Moody’s awards metro Atlanta a ‘credit negative’ for TSPLOST failure
The note that arrived from Moody’s is pretty self-explanatory. The defeat of the transportation sales tax vote in metro Atlanta and eight other regions of the state won’t result in an immediate downgrading of credit – but could result in one when the state or local governments go bond-shopping in the future.
Moody’s was especially tough on metro Atlanta. Here’s the notice the rating firm sent:
In our Credit Outlook released today, Moody’s announced that voter rejection of a 1% Special Purpose Local Option Sales Tax (T-SPLOST) in nine of 12 regions of the State of Georgia is a credit negative for those areas…, especially for Atlanta because of the city’s position as an economic hub, which could be hurt by the area’s current condition of infrastructure.
The Atlanta region needs major upgrades to its dated and limited transit system and congested roadways to maintain its long-term position as an influential economic center. The region will now be challenged to fund such projects on a local or state level, as the region had not formulated a specific contingency plan for identified projects if voters rejected the tax.
Conversely, voter approval and adoption of T-SPLOST is a credit positive for the three regions that approved it. These regions will benefit during and after the new sales tax’s 10-year collection period as the proceeds will fund a combined 121 transportation-related projects. These regions are the Central Savannah River, the River Valley District, and The Heart of Georgia District.
Moody’s declaration of “credit positive” or “credit negative” does not connote a ratings change. We are simply stating what the credit impact could be on issuers as a result of this new legislation.
- By Jim Galloway, Political Insider
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79 comments Add your comment
Traveling Man
August 6th, 2012
11:27 pm
As the AJC continues their series I will examine their coverage from my own perspective and today I want to focus on the paragraph below because it illustrates beautifully how the absurd inefficiency of public transportation and the resulting cost to taxpayers is overlooked by proponents as well as those responsible for covering transportation issues.
One thing Atlanta wants to do, if the project makes the final list, is pump $861 million into MARTA to bring the “system into a state of good repair.” Tom Weyandt, Atlanta’s senior policy adviser for transportation, said MARTA currently has a $1.6 billion backlog on repair projects.
The current MARTA sales tax costs Dekalb and Fulton County taxpayers more than 300 Million Dollars a year but the system still has 1.6 Billion Dollars worth of maintenance projects that they can’t afford to pay for? In these days of trillion dollar federal deficits people have become completely desensitized to astronomical numbers but let us take a moment to put 1.6 Billion Dollars in perspective. This is what 1.6 Billion Dollars looks like: $1,600,000,000.00.
According to the 2010 census there are now 420,000 people living in the city of Atlanta so that 1.6 Billion Dollars would be $3,809,524 for every person that lives in Atlanta. So after decades of collecting tens of billions of dollars in sales taxes, MARTA needs almost 4 Million Dollars from each man, woman and child in the city of Atlanta just to stay running! Since the average person in Atlanta makes about $50,000 a year, each resident would have to work 76 years just to pay for the repairs that MARTA already needs but it wouldn’t even begin to expand capacity, improve service or reduce congestion in any way.
as per:
http://gajim.wordpress.com/2011/05/23/the-public-transportation-money-pit-in-perspective/
BrakePad
August 6th, 2012
9:45 pm
RE: Traveling Man: “The GDOT has lost approximately 54% of its budget since the 96 fiscal year, YET have only cut 19.6% of their work force…”
I don’t know how Traveling Man travels with one foot in his mouth. Even if the figures are true, it’s a grim day for GDOT and for the state.
To compare 94-96 numbers (the date GDOT fired Traveling Man)with today’s is so far out. Give me and the 4400 GDOT employeea break
The problem with that statement is that EVERY tax payer has given and given, while many, not all DOT Employees are just drawing a paycheck and doing very little work. If you were in the private sector you would have been out on the streets many many months ago. That is how responsible business owners operate, that is how smart household budgets are run. Something the GDOT forgets is that job is not the employees, it is the tax payers of Georgia.
bcatl
August 6th, 2012
10:18 pm
@Traveling Man
You must not travel very often unlike what you state. Charlotte’s light rail=current ridership they werent expecting to reach until 2025. Other cities with successful light rail projects (and extensive ones at that) include Portland, San Diego, Salt Lake City, Denver, Minneapolis, and Pittsburgh. Pittsburgh is the only one that could be considered northeast. Your statement is wrong as light rail is not very popular in the northeast aside from Newark and a few lines in Boston. They depend on heavy rail
What you totally left out was the tax hike they all took on initial investment, and the yearly tax they ALL pay and only 12.7% actually use for the entire region. I agree, it can work if done like a private business enterprise, but it must be self substaining after 7 years which is they bond point of self repairs and upgrades. Anytime tax dollars are collected to run a transit system, a professional sports complex(stadium, ball park) is a tax and should be maintained by USER fees not a Tax grab.
Ray
August 6th, 2012
11:47 pm
If Georgia T-SPLOST had started with a needs list instead of a wish list, it would have gotten a ton of support. Atlanta’s mayor decided he wanted all their allocation, money, to go to funding streetcars for the Beltline. Anyone who really thinks that would have solved current traffic problems in Atlanta is kidding themselves. The Beltline is clearly a development project.
