Cobb Legislator Proposes Transit Funding Minus Tax Hike

by Jon Gillooly and Brandon Wilson
The Marietta Daily Journal
February 10, 2010

ACWORTH - State Rep. Ed Setzler (R-Acworth) is proposing a long-term funding mechanism he said would eventually generate about $1.5 billion a year for transportation purposes without raising taxes. Setzler filed the legislation on Tuesday as House Resolution 1358.

His plan, which calls for a constitutional amendment in November, would take roughly 25 percent of the state's general sales tax and commit it to transportation purposes once state revenues recover to pre-recession levels, which economists predict will be around 2015, Setzler said. Currently, no general state sales tax revenues are used for transportation, he said - only motor fuel taxes are, in addition to voter-approved SPLOST programs.

Setzler's plan would only set aside money for transportation in years where state revenues exceed population growth plus an additional 3 percent, which amounts to exceeding the state's general fund by about 5 percent from the previous year, he said. State revenues would have to come in roughly 5 percent above the previous year before any money is dumped into transportation funding. Moreover, transportation revenues would not be collected until Georgia's economy returns to the pre-recession level of fiscal year 2008, he said.

Setzler said the state's 4 percent general sales tax brought in about $6 billion in 2008, compared to about $5 billion in the recent fiscal year. If all criteria are met during the good economic years, when sales tax is coming back in around $6 billion, the state could take 25 percent of that, or $1.5 billion, and set it aside for transportation, Setzler said.

The idea is to find a long-term approach to transportation funding, Setzler said. If it takes until 2020 or later before money starts funneling into transportation from general state sales tax, at least the state has recognized a significant increase in transportation funding, he said. The bi-partisan legislation is intended to complement Gov. Sonny Perdue's transportation proposal, which addresses the next 10 years. Perdue's plan would set up regions that levy 1-cent sales taxes for transportation, to be voted on in 2012 after a list of projects were designed by each region. A second part of the governor's plan earmarks a $300 million bond package for transportation projects.

Georgia significantly under funds transportation, spending half the amount that growing, dynamic states such as Texas, Florida and Virginia do. The problem can't be solved in one quick fix, but will take a long-term approach, he said.

Setzler's proposal would take Georgia from being nearly last in the country when it comes to funding transportation to the level Texas, Florida and Virginia spend now, he said. Co-sponsors of Setzler's legislation include state Rep. Mark Hamilton (R-Cumming) and Pat Gardner (D-Atlanta).

jgillooly@mdjonline.com, bwilson@mdjonline.com


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