
April 19th, 2010
10:22 pm
If the transportation funds are going to come from the state or local governments, how else do you raise money to pay for them? Whether these are GOP or the Dems, the solution will be the same. The difference is the GOP will not waste tax dollars on supporting things like the arts that noone would buy in the first place. The Dems have pretty much been running Atlanta for the longest time. My question is, has it gotten any better? It has been in decline ever since they have been running the city.
Jon
April 19th, 2010
10:23 pm
Is this the part where the GA Dems start screaming “Repeal and Replace” every chance they get?
jr
April 19th, 2010
10:34 pm
“Democrats won’t be offered a voice in the process, and Republicans will return to the concept that puts off a referendum until 2012.”
A referendum requires a 2/3rd majority vote. So, the Democrats can stop it’s passage if they don’t feel like they have a voice.
tom
April 19th, 2010
10:38 pm
Why not just increase the gasoline tax up to the level of surrounding states? Oh no, I guess this would make too much sense.
traffic idiot
April 19th, 2010
10:44 pm
No matter what happens with MARTA….a regional tax or funding vote will need to be in place to move forward with any future building or maintenance of roads and travel ways.
One of the most alarming issues is that MARTA is not self sufficient and like AMTRAK is a burden on the the tax payers…You may not like that statement but it is true….
Take a vote on regional taxes and if the residents of Georgia want to add a sales tax to their spending then go vote for it….but put it to a vote and move on..
The bigger pressing matter is why do we have so many employees on the payrolls with about 35% of its operation budget cut in the past 2 years…it seems like if government were to run like a business and 35% of their funding was eliminated so would jobs.
Roads are a drain
April 19th, 2010
11:04 pm
Hello!!
“One of the most alarming issues is that MARTA is not self sufficient and like AMTRAK is a burden on the the tax payers.”
UMMMMM, no form of transportation is self-sufficent. Airports and airlines get subsidies and tax breaks. Roads cost a lot of money to build and maintain and other than Georgia 400, don’t bring the state income. These roads out to the edge of Atlanta are a burden on the taxpayers. Atlanta has grown like a weed–and it is unsustainable.
Reality
April 19th, 2010
11:07 pm
@Michael – Gee, dummy, if the state repubs had used the federal transportation money we were given a few years back, we WOULD have the transportation funds today!
This isn’t an Atlanta issue. It is a State issue.
The State is run by republicans and they have run this State into the ground. We have one of the highest unemployment in the Country. We have one of the worst transportation systems in the Country (see above). We are continuing to slash and burn education and yet expect GA to increase test scores. Now, we want to raise taxes.
The ‘we’ in the above paragraph is the REPUBLICANS in State government. So, do you REALLY think that they use money wisely? Really? No, come on now, REALLY?
Reality
April 19th, 2010
11:09 pm
Public transportation in any form, is for the good of all people. It is cheaper overall. It creates less pollution. It reduces traffic jams. Because it is good for everyone, THAT is why it needs to be subsidized.
However, as I mentioned in my last post, had the State republicans not BLOWN the federal tax money given for transportation, we won’t have this ‘crisis.’
Chippy McLegislator
April 19th, 2010
11:17 pm
Say hello to Georgia’s next governor, Roy Barnes. Republicans have had their chance to do something about transportation. As matter of fact, they’ve had chance after chance after chance and each time they do nothing. They haven’t even done anything to get the ball rolling.
The business community sees cities like Dallas, Denver, Austin and Charlotte pulling away talented employees and businesses that would have been in Atlanta. All we can attract these day area failing companies like Spectrum Brands and NCR who are only here for free taxpayer dollars.
Expect to see the business community fall in behind Barnes. They might not like having a Democrat in the governor’s mansion when it comes to taxes but it is easy to see that the Republicans are never ever going to take on the transporation issues in a way that benefits the business community… unless of course you’re a road builder.
mike
April 19th, 2010
11:23 pm
Maybe we can go back to the days of moonshine and and running cars out of the mountains of north Georgia. Then sonny and his boys could really feel at home. They would not have to be concerned about any of the things that concern the citizens of this state such as education, transportation etc.
Cal
April 19th, 2010
11:52 pm
I can’t believe they are making this mistake. The democrats are going to be able to toss them every which a way if they pass a bill without their support. This is a sham bill that doesn’t fix anything until at least 2013. After three years going down this path, they should have a transportation funding bill everyone can support that would actually solve problems for the state and not cause them.
