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Posts Tagged ‘Equity Formula’

State Budget Discussions and Equity 6.28.10

Monday, June 28th, 2010

The House and Senate came to an agreement on the budget over the weekend (see article link below). While the final language has not yet been released, I am hearing that the Mobility Fund was included in the budget, but without the supplemental Powell Bill and Interstate Maintenance money. While just rumor at this point, I will send you the final language when released later today or tomorrow.

The rumored plan is to vote on the bill Tuesday and Wednesday and send to the Governor for her signature before the end of the fiscal year.

Discussions of changing the equity formula became a part of the budget negotiations. Senator Nesbitt of Buncombe County advocated that they include an exemption to the state’s transportation equity formula in the budget for the Appalachian Development Highway System federal monies. (See how the exemption would affect your highway division here.)  The monies date back to 1965 when Congress designated the federal funds to be spent on the Appalachian Highway System. But, because the monies are required by state law to flow through the equity formula, they are, in effect, spent across the State. Here is an excerpt from an Asheville Citizen Times article on the issue:
“More than $30 million a year is earmarked for the highway system…but the money is going unused because of the way state and federal legislators hand it out. North Carolina law doesn’t allow spending in a region to tilt the formula for spreading road money equitably across the state. So for every dollar that highways like U.S. 74 receive in Appalachian Development Highway System funds, the far-western region has to give up 96 cents in other road funding. That’s because of how the General Assembly wrote the formula and because Congress doesn’t provide extra money for the mountain highways; it simply sets aside for them a slice of the money North Carolina would normally get to build all state highways.” (Asheville Citizen Times, 9/29/09)

The Appalachian Development Highway System monies, if exempted from the State Transportation Equity Formula, will be spent only in Graham, Cherokee, and Clay counties in highway division 14.  The total new monies that will be taken from all the other highway divisions and spent in division 14 over a seven year period represent a 75% increase in federal construction highway dollars for division 14.  (according to the table above provided by NCDOT)

Additionally, Rep. Hugh Holliman of Davidson County advocated that the first phase of the Yadkin River Bridge project be exempted from the formula. (Phase I is the actual bridge, while Phase II is to widen I-85 north of the bridge included as the first Mobility Fund project.)

There are rumors that the Appalachian Development Highway System funds were exempted from the equity formula in the budget bill. I am told there was much discussion around the issue, and the argument was successfully made that the urban areas had the loop money exempted, so this was in balance to that. I have not heard at this point whether any other changes were made to the equity formula.

As many of you have pointed out to me, the argument that the Appalachian Development Highway System funds were directed by Congress to be spent on the Appalachian Highway, the Surface Transportation Program/Direct Attributable (STP/STP-DA) federal monies are directed by Congress to be spent by metropolitan planning areas containing urbanized areas over 200,000 population. But, like the Appalachian Development Highway System monies, the STP-DA monies flow through the State’s transportation equity formula, and are therefore spent statewide. The metropolitan planning areas containing urbanized areas over 200,00 include Asheville, Fayetteville, Greensboro, Charlotte, Raleigh, Durham, and Winston-Salem (and their MPO member cities, for example, in Raleigh this includes the Capital Area MPO with cities such as Franklinton and Creedmoor).

Democratic Leaders Reach Tentative Agreement On State Budget
http://www.digtriad.com/news/local/article.aspx?storyid=144333&catid=57

Assembly Has Roads On Agenda (Charlotte Business Journal)

Friday, June 11th, 2010

Assembly Has Roads On Agenda (Charlotte Business Journal)

Click here for link to PDF:
http://ncmetromayors.com/files/2010/06/MobilityFundEditorial6-11-10.pdf

Local officials please mobility fund in N.C. budget draft (Durham Herald Sun)

Monday, June 7th, 2010

Local officials please mobility fund in N.C. budget draft (Durham Herald Sun)

DURHAM — Local officials are pleased that N.C. House members included in their draft of the state’s fiscal 2010-11 budget a version of the “mobility fund” Gov. Beverly Perdue wants to set up to underwrite major road and transit projects.

House members would seed the fund with $160 million over the coming four fiscal years, drawing it in part from an existing and so-far untapped subsidy for toll-road construction.

As Perdue asked, they’ve assigned first dibs on the money to the planned replacement of Interstate 85’s Yadkin River bridge at the border of Rowan and Davidson counties. But the House didn’t go along with Perdue’s request for vehicle-fee increases to help pay for it.

Local officials were happy because the budget bill includes a provision that says that once the N.C. Department of Transportation finishes the Yadkin bridge, major transit projects that would qualify for state construction subsidies should receive preferential consideration for a share of the fund.

Especially with that stipulation, “it’s encouraging it’s back in,” said Mayor Bill Bell, who said he has asked city administrators to pass the word to Durham’s legislative delegation that he’d like to see the mobility fund receive “strong consideration” as the budget moves to a House/Senate conference.