An honest start might have bought Georgia success. Georgia politicians should never underestimate the peoples’ intelligence, again. The internet has come along way, Baby.
Mike Geigerman
August 7th, 2012
12:03 am
The rating agencies like Moody’s have a great deal of culpability in America’s financial mess. For them to take the overly Pius position of judging our transit inadequate is for them to completely misjudge our constituents inability to put their personal security on the line and use Marta. We have a problem and we will fix it. Outsider’s be gone.
eli
August 7th, 2012
12:22 am
Four words from the rich liberal Jewish that postal here regularly: I told you so.
Right wingers poorly understand economics.
‘Nuff said.
Michael
August 7th, 2012
1:07 am
The beltline will save Atlanta and anything inside 285.
Mama Says
August 7th, 2012
3:02 am
80% of the PHYSICAL INFRASTRUTURE BUILT would indeed have been roads, the % of money dedicated to roads may have been less because roads are cheaper than mass transit. But there is no doubt the majority of the physical projects completed under SPLOST was going to be roadways.
You can say all you want that 48% was for roads but in the end we would have a loop of light rail around the city at 660 million alone and millions of more tons of pavement outside the city dedicated to road work and That is a fact !
Jo
August 7th, 2012
4:43 am
I am getting out of Atlanta soon and taking my two successful companies and jobs with me. It is sad how people give their opinions on t-splost in a negative way based on ignorance and politics. I will go to a place to support my growing needs and where there is a little less ignorance…congrats to the haters, less jobs for you now!
» Moody’s awards metro Atlanta a ‘credit negative’ for TSPLOST failure Marvin Arrington Jr.
August 7th, 2012
5:25 am
[...] Article source: http://blogs.ajc.com/political-insider-jim-galloway/2012/08/06/moody%E2%80%99s-awards-metro-atlanta-... [...]
private sector worker
August 7th, 2012
6:02 am
Moody’s is an arm of the dummycrat party, plain and simple. Moodys is NEVER for a conservative, market based solution.
Jo- We know you are lying about your 2 companies that you are gonna take elsewhere. Generally succesful businesses are tied to the area they are located. Pleae move to NY or CA or how bout Chicago with your businesses (actually that is code for I will move elsewhere and draw my unemployment or SSD check or other money I did nto work for). Please Jo, get the heck out. We need Makers (conservatives who work) not Takers (liberals who draw checks with NO work).
private sector worker
August 7th, 2012
6:08 am
Why can’t the people who use public transportaion actually pay for public transportation? Gov’t all all levles is corrupt. Take money from the working suburbs and give money to our non working cities. Can we get a comment from that Democarat Party leader Mark Zander at Moodys? That puke is always on TV telling us how great the next bankrupt liberal govt plan is fI you support dummycarts, just wallow in your own waste. Only you can help yourself, not look to other to support your needs.
Marta is Unsafe
August 7th, 2012
6:51 am
Ride Marta and get ROBBED! I did and am not alone. Why put more money in an unsafe system?
Andy
August 7th, 2012
6:52 am
Atlanta started becoming a has been in the early 2000’s as Fortune 500 after Fortune 500 started exiting the city. About the only place in the metro area that’s doing well from a cooperate standpoint is the GA 400 corridor between Alpharetta and Dawsonville and if you haven’t noticed that’s outside of the perimeter.
Look no further than I-85 in SC and NC to find the future of the south.
Edmund Ruffin
August 7th, 2012
6:58 am
And I care about Atlanta’s credit score because……………………….? Besides, government shouldn’t be borrowing money anyway.
robert
August 7th, 2012
7:24 am
It really wasn’t much money to work with to begin for all the regions needs. In other Large markets, each and every infrastructure upgrade (rail, bridge, other) costs multi billions of $$. Tsplost money just wouln’t go very far.
Wilbur
August 7th, 2012
7:27 am
Would it have been “credit positive” if the voters agreed to waste seven billion or so dollars on projects that wouldn’t fix our traffic woes?
unbiased committee
August 7th, 2012
7:33 am
Thanks for voting No and upsetting the crooks at Moody’s.
Living Among Idiots
August 7th, 2012
7:41 am
For the first time since I moved to Atlanta 18 years ago, I can say that I am embarrassed to be a resident of Georgia and particularly Atlanta. The failure of residents to vote for TSPLOST is irresponsible and indicative of how ignorant the general public is regarding the need for planning for the long term future of this city. Many of these ‘NO’ voters also likely visit our city parks (e.g., Piedmont Park) and other public venues and enjoy what is offered and then leave their trash behind only to complain that the next time they visit the venue there is trash on the ground.
LilstevieM
August 7th, 2012
7:50 am
Infrastructure and especially transportation infrastructure has long been identified as one of the primary functions of govt. I think we can all agree that over the years govt has grown beyond the original uses of police power and infrastructure.
However, Moodys is correct. Our transportation system is way behind where it should be for our population and more importantly our expected population. They see that we have dire needs to be addressed. How will we pay for it. We just shot down a key way to find multiple improvements.
