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NCDOT’s new criteria for loop-building gives East End Connector a 2014 start date (News and Observer)

Thursday, July 29th, 2010

NCDOT’s new criteria for loop-building gives East End Connector a 2014 start date (News and Observer)

NCDOT expects to start construction in fiscal year 2014 on Durham’s East End Connector, one of North Carolina’s longest-delayed road projects.

First proposed in the 1970s, the $162 million project on the east side of Durham would create a north-south, stoplight-free drive between Interstate 85 and Research Triangle Park. It would upgrade part of U.S. 70 into a freeway and build a link between it and the Durham Freeway.

The 2014 start date shows up in a new draft schedule (attached below, with separate rating sheet) for DOT urban loop projects across the state. Groundbreaking had been set for fiscal year 2013 in a schedule published two years ago, although DOT officials later said that delays were likely because of limited funds.

Following up on Gov. Bev Perdue’s pledge to remove politics from the state’s decision process for road construction, DOT is publishing a new set of criteria it will use to set priorities for urban loops.

The state Board of Transportation will receive a draft version next week, with the final list to be adopted in 2011 after more than a year of review and public comment across the state.

The East End Connector and other projects are rated (attached below) by factors including how much car and truck traffic they will serve and how much travel time they will save, compared against project costs.

The East End Connector ranked sixth out of 21 loop projects evaluated across the state in the new rating system. But it was one of only seven projects where construction is tentatively scheduled to start in the next 10 years.

That’s all the state can afford to build.

“If we were going to build all the loops today, it would cost us $8 billion,” said Greer Beaty, DOT spokeswoman. “But this year we have only $150 million in loop money to spend, so we don’t even come close to having enough.”

Other start dates are fiscal 2011 (this year) for I-295 in Fayetteville, 2013 for an I-40 and US 17 project in Wilmington, 2014 for an I-485 widening in Charlotte, 2014 and 2017 for the next sections of Greensboro’s loop, and 2020 for Greenville’s Southwest Bypass.

“This is a realistic schedule,” Beaty said.

Another Durham project ranks higher under the new loop criteria – a bypass for U.S. 501 on the north side of the city – but much more environmental and design work is needed before it can be put on the construction schedule, Beaty said.

Two projects to complete Raleigh’s 540 Outer Loop are included on DOT’s evaluation list, but they are not listed on the construction schedule because their fates will be determined separately as toll projects. The Southern Wake Freeway is ranked seventh, and the Eastern Wake Freeway is ranked 13th.

The Triangle Expressway, which includes the western portion of the 540 Loop, is under construction now and will open as the state’s first modern toll road in 2011 and 2012.

Submitted by BruceSiceloff on 07/29/2010 – 14:51

LaHood Fends Off Lawmakers On Fuel Taxes (The Journal of Commerce Online)

Thursday, July 29th, 2010

LaHood Fends Off Lawmakers On Fuel Taxes (The Journal of Commerce Online)

DOT secretary says there may not be “the courage” in Congress to take on issue

Transportation Secretary Ray LaHood came under fire Tuesday from House lawmakers over infrastructure financing, taking heat from those for and against raising taxes to pay for highway and transit projects.

LaHood restated the Obama administration’s opposition to raising federal fuel taxes, and defended his remarks from last week that various other “outside the box” financing ideas could help cover surface transportation needs without a tax hike.

The secretary told a highway builders conference July 23 that “raising the gas tax is not an option.” But senior members of the House Transportation and Infrastructure Committee challenged him on the issue, including ranking Republican Rep. John Mica, who seemed to believe he had turned LaHood against a tax increase at the hearing.

The Florida Republican told LaHood the November election would bring “a conservative wave” that would leave Congress less willing to raise federal fuel taxes.

Although LaHood and other officials have repeatedly said the president and the DOT do not favor raising the gas tax while the economy is weak, Mica asked LaHood if he was “going to continue advocating a gas tax increase” to fund transportation needs.

LaHood said over his 18 months as DOT secretary “I’ve never advocated a gas tax. The president is opposed to raising the gas tax . . . We have almost 10 percent unemployment in America. People can little afford to buy a gallon of gasoline, let alone if we were to raise the tax on it. So I do not advocate, the administration does not advocate, raising the gas tax.”

Mica told LaHood, “I’m glad to hear you join me in declaring it dead.” Mica also said he favors a much larger discretionary infrastructure fund than the $4 billion a year the administration is seeking, and said he would want such a fund to be about 10 times that size.