Bell, who chairs the N.C. Metropolitan Mayors Coalition, added that he and other city-government leaders around the state also want legislators to get behind Perdue’s request for mobility-fund earmarks for repairs to interstates and in-town roads.

Lobbying is necessary because the N.C. Senate’s initial draft of the budget didn’t include the mobility fund. Bell’s group and business interests have been helping Perdue and DOT push for the measure.

Triangle Transit General Manager David King joined Bell in praising the House decision.

“It’s a great thing, but not just for transit,” King said, noting that the key feature of Perdue’s initiative is that the new fund would bypass the “equity formula” that has divvied up road money among urban and rural regions since the late 1980s.

Critics of the formula say it has shortchanged congestion-plagued urban areas, while making it all but impossible for DOT to finance major, high-cost initiatives like the Yadkin bridge replacement in rural areas without shutting down other transportation projects in them for several years.

“The equity formula was a very noble attempt to make sure everybody felt they were getting their fair share,” King said. “But there are roads and projects that supercede everything.”

The Yadkin bridge — a key link on the highway that connects Washington, D.C., with Atlanta — had become the poster child for the equity formula’s deficiencies, he said.

It’s “obviously a high-priority project,” King said. “The inability to do that within the equity formula is just jarring in this day and age.”

But the House’s move didn’t come without controversy. Supporters of the mobility fund had to fend off an amendment by state Rep. Ric Killian, R-Mecklenburg, that would have shut it down after completion of the Yadkin bridge or on July 1, 2014, whichever came first.

The Killian amendment fell by a vote of 81-34 against. All but two of the Democrats who voted wanted to keep the fund going post-Yadkin. Republicans were split. Most lined up behind Killian, but House Minority Leader Paul Stam, D-Wake, and 17 other GOP members joined Democrats in voting against establishing a sunset date for the fund.

By Ray Gronberg

gronberg@heraldsun.com; 419-6648

House budget would start Perdue’s Mobility Fund with $70M (News and Observer)

Friday, June 4th, 2010

House budget would start Perdue’s Mobility Fund with $70M (News and Observer)

The 2011 budget approved by the House this morning provides $70 million to start up the N.C. Mobility Fund that Gov. Bev Perdue wants for some big statewide transportation projects that, with one exception, have not been named.

This will be one of the areas for negotiation with the Senate, which did not include the Mobility Fund in its budget proposal.

It isn’t new money, as Perdue had proposed (she wanted $74.6 million in DMV fee hikes). It’s all diverted from the Highway Trust Fund via two routes:

* a $31 million slice of the yearly transfer from the Highway Trust Fund to the General Fund. The legislature has been reducing this transfer by chipping away chunks to cover revenue gaps on turnpike projects — the expected shortfall in toll collections needed to cover the full project costs.

The House budget leaves $40 million remaining in this shift to the general fund. In FY 2012 it proposes to reduce that further to $26 million by reserving an additional $14 million a year for the Mobility Fund.

* $39 million in gap funding unspent by the N.C. Turnpike Authority — it had been
earmarked to help pay for two toll projects that weren’t ready to get
started this year.

Why not simply leave this money in the good old Highway Trust Fund? Because it would be subject to the equity formula there, which distributes the cash according to geography and population numbers. The Mobility Fund is not subject to the equity formula, so it’s OK to spend a lot of money in one county without robbing other projects nearby.

Legislators don’t appear ready to change or kill the equity formula, but maybe they’re ready to acknowledge that it has prevented the state from addressing some of its biggest transportation needs.

How will the money be spent? Every time somebody talks about the Mobility Fund, starting with Perdue’s first mention (here’s the official version from her NCDOT) and continuing through variations in the House, there’s a different list of priorities.

Everybody agrees that the first share will go for widening Interstate 85 near the Yadkin River bridge (which has languished because of equity formula dynamics). There have been proposals to earmark some of the loot for interstate maintenance, for city streets and other needs.

The new House budget prefers an open-ended approach. After I-85 is fixed at the Yadkin bridge, it says, there would be lots of local and statewide consulting involved in selecting transportation projects “of statewide and regional significance that relieve congestion and enhance mobility across all modes of transportation.”

In other words, almost anything could qualify for this modest pot of money. It’ll be good to fix that stretch of I-85. After that, it’s hard to get excited.

Submitted by BruceSiceloff on 06/04/2010 – 14:43

Mobility, yes (News and Observer)

Tuesday, June 1st, 2010

Mobility, yes (News and Observer)

One of the biggest problems in North Carolina’s highway system is on the road to a solution. But there’s another big problem right on its doorstep, and an even larger one lurking outside.

The first problem is the grossly inadequate Yadkin River bridge on Interstate 85 in Davidson and Rowan counties. The bridge’s old, narrow roadways have exasperated engineers and Greensboro-to-Charlotte motorists for years. This fall, work gets under way on a $136 million replacement, plus related upgrades in the immediate area.