I see snide (and I will admit legitimate) remarks about maintenance issues for Marta, the Cobb airport etc…but if you look at the proposed expenditures..the vast amount of the money from the Tsplost was for improvements major roads, interchanges and adding new transit services. Many of these things take years to plan and build out. We are behind the 8 ball now on many of these needed improvements.
Tsplost is dead…but we need to find away to address these still very real needs. So smartarsed comments to the newspaper is kind of a waste of bandwidth unless you want to propose how we need to address the needs for this region.
CW
August 7th, 2012
8:15 am
It’s over people. You may add Birmingham, Tampa (unless the rising seas flood it) and maybe Chattanooga to the cities that will bypass Atlanta. The “center” of Atlanta has continued to move north, it is now Buckhead. Companies will continue to locate in areas north of Atlanta and eventually a new airport will be built equi-distant to Atlanta, Chatlotte and Chattanooga. In 1-2 generations, Atlanta and neighboring counties will look like Detroit. It is time to head for the hills.
Andy
August 7th, 2012
8:20 am
I moved my manufacturing business from Woodstock to Blairsville May 2008 and it’s the smartest decision I ever made. Friendly people, little to no crime, no traffic, beautiful views, four seasons, generally 10 degrees cooler in the summer with lower humidity, no smog and the list just goes on. The only time I watch ATL news is if there’s a significant weather event.
Michael Marr
August 7th, 2012
8:32 am
Your government has been disappointing for the last 10 years and will continue to disappoint ten years hence.
PLAN B???
August 7th, 2012
8:49 am
Still waiting on Plan B from all the idiot ‘no’ voters and their moron leaders like Steve Brown and Debbie Dooley. WHERE IS PLAN B!!???!?!?
Andy
August 7th, 2012
9:10 am
Plan be ‘B’ is follow the jobs to the Carolinas.
The only thing certain in life is change and ATL has permanently changed for the worse.
T-SPLOST failures prompt “credit negative” warning from Moody’s | Savannah Unplugged
August 7th, 2012
10:36 am
[...] to Jim Galloway at the AJC for Moody’s awards metro Atlanta a ‘credit negative’ for TSPLOST failure: The note that arrived from Moody’s is pretty self-explanatory. The defeat of the transportation [...]
Dan
August 7th, 2012
11:14 am
Giving the pols $15B as a reward for mismangaing the transportation dollars for years would have been madness. Not to mention most of the projects were simple maintenance. It comes down to trust, sure they had a pretty power point detailing how they would spend the $15B, what they needed was another pretty PPT detailing how the first 8% of tax is currently being spent, I am more than confident that there is 12% of that current spend (the equivelent of the penny tax) that is pure fat
Heika
August 7th, 2012
2:56 pm
The free market at work!
2012 Atlanta Region Transportation Referendum - Page 155 - City-Data Forum
August 7th, 2012
3:28 pm
[...] [...]
Jackie
August 7th, 2012
7:05 pm
To those that talk crap about Marta: (1) its funny that you mofos haven’t figured out your the ones behind the 8 ball. Fulton & Dekalb did a fantastic thing by funding Marta. (2) While your sitting in traffic pissed off, were still moving. (3) Anyone notice the cost of gas is rising again? (4) I’ve been riding MARTA since before the rail; when there was only buses and have NEVER been a victim of or witnessed a crime on MARTA property! (4) Theres crime everywhere…oops my bad…you all live in that ‘things like that never happen around here’ neighborhood. (5) Gwinnett was sooooo worried about Blacks coming to and having access to the area that while you all were looking out your front door watching us the Latinos were creeping in your back door! LOL (6) To Dekalb and Fulton, we need to add another penny (pay 2¢) and continue to fund and expand MARTA into our areas as we’ve been doing. Let them continue to sit in and whine about traffic and gas prices – it will only get worse.
My Dime
August 7th, 2012
8:18 pm
Jackie
August 7th, 2012
7:05 pm
To those that talk crap about Marta: (1) its funny that you mofos haven’t figured out your the ones behind the 8 ball. Fulton & Dekalb did a fantastic thing by funding Marta. (2) While your sitting in traffic pissed off, were still moving. (3) Anyone notice the cost of gas is rising again? (4) I’ve been riding MARTA since before the rail; when there was only buses and have NEVER been a victim of or witnessed a crime on MARTA property! (4) Theres crime everywhere…oops my bad…you all live in that ‘things like that never happen around here’ neighborhood. (5) Gwinnett was sooooo worried about Blacks coming to and having access to the area that while you all were looking out your front door watching us the Latinos were creeping in your back door! LOL (6) To Dekalb and Fulton, we need to add another penny (pay 2¢) and continue to fund and expand MARTA into our areas as we’ve been doing. Let them continue to sit in and whine about traffic and gas prices – it will only get worse.
It is nice Marta provides the mentally(incompetent) ill, vision impaired the opportunity to ride on tax payer funded bus and train service
Not to see any crimes must mean either you are blind or you are doing the robbing.