Avery
April 19th, 2010
11:59 pm
The state-level GOP who keep complaining we need to cut taxes and shrink the government……..and then cite the Constitution……..are insane.
The point was to disaggregate responsibility to the states. In other words, when you CUT things at the federal level you need to INCREASE them at the state level. Unfortunately, an understanding of the big picture has never worked out well for politicians.
Billofrights
April 20th, 2010
12:09 am
Atlanta is the next Detroit. What do they have in common? A large black population that expects everything handed to them for free with no effort. You all enjoy the decline. I am leaving my home town for beautiful Asheville N.C………
Joe-number2
April 20th, 2010
12:19 am
Marta is a JOKE! The last time I used the bus/train system they had a person posted by the ticket machines in all the stations too help riders understand the overly confusing machines. At the airport I watched person after person with a lost look on their face, not be able to understand how to buy a ticket. The employee said (Don’t worry Sir. No one can ever understand the silly system. That’s why I am here.) Would a bank have a atm that no one could operate without a union employee there to help? I watch the buses pass my house day and night with only the driver. Yes of course, there are more during rush hour but, they are never even close to full. If you average all trips you maybe have three riders onboard! Marta will spend $3100 to mark the buses with an X this week. Yes,—- that’s wise use of taxpayer money! The buses that run on natural gas are clean burning but, what most people don’t understand is that a natural gas bus only gets half the mileage and of course has to return to the fueling center twice as often. Also, this requires two union drivers and two buses to cover the same route. Well, how energy wise is that? Just one more government money pit.
Big D Dawg
April 20th, 2010
12:24 am
we’ve had the worst transportation planning in the entire country for the last 30, no make that 40 years. we let Atlanta try to plan transportation for the region and the surrounding counties would not participate. the state or a private/public combo should have taken it over 30 years ago. marta should be expanded alongside the interstate in the 20+ surrounding counties. just think a rail line along the interstate and a stop and parking at every mall surrounding atlanta leading to downtown and each sports complex around Atlanta. Each mall has an 8 story parking garage that charges $3per day for parking. the decks would pay for themselves because they would be full and just think of the traffic that would be taken off the interstates everyday. one big problem, this should have started in 1980. however, we have to bite the bullet and it must begin happening now. The state must take over marta and force participation not just in the 20 counties but now mostly state wide and include high speed rail from all the bedroom cities in GA. Dalton, Calhoun, Blue Ridge, Canton, Woodstock, Athens, Fayetteville, Newnan, Conyers, McDonough etc. Just draw a line 70 miles in every direction and move inward toward Atlanta and those are the priorties to make transportation happen. Then when that is accomplished include Columbus, Augusta, Savannah, Valdosta. Then we have a transportation plan that works for everyone in the state. Add 5 cents to every gallon of gas or a 1% statewide sales tax that goes only to this type transportation. And the money goes into a trust fund for transportation not the Gen Fund. That way it’s protected!! There’s more to this but this is a start.
SaneDem
April 20th, 2010
12:34 am
How the hell are the so-called “conservative” TEA Party folks saying nothing to the GA GOP hiking dozens of taxes? Just cause they call them “fees” makes it okay? Proof that the movement stands for little other than blindly supporting Republicans (even as they do the exact opposite of what the TEA Party says it supports).
Big D Dawg
April 20th, 2010
12:48 am
If you knew your history, half the republicans were democrats before switching parties. After they realized they couldn’t get elected as a democrat and of course too many in the state fell for it. Voting for the party and not the person. when will all of you get a clue and pay attention. vote for people with real ideas not a party label.
CA Observer
April 20th, 2010
2:35 am
I have visited Atlanta and the surrounding communities several times
and as bad as you think your transportation problems are,it does not
compete with California ,or other state .You have a nice state,and
contrary to a previous posted comment,the diversity of the state is
a positive.
rick
April 20th, 2010
2:55 am
If marta just cut out the routes with empty buses they would save more than 30%
Randy
April 20th, 2010
5:06 am
Democrats or Republicans , it really don’t matter they love money and power and will do anything to aquire it. So lets put the Democrats in power of the state and lets watch them do the same thing and blame the the results on the Republicans and vice-versa. I don’t know if the tea party is the answer but we need something else.
James
April 20th, 2010
7:05 am
@”Billofrights” – Good riddance bigot, don’t let the door hit you on the way out.