But Rep. Peter DeFazio, D-Ore., who chairs the highways and transit subcommittee, chided LaHood for suggesting the nation’s transportation needs could be met by a combination of current-level Highway Trust Fund taxes, the proposed discretionary spending fund, road or bridge tolls and greater use of partnerships that combine public money with private investments.

“Are we going to toll 150,000 bridges so we can rebuild them or bring them up to snuff?” DeFazio asked, citing the number of those identified as needing repair. “Are we going to toll the entire federal interstate (highway) system?”

LaHood said the administration favors infrastructure investment and agrees with T&I Committee Chairman James L. Oberstar, D-Minn., “on the lion’s share” of what Oberstar proposed in a $450 billion surface transportation reauthorization bill.

“The only thing we need, the only thing, is about $450 billion,” LaHood said. “You know as well as I do, the Highway Trust Fund is deficient. So I don’t know if the courage is around here to do something about that. So the reason I talk about tolling, public-private partnerships, the infrastructure fund, is that we need to think outside the box about how we’re going to do all the things that the president wants to do, that Ray LaHood wants to do, that you all want to do.”

He said “we love doing transportation projects at DOT . . . We need to work together to find the resources to get a bill (through Congress) and to get the job done.”

Contact John Boyd at jboyd@joc.com.

John D. Boyd | Jul 27, 2010 9:21PM GMT
The Journal of Commerce Online – News Story

Counties turning to local sales taxes to raise money (WRAL.com)

Tuesday, July 27th, 2010

Counties turning to local sales taxes to raise money (WRAL.com)
A growing number of counties facing tight budgets are seeking voter approval to raise local sales taxes.

Ten counties have already decided to put local-option sales taxes on the November ballot, including Orange, Harnett and Robeson. Durham County commissioners were expected to vote Monday night on whether to add their county to the list.

Durham County officials said the county could raise nearly $8 million a year with a quarter-cent increase in the sales tax.

“I think the counties have gone through this budget theme for a couple of years now, and the citizens are starting to see the impacts hitting them personally,” said Todd McGee, spokesman for the North Carolina Association of County Commissioners. “They’re seeing their libraries being closed earlier. They’re seeing parks being closed. They’re seeing other services being cut, and the citizens are starting to feel it.”

In 2007, state lawmakers gave cash-strapped counties the option of asking voters if they would agree to a land-transfer tax or a higher sales tax to help deal with growth issues like building new schools and roads and extending water and sewer lines.

The land-transfer tax has been defeated every time it’s been put on the ballot, and the quarter-cent sales tax idea has failed 44 times, including twice in Harnett County and once each in Cumberland and Robeson counties.

Still, voters have approved a local-option sales tax 16 times, including eight of 10 referenda since last November. Cumberland County voters even changed their minds and approved a sales tax increase in a second vote. Lee and Duplin counties also have approved the added sales tax.

Reporter: Cullen Browder
Web Editor: Matthew Burns
Posted: 6:12 p.m. yesterday

Cities tackle traffic head-on with commuter options (USA Today)

Tuesday, July 27th, 2010

Cities tackle traffic head-on with commuter options (USA Today)

MINNEAPOLIS — The morning rush-hour traffic on Interstate 35W is crawling. The highway, which connects downtown Minneapolis and its northern and southern suburbs, is the busiest road in the state. When traffic snarls here, backups spread across the region.

A year ago, Peggy Birler, 45, would have been right in the thick of it, spending up to an hour driving alone to work. Today, Birler has a much shorter commute: She drives less than a mile to a Park & Ride lot, boards a bus for a 10-minute trip downtown, zipping along in a bus-only lane, then walks 1½ blocks to her office.

“When I drove in, it was just too much, with the congestion and everything,” says Birler, marketing manager at Dunham, a mechanical and electrical engineering firm in downtown Minneapolis. “I was a little nervous about taking the bus. Now, I wouldn’t go back to driving.”

Getting people such as Birler to choose public transit, carpools, biking, telecommuting or other alternatives to driving to work solo is a major part of a campaign to relieve congestion on I-35W and other roads here. The state is spending $500 million, including $133 million in federal money granted to cities running innovative projects, on a broad effort to ease logjams on I-35W.

Officials here say it’s working. I-35W used to be “a road you wanted to avoid,” says Nick Thompson, who manages congestion-relief efforts for the Minnesota Department of Transportation. “There was congestion any day of the week, any time of the day. Now, this is the next-generation freeway.”

Commuter use of three Park & Ride lots serving the highway has increased by 16%, 19% and 25%; trips on I-35W are an average 10-15 minutes faster, and the agency has achieved free-flowing traffic in express lanes on the highway 98% of the time.

