2003 Legislative Agenda

TRANSPORTATION REVENUES-STATE TRANSPORTATION INFRASTRUCTURE FEE (TIF): 

GTA recognizes the importance of transit to the State of Georgia’s mobility needs and its role in obtaining a balanced transportation system. The current system of federal funding for transportation has moved the nation toward a more balanced transportation policy than often exists in Georgia (in part because currently the state constitution restricts the use of motor fuel taxes to roads and bridges).

While recent state budgets have included a state match for a statewide earmark of federal funds for bus acquisition and separate allocations to five transit systems — representing the largest amount of funds ever appropriated for public transit in Georgia — the need for additional financial resources for transit and other modes of transportation in Georgia remains great. In addition, other than in Georgia, the nation’s ten largest states display a “mix’’ of transit funding by providing significant amounts of state resources, thus decreasing the pressure on local funding of transit, whether through property taxes or other means.

One way to increase funding for Georgia’s transportation system is the adoption of a transportation infrastructure fee (TIF) on motor fuel purchases such as the one being advocated by several interested groups in Georgia. These groups include the Association County Commissioners of Georgia, Georgia Municipal Association, Georgians for Better Transportation and the Georgia Chamber of Commerce. A TIF is a fee that can be used for any transportation related investment. Research has shown that a 6% fee could raise about $458million and he used for various purposes, including local roads, transit, federal matching funds and a state transportation infrastructure bank. Furthermore, such a measure could be made revenue neutral by returning funds to the taxpayer by way of a TIF income tax credit.

GTA appreciates the increased appropriations to public transit, which improves air quality and provides transportation alternatives to Georgia citizens. GTA urges the General Assembly to maintain the momentum and continue finding public transit, both urban and rural, through the passage of legislation creating a state transportation infrastructure fee on motor fuel purchases. Such a fee could be used for all modes of transportation and be made revenue neutral through the granting of a TIF state tax income credit to Georgians.

TRANSIT CAPITAL ASSISTANCE.

Georgia’s bus fleet is aging The percentage of buses over ten years of age operated by the state’s local transit systems is twice the national average. Buses and other capital items are acquired under an 80%/20% federal/non-federal match ratio with the state and local transit systems contributing equally to the 20% match. Georgia law currently caps the state contribution of this match at 10%. Georgia could take a leadership role in the acquisition of buses by contributing a larger share.

GTA requests the General Assembly amend state law to assist local transit systems in acquiring buses by allowing a state participating share of 15%.

TRANSIT OPERATING ASSISTANCE:

Georgia is one of nine states that do not provide general operating assistance for its local transit systems, and it is also the only one of the ten most highly populated states that do not provide such support. Local transit systems that do not have access to dedicated local tax revenues must rely on local government operating subsidies, which typically are provided through local property tax levies or general funds. Local transit systems, both urban and rural, would benefit greatly from state-provided general operating assistance. Also, local governments in rural areas must meet the needs of both the local transit and the state’s “consolidated’’ transportation system. If Georgia were to provide operating assistance to local transit systems, it would join several southeastern states that provide such assistance including Florida, North Carolina, South Carolina, Virginia and Tennessee.

GTA reconnuends that the General Assembly appropriate funds for operating assistance to Georgia’s rural and urban transit systems. Such assistance would ease the burden oii city and county property taxpayers who must now provide for transit operating costs from this revenue source.

FLEXING OF FEDERAL FUNDS TO NON-HIGHWAY USES:

The Transportation Equity Act for the 21st Century (TEA-2 1) allows both Surface Transportation Program (STP) and Congestion Mitigation and Air Quality (CMAQ) funds to be transferred (“flexed’’) to non-highway uses. Nationwide, this has led many areas toward a true intermodal transportation system.

GTA urges the Georgia DOT, local transit systems ,and metropolitan planning organizations to work together to maximize the flexing of STP and CMAQ funds to transit.

STATE INDIVIDUAL INCOME TAX CREDIT:

In 1999, legislation was passed to give state corporate income tax credits to companies that provide certain qualified transportation fringe benefits, including the purchase of transit fare cards, to their employees. The state credit took effect on January 1, 2001, and encourages employers to financially assist their employees to use mass transit, thus helping to promote better air quality in Georgia. While some employers pay a significant portion of the full cost of employee transit fare cards, many do not. Thus, many employees still pay a part of the cost of purchasing transit fare cards. In fact, many employees receive no tax incentives to use transit. For example, since governmental employers do not receive tax breaks through transit fare subsidies given their employees, there is little tangible incentive for these employees to increase their use of transit.

GTA recomends that the General Assembly consider legislation allowing a state individual income tax credit forpersons who purchase their own transit fare cards or have other qualified personal mass transportation expenses. This credit should he available only to the extent that employer subsidies for transit ridership do not cover the costs forpurchasing transit fare cards, and only to the extent that such a credit is consistent with federal law.

FEDERAL ISSUES

FEDERAL APPROPRIATIONS FOR TRANSIT-STATE “EARMARK’’:

In FY 2000 Georgia joined a number of states in obtaining federal appropriations earmarks for bus acquisitions. Statewide earmarks specially benefit smaller systems that do not have the individual clout to obtain federal discretionary bus money on a regular basis.

In a number of states, the Department of Transportation matches a portion of the local funding match required for the federal funds obtained in the earmark. Potential cost savings also exist for local transit systems assisted through this process when common specifications for acquired buses can he developed.

GTA recommends the Georgia Department of Transportation continue to seek a bus “earmark’’ on behalf of the state’s smaller; non—metropolitan, transit systems; begin to assist local transit systems by matching the local share for federal funds so obtained; and consider exceeding the local share.

REAUTHORIZATION OF TEA-2 1:

GTA recommends Congress for its far-reaching transportation law, termed the “Transportation Equity Act for the 21^st Century (TEA-21),’’ and urges continued support for transit development in the nation.

Authorization for transportation funding for the period 1998-2003 stands at record levels, with a balance between highways and transit. This balance has been strengthened by the “guaranteed’’ nature of transit funding, and the reauthorization of TEA-21 should include increased funding for transit in addition to guaranteed funding.

GTA commends Congress on its support of TEA-21 and urges Congress to re-authorize TEA 21 to include increased funding for transit, guaranteed funding for transit, and an appropriate balance between transit and other modes of transportation.