OceanofWisdom
April 20th, 2010
7:20 am
Hey ‘billofrights’…um Asheville NC is a smaller Atlanta, though it’s also known as ‘little Chicago’ which is probably why Obama is visiting this weekend. Asheville is the most government program dependent town on the face of the earf ! Lieberal city councilman Cecil Bothwell wants to make Asheville a ’sanctuary city’ for ILLEGALs. Asheville is theatre of the absurd in daily operation!
Still, great restaurants, hiking, and Biltmore.
pete
April 20th, 2010
7:34 am
Democrats the first and original party
Jason T
April 20th, 2010
7:36 am
Let the union buy it and run it. Let’s see how good a union can actually “run” anything.
pete
April 20th, 2010
7:38 am
look at voting records and see if it helps your pocket.
Bill Orvis White
April 20th, 2010
7:39 am
Atlanta’s a big town and traffic is going to happen anyway. The true answer for a little relief is to double decker the freeways. MARTA just needs to be shut down and the monies from that need to go to more roads. Public transportation is another component of Socialism whereby the masses are packed into cans like sardines.
pete
April 20th, 2010
7:47 am
marta is a private sector,no goverment funds
Common Sense
April 20th, 2010
8:10 am
So the state GOP has put off doing anything regarding transportation for another 2 years, unless you see those stop lights on the highway on ramps as something that has helped traffic at all. An entire decade will have passed with nothing done for transportation. It probably will be longer after all the rural tax districts sue the state because they don’t want to participate, we’ll probably go back to the drawing board to do something else.
Roads don’t draw profit and have to be subsidized. Why should I pay for a road being built in Paulding County that I will never drive on? Because rural folks only want my money, but don’t want to pay their fair share. Most folks in GA would still be driving on dirt roads if it wasn’t for Atlanta.
This was nothing more than a political move to keep democratic voter turnout low for November’s election, which is why they moved the referendum to 2012. It should be challenged. Why should one legislature dictate what another one does two years from now. The Republicans are RAISING taxes with the hospital bed tax, but not a peep from any conservatives yet.
Don Juan
April 20th, 2010
8:11 am
285 and 400 on Friday is another component of Socialism whereby the masses are packed into cans like sardines.
Fixed that for you Bill Orvis.
James
April 20th, 2010
8:59 am
@Bill Orvis – Thank you for not participating in any capacity as a transportation consultant. Also, please call your doctor and re-fill your prescription.
Knowledge
April 20th, 2010
9:10 am
Pete, MARTA is NOT private sector. It’s a government agency/authority, with a board of directors consisting of government appointed representatives. Unfortunately, there are too many people in GA against supporting it who are ignorant or misinformed to that fact and have the impression MARTA is a private corporation.
Monroe Burbank
April 20th, 2010
9:12 am
Billofrights,
You enjoy your new home in Asheville, NC. Don’t let the door hit you on the bum on the way out. Your loss is our gain. One less racist in GA. Only 3 million more to go. Don’t forget your white hood, either.
Don
April 20th, 2010
9:15 am
So no democratic participation. That’s good government? That’s attempting to actually solve a problem? Of course not.
Bill Orvis White
April 20th, 2010
9:26 am
@James Sometimes the truth hurts, but God did not intend for people to be moved in masses. There was once a guy named Adolph who moved innocents in masses — we know how all that turned out…..
Morrus
April 20th, 2010
9:48 am
Vote out the incumbents and start over
Intown
April 20th, 2010
9:50 am
The Republicans are killing Georgia’s economy. They just don’t get it.
David Doss
April 20th, 2010
9:59 am
I’ve said this a thousand times before and I will continue to preach this very simple message: You cannot deliver a statewide transportation system funded by a regional funding mechanism. You will wind up with a patchwork of conflicting and inefficient projects that do little to increase mobility or reduce congestion.
Current projections show that GDOT WILL NOT have enough state motor fuel revenue in FY 2012 to make the required 20% match to access OUR federal motor fuel dollars. Let me say that again … For the first time in our state’s history, Georgians will leave THEIR federal motor fuel tax dollars on the table in Washington because we do not have enough money for the 20% match requirement! Why you ask? State motor fuel revenue is DOWN $200 million since FY 2008, AND our debt service will hit $500 million in FY 2012 due primarily to the money borrowed to fund Perdue’s Fast Forward Program. And let me remind everyone, THE REGIONAL PLANS DO NOT ADD 1 PENNY OF NEW REVENUE TO GDOT. If a regional plan were to pass, GDOT is still broke. GDOT will not be able to borrow any more money because we can’t make the debt payments and we will not get all of our federal money because we don’t have the required state match.