The I-35W project is part of a regional approach that emphasizes creative management of the existing transportation system, rather than expanding it, and seeks to make alternative commuting options widely available. The goal: Provide residents with a reliable, on-time commuting option every day.

Spurred by a bridge collapse on I-35W in 2007 that killed 13 motorists and injured 145, Minnesota also has fundamentally changed its transportation funding system, approving billions for roads, bridges and transit; the state also gave metropolitan governments the power to implement sales taxes for transit improvements.

The congestion-easing efforts have helped make the Twin Cities, along with Seattle, a national leader among cities working to keep traffic moving, says Tim Lomax, a congestion specialist at the Texas Transportation Institute at Texas A&M University.

“Those two are at the forefront of what’s going on,” says Lomax, co-author of the annual Urban Mobility Report, which ranks congestion trends in 90 cities. “The things that stand out in my mind are the use of information, very detailed information that drives their decisions about day-to-day operations and long-term projects. They are not only thought leaders but action leaders.”

The cost of congestion

Snarled traffic is a frustrating reality for the modern driver. It’s also a walloping blow to the nation’s economy. Congestion costs the USA $87.2 billion a year in gasoline and lost productivity, according to Lomax’s most recent report. That’s 2.8 billion gallons of wasted fuel and 4.2 billion hours of wasted time.

Many transportation analysts agree that the USA can’t build its way out of congestion. When a new road is built, usually at great cost, it quickly fills with traffic.

Congestion is a fact of life in large urban areas, Lomax says, but roads don’t have to be congested all day. The best way to deal with congestion is smart traffic management. That involves controlling how many cars are on a highway at a given time through tools such as flexible tolling, in which drivers pay a toll to use special lanes during congested periods, and ramp metering, in which a traffic signal controls the pace of vehicles merging from an entrance ramp.

It also includes quickly clearing wrecks and other incidents; providing transit options and getting drivers to use them, and synchronizing traffic signals, not only on primary roads but also on parallel corridors that drivers use as alternatives.

Most cities use a combination of these methods. Among the steps taken to cut congestion here:

•The Twin Cities try to ensure that transit riders and carpoolers avoid daily traffic tie-ups. The region has 300 miles of bus-only lanes, in which the right shoulder of highways is opened for buses during peak traffic; that’s more than the rest of the USA combined. Minnesota also recently added “priced dynamic shoulder lanes,” in which the left shoulder of highways is restricted to buses, carpools and single-car occupants who pay a toll.

•The state rebuilt some key streets in downtown Minneapolis, widening sidewalks, eliminating on-street parking and adding a second bus lane, which allows buses to pass stopped buses. Since December, those changes have enabled buses on the affected streets to increase operating speeds by 60%, says Bob Gibbons, spokesman for Metro Transit, which provides 90% of local bus service here.

•The region, which has had just one light rail line since 2004, is expanding its network. A central corridor connecting downtown Minneapolis and downtown St. Paul is expected to begin service in 2014; a third line, connecting Minneapolis and suburban Eden Prairie, was approved in May.

•Minneapolis emphasizes alternative forms of commuting. Just 35% of workers downtown drive to work alone, about half the national average; 40% use transit, 20% vanpools or carpools and 5% bike or walk, says Dan MacLaughlin, executive director of the Downtown Minneapolis Transportation Management Organization, a non-profit partnership between the city and the business community.

•MinnDOT is trying to cut congestion by encouraging employers to offer workers flexible schedules that allow them to work from home. The impact is tiny but growing: More than 30 employers in the Twin Cities now offer telework options.

Seattle cuts collisions

Across the USA, about 25% of congestion is caused by collisions. Seattle, which has one of the nation’s most comprehensive traffic management systems, aims to reduce backups by cutting the number of accidents.

Seattle next month becomes one of the first U.S. cities to use a European-style active traffic management system, in which signs above each lane flash variable speed limits, whether a lane is open ahead and up-to-the-minute traffic information.

The signs, installed on the northbound lanes of Interstate 5 — one of the state’s most heavily traveled corridors, where crashes cause up to 70% of congestion — will display speed limits from 40 mph to 60 mph, depending on traffic conditions. This will allow drivers to slow down well before they reach bottlenecks, thus reducing rear-end collisions and keeping traffic moving, although more slowly.

“In Germany, Belgium and England, they’ve seen a 30% reduction in injury crashes with the system,” says Patricia Michaud, a spokeswoman for the Washington State Department of Transportation.

The department installed roadway traffic sensors, data-carrying fiber optics and new traffic cameras on a 9-mile stretch of I-5 in south Seattle. Information on traffic conditions is fed into a traffic-management center and overhead lane signs respond automatically; the process is monitored 24 hours a day by traffic engineers.

