Perdue Backs Flexible Funding For MARTA

VERY GOOD NEWS FOR MARTA: The Governor backs flexible use of funding for its operating expenses!

By Dave Willliams
Atlanta Business Chronicle
February 12, 2010

Gov. Sonny Perdue threw his support Thursday behind a proposal to give cash-strapped MARTA more flexibility with its sales tax revenue.

A provision doing away with a current requirement that the transit agency set aside at least 50 percent of the tax money for capital expenses will be part of a transportation funding bill to be introduced into the legislature next week, the governor announced.

Instead, MARTA would be able to put all of its sales tax revenue toward operating costs, where it’s most needed.

The same proposal was introduced in the Senate last year but, without backing from Perdue and Republican legislative leaders, it didn’t make it to the governor’s desk.

MARTA made limited service cuts this year to plug an operating shortfall an faces more substantial reductions in fiscal 2011.

Full flexibility with the sales tax money would allow the agency to move up to $39 million from its capital account into operations, said Beverly Scott, the system’s general manager. But that would still leave MARTA $60 million to $70 million short on the operating side.

“It helps, but it does not in any way solve the problem,” she said.

Perdue said the provision eliminating the 50-50 restriction on MARTA’s funds would sunset after three years.

“We want MARTA to prove they’re good stewards with that flexibility,” he said.

The governor’s announcement on MARTA came during a news conference revealing additional details of the transportation funding plan he first unveiled last month.

Flanked by Lt. Gov. Casey Cagle and House Speaker David Ralston, R-Blue Ridge, Perdue said the legislation calls for a vote on transportation funding in early 2012. The issue would be on the same ballot as Georgia’s next presidential primaries.

While voters across the state would cast ballots in the referendum, the results would be tallied by region. Voters in each of Georgia’s 12 planning districts would decide whether to raise sales taxes to pay for a list of region-specific projects.

Perdue said local government officials in each region would work with Todd Long, director of transportation planning for the Georgia Department of Transportation, to develop project lists.

With the bill still being drafted, it was unclear Thursday whether Long would have the final say on which projects would be funded.

But Perdue said both Long and local officials would be motivated to work together to ensure passage of each regional referendum.

“It’s going to be in the interest of the planning director and local communities to develop projects that are wanted in those regions,” he said.

Perdue said voting in 2012 rather than this year would allow time for planning the project lists. Also, he said, the economy should have turned around enough by then to make voters more confident in supporting needed transportation investment.

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