Here is a short term, band aid solution to fix the problem for the next 3 years until the economy can improve and the voters can decide about a statewide 1% sales tax for transportation: Impose a Windfall Profit Tax of 10 cents per gallon on the oil distributors in this state who have one of the largest profit margins in the country. That would raise about $700 million per year in new revenue for GDOT. Spend $200 million for the federal match requirement; $200 million for maintenance as our infrastructure is crumbling before our eyes, $100 million for local resurfacing and intersection improvements, and $200 million for transit. Sunset the tax on big oil after 3 years and go to the voters with a balanced statewide multimodal plan based on a statewide 1% sales tax to be on the ballot in 2012.
Positions of leadership come with responsibility. It’s time for the leadership in this state to show the political courage to do the right thing. Stop this endless partisan bickering and cooperate for the good of the entire state.
Tom
April 20th, 2010
10:08 am
Sure, go ahead and double deck the expressways…. and while you’re at it, make certain that only electric cars use them – my lungs are getting pretty tired of your exhaust pollution! And while you’re at it, let’s put a big tax on parking spaces to pay for it all! I’m tired of paying for the city streets you use. Keep ‘em small for residents and emergency vehicles only….. gee … sounds like what London is doing…. but I digress….
Tom
April 20th, 2010
10:11 am
David, well said…. to bad our elected officials don’t have the stones to do something like that. No statesmen here….
Angus
April 20th, 2010
10:37 am
@ David Doss – your entire argument is based on one premise – that GDOT can “deliver a statewide transportation system”. Many of us Atlantans have doubts about that!
An easier solution (that should have been adopted years ago): have GA’s motor fuel tax come close to matching the national average. In ‘09, national average = 28.6 cpg, GA = 13.0 cpg (lowest in the US outside of Alaska).
For reference, Florida = 34.5 cpg, North Carolina = 30.2 cpg – two neighbors that are generally considered to be kicking our butts on the transportation front.
Old Cobb Native
April 20th, 2010
11:05 am
The “no form of transportation is self-sufficient” argument is bogus. Originally offered by the head of Amtrak when he couldn’t justify his failures, it argues for increasing tax burdens rather than better efficiencies in design and operation. And, in the area of highways, it is outright wrong. (Here’s why: Gov’t funds construction; cars use it, consuming gas; gas taxes return to Gov’t for repay construction bonds; commerce also begets corporate and personal income which is taxed as well. If gas tax funds are re-directed to other things, that’s a different issue!)
I advocate for mass transit that is designed to generate repayment of all construction revenues and account for its own cost of operation. In fact, if done right, it COULD generate net positive tax revenues for local and state governments AND help solve local and regional transit problems.
The NW Corridor should be done with the hybrid HighRoad / Silver Bullet Rapid Transit System!!!! (http://www.OTG-Inc.com)
Fact Checker
April 20th, 2010
12:25 pm
Old Cobb:
“Mass transit that is designed to generate repayment of all construction revenues and account for its own cost of operation” is a reality that simply doesn’t exist in the real world. There is only one transit system in the world that even comes close to “break even” and that is in China. The NYC transit system, which is the envy of most US cities, generates less than 50% of the OPERATING cost via the fare box, much less the construction costs. Transit is a piece of the solution for metro Atlanta’s traffic woes, but don’t fool yourself into thinking that it will ever come close to generating the revenue to pay for itself.
Old Cobb Native
April 20th, 2010
12:48 pm
@Fact Checker – You missed my point: Just because it hasn’t been done doesn’t mean it can’t be done. The environment has been one of easy subsidy money until now. There hasn’t been as big a need to build and operate in a fiscally responsible way because the big government sugar daddy will always cover the gap! System technologies have remained the same for the most part since the 1860s. Since THOSE technologies have proven to require subsidy, shall we then say “it can’t be done?” NO. New technologies and responsible operation CAN make it happen. Don’t fall for the old tricks of the transportation establishment that encumber innovations.
Base
April 20th, 2010
1:16 pm
Choo choo David Davis is an idiot and crook.