The state’s wide-ranging effort includes 230 miles of lanes restricted to vehicles carrying multiple occupants, ramp metering and use of traffic cameras and variable message signs, says Craig Stone, director of the toll division of the state Department of Transportation. Other efforts:

•Travel times have improved on 14 of 18 surveyed commuter routes.

•Thirty-two of 48 high-occupancy vehicle routes running parallel to the most crowded lanes show improved travel times.

•The average time it takes to clear collisions, disabled vehicles and other congestion-causing incidents has been cut from 18 minutes to 12.9 minutes.

•Tow companies hired by the state can receive a $2,500 bonus if they respond to major crashes within 30 minutes and clear them within 90 minutes.

Moved by tragedy

The collapse of the I-35W bridge over the Mississippi River during the evening rush hour on Aug. 1, 2007, prompted the state Legislature in 2008 to authorize a transportation funding package that will generate $6.6 billion over 10 years for roads, bridges and transit projects. It included an 8.5-cent increase in the state gas tax — the first rise in 18 years — and granted seven counties in the Twin Cities metropolitan area the authority to impose a quarter-cent sales tax for transit projects.

The tragedy also boosted efforts to pursue alternative commutes by employers, MacLaughlin says. “The business community came up with a bunch of creative ways to get their people downtown. The catastrophe motivated people to really work on this issue, and that has carried over.”

Merete Wells, 25, a senior associate with the Minneapolis public relations firm Carmichael Lynch, takes advantage of an unusually creative option offered by her company: a “shoe incentive.”

“They will give you $50 toward the purchase of a new pair of shoes a couple of times a year if you walk to work,” Wells says. “It’s a nice little incentive.” She used to drive to work from St. Paul. However, when her old Volvo started to wear down, she decided to move closer to work instead of buying a new car. Now, instead of a 30- to 45-minute commute in summer, which stretched to 60 to 90 minutes in winter, she walks 10 minutes to work.

Many Minneapolis workers now view alternative commute incentives as an employee benefit, says Kirsten Spreck, director of corporate real estate at Thrivent Financial for Lutherans, a faith-based financial services organization.

Almost all of its 1,200 Minneapolis employees participate in the incentive program, which offers $50- to $100-a-month credits in pre-tax dollars, which the employees can use to pay for parking, a transit pass, and carpool, motorcycle, biking or walking costs such as shoes.

David Levinson, a civil engineering professor at the University of Minnesota, cautions that everything being done here is “just pieces to a puzzle. I wouldn’t say they solve the congestion problem by any means. Only a small percentage of the workforce actually works downtown.”

Across the region, only about 2% of all work trips are on transit. “That sounds pretty bad, and it is,” he says. “But nationally, it’s less than 1%.”

While there’s still much room for improvement, the Twin Cities’ efforts are winning national praise.

“The aggressive operations focus that MinnDOT has is reflected in projects like the bus shoulder lanes, which a lot of places aren’t contemplating because it’s out of the ordinary,” Lomax says. “It’s a simple idea that’s pretty complex to get done — but the benefits are significant.”

By Larry Copeland, USA TODAY

NC governor keeping options open for revenues (Associated Press)

Monday, July 26th, 2010

NC governor keeping options open for revenues (Associated Press)

RALEIGH, N.C. A day after Gov. Beverly Perdue signed into law a bill banning video sweepstakes games, she suggested she’d listen to proposals to legalize video poker again in North Carolina.

And after Perdue signed a bill designed to reform the state Alcoholic Beverage Control system, she said she still was interested in privatizing parts of the liquor system, although the idea was panned before this year’s session began. An outside evaluation of the system is moving ahead.

“I am not through with the ABC system yet,” Perdue said.

So why stir the pot for a pair of politically charged issues like alcohol and gambling?

She could believe that heavily regulation of video gaming, which has kept popping up in new forms in North Carolina since a 2006 ban on traditional video poker machines, is the best way to control it. Perhaps she thinks getting the state out of the liquor business is a better way to manage alcohol as views on drinking become more permissive.

But her willingness may be the result of the harsh fiscal realities state government may face for the third year in a row. With a shortfall already projected to exceed more than $3 billion beginning in mid-2011 – half of it from lost federal stimulus dollars – Perdue doesn’t want to close any avenue that could generate new state revenues.

Video poker and ABC privatization could bring in several hundred million dollars.

Perdue told reporters last week she had already started working on next year’s budget proposal three weeks into the new fiscal year.

