1. Transportation Funding Overview 2010 GCAA Midyear Meeting Mike Kenn, President June 25, 2010

2. Motor Fuel Dollars – FY 2011 LARP 7% General Operations 28% Federal Aid Matching 28% State Aid 4% Debt Service 33%

3. 2010 Legislative Session Two key pieces of legislation regarding transportation funding were passed this General Assembly session  Senate Resolution 821  House Bill 277

4. Senate Resolution 821  Senate Resolution (SR) 821 would amend the Georgia Constitution to allow GDOT to enter into multiyear construction agreements. Georgia voters will have the chance to accept or reject this resolution on the ballot in the November primary.  For example, just $3 million of a $10 million project might actually be spent the first year. The remaining $7 million could be used that year to begin other needed projects. Subsequent years’ motor fuel revenues would meet project costs in those years.

5. Senate Resolution 821 What does a “yes” vote on SR 821 mean for Georgia?  GDOT will have the flexibility to only pay for the amount of work done in a given year;  Increase the amount of necessary projects that can be done in a given year;  Additional projects will put more Georgians to work; and  Help maintain Georgia’s high-quality road system and improve it where needed.

6. Senate Resolution 821 What does a “no” vote on SR 821 mean for Georgia?  GDOT will be limited in the number and size of projects done each year, due to limited revenues;  It will restrict the GDOT’s ability to address much- needed, backlogged transportation projects;  Limits the ability to add capacity to major highways;  Restricts the construction of new roads for economic development;  Major maintenance projects will be delayed; and  Our ability to help create jobs will be diminished.

7. Senate Resolution 821 How will the SR 821 ballot question read? "Shall the constitution of Georgia be amended so as to allow the Georgia Department of Transportation to enter into multiyear construction agreements without requiring appropriations in the current fiscal year for the total amount of payments that would be due under the entire agreement so as to reduce long-term construction costs paid by the state?”

8. Transportation Investment Act of 2010 On June 2 nd, Governor Perdue Signed House Bill 277

9.  The legislation contains a provision to rescue the Clayton County transit system C-TRAN.  MARTA receives a three-year reprieve from a draconian law that requires 50% of its revenue be spent on capital expansion, freeing up millions for operations during the next three years. MARTA, as well as other transit systems around the state, will be able to use their portion of the new 1% sales tax for maintenance and operations for all new construction. Transit Provisions

10. Regional Sales Tax  Proposes a one-percent regional sales and use tax to fund all modes of transportation for a period of ten years.  The bill establishes 12 special tax districts based on existing regional commission boundaries. Counties may not opt out of or switch regions.

11. Regional Transportation Roundtable A Regional Transportation Roundtable is established in each regional commission. Comprised of:  All county chairs or sole commissioners  One mayor from each county, elected by the mayors (two mayors if more than 90% of county population resides in cities) The roundtables meet twice, both times at the call of the GDOT Director of Planning (DP).

12.  Each roundtable elects five of its members to serve on an executive committee. In addition, the House and Senate Transportation Committee Chairs appoint two state representatives and one state senator, respectively, to serve as non-voting members of the executive committee.  The DP, who is appointed by the Governor, facilitates the planning process within each region. Regional Transportation Roundtable

13. Stage One (Criteria)  Within 60 days after Governor approves SSTP – DP provides local governments and MPOs with draft district investment (i.e. project assessment) criteria drawn from the SSTP.  September 30, 2010 - Local Governments and MPO’s submit comments on the criteria to the DP.  November 10, 2010 - Mayors select the municipal representatives for each county for the district’s Regional Transportation Roundtable.

14. Stage One (Criteria)  November 15, 2010 - DP submits final recommended assessment criteria for each district and calls the first of two meetings of the regional roundtables.  Flexible - The Regional Transportation Roundtables meet to amend and approve the DP’s investment criteria and elect members for the Executive Committees.

15. Stage Two (Project List)  Local Governments and MPOs receive comments from members of the General Assembly within their districts and then submit project requests to the DP.  DP will use the districts’ investment criteria to assess projects, assemble a list of example investments, and deliver it to each executive committee.  Executive Committees consult with the DP and choose from the list of example investments to create a draft investment list for consideration by the full Regional Transportation Roundtable.

16. Stage Two (Project List)  August 15, 2011- The DP sends the final draft investment list, as approved by the executive committees, to all necessary parties and calls the second and final meeting of the Regional Transportation Roundtables.  With the draft investment list, the DP must include a statement of the specific public benefits expected from each project on the list.