“We have proven that we know how to invest in our core, which is economic development and education,” Perdue said. “If that requires privatizing a piece of state government, I believe the General Assembly will have the courage – and folks across the state – to do what is needed to do to stand up and be sure that North Carolina’s core missions will be all right.”

Perdue’s suggestion that the video sweepstakes games or video poker might be revived was surprising. She had just agreed with legislative leaders that the computer-based games sprouting up at Internet cafes, business service centers and makeshift “casinos” were bad.

“My primary concern was the fact that they had just morphed into something uncontrollable all over the state,” Perdue said.

Then, she added: “I think if you have video sweepstakes, whether it’s video poker or video machines in general, we really do need to have some kind of concentrated, organized, unified system of regulation where they are under a set of standards or regulations.”

Perdue spokeswoman Chrissy Pearson said later while the governor wasn’t actively looking to revive video poker, “she would be open to look at legislation to see what direction to take that. The most important thing will be to regulate it very carefully and make sure it was regulated correctly.”

While Senate leader Marc Basnight, D-Dare, and House Speaker Joe Hackney, D-Orange, strongly oppose video poker, about two dozen House members declined to support the sweepstakes ban when it was approved earlier this month. A huge shortfall could help bring more support for legalizing video poker if sweepstakes games owner find another way to get around a ban.

A report from the North Carolina Education Lottery gave more credence to numbers pushed by the amusement machine owners for the past year about what the state could generate in tax revenues from regulating the industry. It found the state could receive $350 million in net revenues in its first year, reaching $576 million by the fourth year.

Bill Brooks with the North Carolina Family Policy Council is puzzled why Perdue would even consider giving video poker a new foothold in North Carolina. Perdue shouldn’t be lured by the potential short-term jackpot from the games because the cost to families harmed by gambling addictions and to the state through reduced economic activity when consumers’ money goes into games are much greater.

While lieutenant governor, Perdue cast the tie-breaking vote that approved lottery legislation in 2005.

“Every governor wants to make their mark,” Brooks said. “Maybe Gov. Perdue wants to be known for gambling.”

As for the ABC system, selling or leasing a chunk of the ABC system to an outside group seemed dead this spring after dozens of local government officials, substance abuse providers and religious leaders argued the state’s unique “control” system worked well at limiting alcohol abuse while providing more than $250 million in government revenues annually.

“The system has been a good system overall and we would like to keep it that way,” said Al Brown, a Concord city council member who opposes privatization.

Even if video poker and ABC privatization don’t occur, Perdue could benefit by talking like someone willing to consider new ideas, said Gary Pearce, a longtime Democratic consultant who used to work for Gov. Jim Hunt, Perdue’s mentor.

“I’m sure it’s about state finance issues,” Pearce said, but “it’s also a way of talking about shaking things up.”
Published Sun, Jul 25, 2010 09:11 AM
Modified Sun, Jul 25, 2010 09:21 AM

Transportation sales tax initiative in development (Albany Herald.com)

Monday, July 26th, 2010

Transportation sales tax initiative in development (Albany Herald.com)
If approved by voters, a 2012 referendum would allow a one-percent sales tax to be collected for 10 years

ATLANTA, Ga. — The Georgia Department of Transportation is busy trying to implement the framework of a regional sales tax proposal that would fund transportation projects in 12 different regions statewide.

Approved by the Georgia General Assembly and signed into law by Gov. Sonny Perdue, HB 277 completely overhauls the way GDOT funds local transportation projects, Senior Planner Todd Long said.

The regions comprise the same areas as the existing Regional Development Commissions. Southwest Georgia’s region consists of Baker, Calhoun, Colquitt, Decatur, Dougherty, Early, Grady, Lee, Miller, Mitchell, Seminole, Terrell, Thomas and Worth counties.

According to Long, HB 277 would allow for those counties to levy a one-percent sales tax for 10 years that would fund transportation projects and programs specifically within the region, meaning the money raised in the district stays in the district.

Voters in the majority of the counties within the region will have to approve an August 21, 2012 referendum for it to pass, although individual counties will not be allowed to opt out of the funding.

Long said that the reason for the change in the way GDOT funds projects comes as the push for more fuel efficient vehicles has grown, which reduces the amount of revenues GDOT has been able to generate through the motor fuel surcharge.

“We’re getting to the point where its becoming not feasible to keep up with the maintenance and growth of infrastructure demands using just the motor fuel tax,” Long said.

A new funding mechanism for road and transportation projects is a double-edged sword for local governments that have watched as funding for GDOT’s Local Assistance Road Program, or LARP — the program that helps local government fund vital infrastructure improvements — has been steadily reduced, but who are also hesitant for change.

LARP will be replaced when HB 277 is implemented.

“There are definitely concerns,” Early County Commission Chairman Richard Ward said. “But compared to going year to year with LARP and watching it dwindle to a pittance, I’d be proud to get something down here to use, even if it doesn’t come directly into Early County, so long as it comes to the region.”

“Frankly, we’re tired of watching money flow into Atlanta and getting only unfunded mandates in return,” he said.

One of Ward’s biggest concerns, is one that GDOT is still grappling with — the extent of the Georgia Department of Revenue’s involvement in the whole process.

While Long has said money will have to sent to the Department of Revenue in Atlanta and then be divided back to the counties like current sales taxes are, its unclear whether GDOT would be willing to consider allowing the counties themselves to collect the sales taxes and remit them to Atlanta.

“I have some real issues with the Department of Revenue,” Ward said. “There is no transparency for the money that is being collected and returned now. How are we going to ensure that everyone is treated fairly?”

In Dougherty County, some officials share the same concern, citing an example last year when the DOR both released and withheld sales tax revenues for what they said were mistakes — one involving a manufacturer who apparently mistakenly paid sales taxes on exempt items for years and the other involving an unknown collection of sales taxes that ultimately was dispersed evenly to all counties who were participating in special local option sales tax programs.

The Georgia Open Records Act — the law that supposedly promotes open and transparent government to the public — specifically exempts the Georgia Department of Revenue.

As for the details of the initiative, Long provided The Herald a copy of a powerpoint presentation he’s been making around the state which explains much of the program.

Each region will have a roundtable which will consist of the county commission chairs and one municipal representative, meaning that each county would have two representatives on the roundtable.
These roundtables will ultimately set the projects that are to be funded using the sales taxes but the projects will come from a list developed or approved by the state.

Just like a SPLOST referendum, funding can only be granted to projects approved by the voters such as engineering, property acquisition, construction, maintenance, etc.

A portion of the funding, which is roughly estimated to be between $40 to $50 million per year in the Southwest Georgia Region, will be designated for discretionary use by local governments within the region. Based on the former LARP formula, that discretionary amount will be 25 percent in the SWGA Region.

At the end of the 10-year period, the tax can be reinstated or renewed with another project list through a vote of the majority of the counties in the region and special act of the Georgia General Assembly.

The Georgia State Financing and Investment Commission will serve as the trustee for each district’s funds, while GDOT will manage the budget, schedule, execution and delivery of all projects in the state.

A project’s status and whether it is over or under budget will be published and maintained by the Commissioner of the DOR on a website.

The bill also calls for the creation of several new transit-related government entities.

These include the Local Maintenance and Improvement Grant Program which combines former state-aid and LARP programs to help fund local projects; a Transit Governance Study Commission to prepare a report on the feasibility of linking regional public transit; and the Georgia Coordinating Committee for Rural and Human Services Transportation which will be part of the Governor’s Development Council and will examine how transportation services are provided throughout the state and make recommendation to the Office of Planning and Budget.

Posted: 12:00 AM Jul 25, 2010 July 25, 2010
Reporter: J.D. Sumner, government writer
Email Address: j.d.sumner@albanyherald.com

LaHood Says No Fuel Tax Increase Needed for Transport (The Journal of Commerce Online)

Monday, July 26th, 2010

LaHood Says No Fuel Tax Increase Needed for Transport (The Journal of Commerce Online)
Highway funding to come from tolls, Obama’s proposed infrastructure fund

Transportation Secretary Ray LaHood said a combination of current-level gas tax receipts, road and bridge tolling and President Obama’s proposed infrastructure fund could offer a way to fund a long-term federal infrastructure program without new taxes.

Appearing before a heavily attended conference in Washington, D.C., of the American Road and Transportation Builders Association, LaHood vowed “raising the gas tax is not an option” to increase money available for federal transport spending.

LaHood said the Highway Trust Fund’s income stream is “insufficient” to meet all the needs, and said “tolling can raise a lot of money” to augment it. The Obama administration has also asked Congress for a new $4 billion ongoing infrastructure fund that DOT would administer much like discretionary stimulus program grants, and LaHood said more use of creative public-private partnerships could help as well.

Adding up all such efforts, he said, raises the possibility of “a path forward without raising taxes.”

LaHood’s statement rejecting a fuel tax hike was the latest reiteration of the administration’s standing policy — to oppose raising federal gasoline and diesel fuel taxes while the economy is still recovering from recession and unemployment remains high.

But his July 23 comment also comes as the Department of Transportation prepares to issue guiding “principles” for how Congress develops its next multi-year surface transportation plan. Federal programs are due to expire at the end of this year unless lawmakers extend them again or pass a broad reauthorization that reshapes policy.