17. Stage Two (Project List)  Local governments, legislators and MPOs may submit comments on the “draft investment lists” to the Director of Planning and executive committees up until two weeks prior to the final meeting.  Two town halls must be held in each region to receive public input on the draft lists. The executive committees send a summary of comments to the DP and full roundtables.

18. Stage Two (Project List)  October 15, 2011 - Roundtables meet and must approve or reject the draft investment list.  If the roundtables reject the list, they may make amendments by choosing from the initial list of example investments.

19. Stage Two (Project List)  If no list is approved by a majority of the members of the roundtable, a “special district gridlock” shall be declared and no election will be held in the region.  As a consequence, every local government within the region must provide a 50% match to receive any Local Maintenance Improvement Grants (formerly LARP and State Aid) from GDOT. In addition, the region cannot try again for at least two years.

20. Stage Three (Referendum)  2012 General Primary - Georgia citizens in regions that approved an “investment list” will vote on whether to approve a 1% sales tax to fund the list.  Votes will be tallied by region and the tax will only be levied in regions where a majority of the voters approve.

21. Stage Three (Referendum)  If the voters in a region fail to pass the referendum, every local government within must provide a 30% match to receive any Local Maintenance Improvement Grants.  If the voters pass the referendum, every local government within must provide only a 10% match.

22. 12 Regional Commissions

23. Regional Commission Tax Revenue Regional CommissionRevenues Central Savannah River Area Regional Commission$692,174,224 Three Rivers Regional Commission$702,240,576 Coastal Regional Commission$1,174,792,674 Northwest Georgia Regional Commission$1,188,729,242 Georgia Mountain Regional Commission$896,319,957 Heart Of Georgia- Altamaha$364,931,940 River Valley Regional Commission$537,481,869 Middle Georgia Regional Commission$782,349,977 Northeast Georgia Regional Commission$727,557,503 Southern Georgia Regional Commission$565,472,011 Southwest Georgia Regional Commission$475,763,848 Atlanta Regional Commission$7,273,902,931 *Based on DOR Calendar Year (Jan-Dec) 2009 LOST Distributions (ELOST is used for counties with no LOST). $15,381,716,752

24.  Over a 10 year period, this legislation allows for an additional $16 to $24 billion dedicated to transportation investment throughout the State.  $8 to $12 billion in metro Atlanta alone. Regional Commission Tax Revenue

25.  The tax is levied for a 10-year term.  All revenues will be invested in the district where the funds are collected.  A portion of each district’s revenues will be designated for discretionary use by local governments within the district, based on the LARP formula. The discretionary portion will be 15% in the Metro Atlanta Region and 25% in all other districts. Other Bill Highlights

26.  Creates a five member Citizens Review Panel which is charged with the review of the administration of the projects and programs included on the investment list.  Members of the panel must be residents of the region. The Speaker has three appointees and the Lt. Governor has two. Other Bill Highlights

27.  The Georgia State Financing and Investment Commission (GSFIC) will serve as the trustee for each district’s funds.  GDOT will manage the budget, schedule, execution, and delivery of all projects in the state, except bus and rail mass transit systems and passenger rail in the Metro Atlanta Region, which will be managed by GRTA. Other Bill Highlights

28.  Upon completion of a project or as funds are needed for project “elements”, GDOT (or GRTA) will invoice GSFIC, which shall make payments “promptly”.  GDOT, GRTA, and GSFIC will consult quarterly on the schedule and delivery of projects on the approved investment list. Other Bill Highlights

29.  GDOT and GRTA are authorized to determine whether a project should be designed and constructed by the department, by a local government, or by another public or private entity.  The DOR Commissioner will publish and maintain a website that shows a project’s status and whether the project is over or under budget.  The investments made with this tax are not subject to balancing. Other Bill Highlights

30.  Creates a Transit Governance Study Commission which shall prepare a preliminary report on the feasibility of combining all of the regional public transportation entities into an integrated regional body. Transit Governance Study Commission

31.  Legislative member to serve as chair  4 Senators from district appointed by Lt. Governor  4 Representatives for district appointed by Speaker  Chair of MARTA Oversight Committee  ARC Chair  RTC Chair  ARC Staff person  GRTA Executive Director  MARTA GM  Directors of other county transit systems Transit Governance Study Commission

32. Transportation Funding Overview 2010 GCAA Midyear Meeting Mike Kenn, President June 25, 2010