Many ARTBA members want the administration to back away from its fuel tax stance, and after his speech some were grumbling that a gas tax hike remains the simplest and least costly way to beef up transport infrastructure funding.

One ARTBA participant noted that LaHood early last year floated the idea of raising funds through a new tax on vehicle miles traveled, a concept that was soon rejected by the White House. Asked if a VMT plan could come back, LaHood quickly said, “No.”

Another participant asked him if a tax that helps transport programs could emerge from climate or energy legislation, but LaHood deflected the question by saying that is someone else’s portfolio. One bill offered by Sens. John Kerry, D-Mass., and Joseph Lieberman, I-Conn., would have directed billions of dollars into the Highway Trust Fund from sale of carbon emission allowances, but that legislation has failed to gain broad support.

– Contact John D. Boyd at jboyd@joc.com.

John D. Boyd | Jul 23, 2010 4:01PM GMT

Businesses question fees for Internet cafes (Fayetteville Observer)

Wednesday, July 21st, 2010

Businesses question fees for Internet cafes (Fayetteville Observer)

A lawyer says Fayetteville’s “oppressive” fees on sweepstakes lounges are designed to close them and might be challenged in court.

“You can’t tax something out of existence,” said Lonnie Player Jr., a Fayetteville lawyer representing owners of the lounges.
The city intends to charge each owner a “privilege license” of $2,000 per location and $2,500 per computer terminal. For some locations with dozens of video gambling machines, the bill can run more than $100,000.

The city says the bills will be due Sept. 1, even though the machines will become illegal Dec. 1 under legislation that Gov. Bev Perdue signed into law Tuesday.

Player says courts have ruled on a case-by-case basis that excessive taxes or fees are punitive and unfair. He likened Fayetteville’s fees to zoning adult entertainment out of business – a practice the U.S. Constitution forbids.

Sweepstakes Internet cafes have sprung up all over North Carolina as a loophole to a state ban on gambling in 2007. They’re in bars and lounges and gas stations and strip malls. Customers buy Internet time to use the computer terminals for chances to win sweepstakes that can be redeemed for cash.

Several communities have begun taxing the industry. The fees vary. So do the communities’ intentions for collection.

Hope Mills adopted the same fees as Fayetteville in June. On Monday, town officials decided they would discount those fees by almost 60 percent because of the impending ban. In other words, they would charge for five months starting in July. Bills will go out in August.

Mike Bailey, Hope Mills’ chief building inspector, said the decision was made after a consultation with Town Attorney John Jackson.

“We felt that it was a better way of doing it, since they will no longer be able to operate after Dec. 1,” Bailey said. “It would be unfair to charge them for a whole year when we know they are not going to be in business past Dec. 1.”

Spring Lake’s newly adopted fees are $500 per location and $300 per terminal. Mayor Ethel Clark said officials might not charge the full amount, but a board decision has not been made.

Fayetteville City Attorney Karen McDonald has taken a different stance. She told the City Council last week the city can charge the fees because the businesses have not been banned yet. She said businesses are not refunded privilege license fees after they close.

How much the city intends to collect is not certain, but one city official this month pegged the figure at $1.2 million. The anticipated revenue was not used to balance the new budget, so the council will need to decide what to do with the money.

On Sunday, Mayor Tony Chavonne told the City Council in a weekly e-mail update that he would like to use the extra money to annex Shaw Heights, an impoverished community along Murchison Road next to Fort Bragg.

“As you recall, there were some upfront costs associated with the annexation,” the mayor’s e-mail said. “The area should have been annexed years ago and lies directly on a major new corridor directly between our city and the military base.”

Irked business owners

Owners of the sweepstakes lounges point to Fayetteville’s wide discrepancy in privilege license fees as evidence they are being overcharged.

For “topless entertainment,” the fee is $100 a year and $25 per peep-show machine. At cinemas, the owner pays $200 per movie screen; others pay $5 per electric video game. Fortunetellers have to pay $1,000.

The business owners also complain they were given little notice. Fayetteville officials first publicly discussed them in June.
When Ann Drabek went to City Hall on June 28 to apply for a privilege license, she was unaware of the fees. She wanted to open a second sweepstakes lounge in Fayetteville. Her first one, Lucky Charm Internet Cafe, opened in Hope Mills last fall.
She noted on her Fayetteville application that her business would involve “phone time sales” and “sweepstakes.” She said a city employee in the Finance Department, after a check with the zoning rules, told her to strike out “sweepstakes” from the application and, according to her receipt, she paid $100 for the privilege license.

The City Council adopted the fees, along with a new budget, that same evening of June 28.

On July 9, Drabek opened her Lucky Charm location on Ireland Drive in Fayetteville. Inside, 28 black-paneled machines with blinking screens greet customers. They are offered free snacks and sodas or bottled water. They can play blackjack and variations of poker or watch cherries and diamonds spin around on the screen.

Another 15 machines stored in back rooms are not ready for the public, Drabek said. They have to be programmed and outfitted to meet North Carolina law, she said.

Fayetteville doesn’t care.

Someone from the city stopped by last week to do an inventory and told Drabek that all 43 machines would be counted. She expects to get a bill for $109,500 from the city soon.

“It’s an absurd amount of money they are trying to charge us,” she said.

Drabek, a commercial real estate agent, said she never would have opened a second sweepstakes lounge in Fayetteville had she known about the fees. Drabek knew last month that legislators in Raleigh might ban the machines, but she didn’t want to wait for the state to act, she said.

Chris Marion, who operates Crazy Hank’s in a strip mall on Strickland Bridge Road, said Fayetteville’s fees were designed to drive him and most others out of the business. His bill will be about $50,000 for his business, which he opened in May.

“Once the state passed the law, I thought that was the end of it,” he said. “I never would in a million years think the city would try to extort $50,000 from a business that has to close in five months.”

He said his sweepstakes lounge is turning a profit, but he doesn’t want to pay that kind of bill.

“I think the city thinks these things are cash cows,” he said. “For the new guys like us – we are pretty small – it’s not doing what we thought they would do.”

Player said he got involved this spring on behalf of the industry, talking to town officials in Calabash, Clinton, Laurinburg and other places where the fees were being considered. He said he has persuaded some towns to forgo the fees and others to substantially reduce them.

Player said the fees raise constitutional questions and run afoul with a law giving the federal government exclusive authority to tax the Internet. But his clients want to be practical.

“They welcome regulation,” he said. “They just didn’t welcome oppressive regulation.”

Staff writer Andrew Barksdale can be reached at barksdalea@fayobserver.com or 486-3565.

Published: 12:23 AM, Wed Jul 21, 2010
By Andrew Barksdale
Staff writer

Greensboro ABC manager elected to association post (Greensboro News and Record)

Wednesday, July 21st, 2010

Greensboro ABC manager elected to association post (Greensboro News and Record)

Katie Alley, the general manager of Greensboro’s ABC system, has been tapped as president elect of the North Carolina Association of ABC Boards, a group that represents the more than 160 local liquor boards across the state.

Alley faces scrutiny following a report released by the state Alcoholic Beverage Control Commission that suggested she may have improperly taken gifts, hotel rooms and other favors from liquor industry representatives.

The Greensboro ABC Board is scheduled to meet Thursday morning to review the report and possible decide what action, if any, to take against Alley.

Alley has been secretary treasurer of the Raleigh-based association, which provides training to local boards and represents their interests before the North Carolina General Assembly. Alley’s lawyer said Wednesday that she had accepted the post of president elect during a banquet Tuesday night. The association’s annual meeting was held in Myrtle Beach, South Carolina.

Local liquor boards are independent units of local government, appointed by either county commissioners or city councils. They operate what amount to monopolies on liquor distribution in the territories that they cover.

Wednesday, July 21, 2010

By Mark Binker
Staff Writer

Perdue open to regulated video poker (News and Observer)

Wednesday, July 21st, 2010

Perdue open to regulated video poker (News and Observer)

Gov. Bev Perdue, who signed into law Tuesday a ban on video sweepstakes games, said Wednesday she is open to regulating and legalizing the games.

Perdue made her comments after a signing ceremony for a different bill Wednesday. She signed the sweepstakes ban in private. On Wednesday, she said one of her concerns about the sweepstakes industry was the unchecked proliferation of parlors that allowed for profiteering.

“I think if you have video sweepstakes, whether it is video poker or video machines in general, we really do need to have some kind of concert organized, unified system of regulation where they are under a standard set of rules and regulations where we can be sure that nobody is profiteering from it,” Perdue said.

A spokeswoman later clarified that Perdue was open to ideas on how to regulate the industry, but was not actively pushing to legalize it.

That’s point of view opens a big gulf between Perdue and the lawmakers who voted for the ban. Many of them, particularly in the Senate, spoke of the industry as an evil that preys on the poor.

The industry says it could raise at least half a billion a year in revenue. Just before Perdue signed the bill, an industry group pleaded with Perdue to veto it.

Submitted by bniolet on 2010-07-21 11:57

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