The other big problem is a stretch of interstate north of the bridge. It needs widening from four lanes to eight. That $100 million-plus project isn’t optional, because it makes zero sense to eliminate the bridge bottleneck but neglect to widen the road. However, as the DOT candidly states, “The department currently does not have the money available to fund phase two.”

That’s largely because of that third problem. North Carolina’s longstanding formula for spreading highway funds around the state, balancing east and west, rural and urban, etc., simply doesn’t allow for a painful but necessary concentration on megaprojects such as the Yadkin bridge – even though it’s key to the statewide road system and even to north-south travel from Virginia to Atlanta.

When it comes to really big projects, there simply has to be a way to git ‘er done.

Here, Gov. Beverly Perdue deserves credit. She saw a problem and tried to fix it.

First, her administration made a serious bid for federal stimulus funds intended for big projects. But the feds split that pie into too many pieces to help the Yadkin bridge much. Then she took a new tack, working out a funding combination that, while it regrettably takes on debt, got the new bridge going.

Second, in her budget for next year Perdue asked the General Assembly to create a Mobility Fund, essentially a pot of money focused on high-priority, hard-to-fund projects such as its first intended target, the lane widening north of the bridge.

However the state Senate, in its version of the budget, did not go along for the Mobility ride. Senators balked at raising money from motorists and taxpayers – the fund would involve some fee hikes – and Perdue stepped on the toes of the N.C. Automobile Dealers Association too, rarely the route to legislative success.

Now the House is working on its budget, and Perdue hasn’t given up. She’s enlisted mayors on behalf of the special fund. Presumably she’s open to compromise on how to fill up the money pot, trying to make the Mobility Fund palatable to both houses. But everyone involved must realize that worthwhile projects are worth raising money for – cutting unspecified “waste” goes only so far.

Here’s hoping Perdue succeeds. Sure, the long-term solution is a more forward-looking distribution of all the highway money (including transit projects), but until that blessed day, a special-duty fund meets a real need in a realistic way.
Published Sun, May 30, 2010 02:00 AM
Modified Sun, May 30, 2010 06:00 AM

Editorial: Fix the current highway fund (Greensboro News and Record)

Tuesday, June 1st, 2010

Editorial: Fix the current highway fund (Greensboro News and Record)

Gov. Bev Perdue’s administration keeps working on new ideas to meet state transportation needs.

Some are better than others.

The latest proposal calls for creating a Mobility Fund, a pool of money to pay for big maintenance projects — such as replacing the Yadkin River bridges on I-85 — and even city road work. It would tap some of the revenue currently diverted from the state’s Highway Trust Fund to the General Fund and raise some taxes, including the motor vehicle registration fee.

This is a poor economic environment for raising taxes, although even fiscal conservatives must acknowledge the long-term problem with relying so heavily on the motor-fuels tax for transportation needs. People keep driving more fuel-efficient vehicles and paying less tax, while highway construction and maintenance costs are not decreasing.

The bigger question, though, is why create a Mobility Fund when the state already has a Highway Trust Fund? The easy answer is that the Highway Trust Fund isn’t adequately meeting the state’s transportation needs, but that should be addressed by correcting its problems, not coming up with a new entity that supposedly would exist within the Highway Trust Fund but operate separately.

The state can’t deal with its top maintenance priority, the Yadkin River bridges, because of the politically motivated Equity Formula that governs the spending of Highway Trust Fund dollars. Money has to be doled out evenly across the state, no matter where it’s needed most. That doesn’t allow for an allocation of $300 million in one location, even on a major artery like I-85. Perdue has had to think creatively to get started on the Yadkin River project, borrowing against future federal appropriations for the first phase.

It would be better to use the Highway Trust Fund as the state’s major transportation funding mechanism but give the Board of Transportation authority to target funds to the most urgent projects, regardless of location. The legislature should put politics aside to make that happen — an idea travelers could support.

Thursday, May 27, 2010 (Updated 3:00 am)

Editorial: Mobility Fund still has life (Salisbury Post)

Tuesday, June 1st, 2010

Editorial: Mobility Fund still has life (Salisbury Post)

Mayors from around the state flanked Gov. Beverly Perdue last week as she urged state House members to help create the Mobility Fund to pay for major road projects, starting with the I-85 bridge over the Yadkin Bridge.

Missing were the mayors of Salisbury and Lexington, the cities closest to the bridge. But don’t read that as a non-endorsement. Salisbury Mayor Susan Kluttz and Lexington Mayor John T. Walser say they’re all for a new fund to tackle highway projects like the Yadkin River bridge that have statewide significance. How to raise the money for the fund is another matter — one they’re happy to leave to the General Assembly to figure out. Neither has taken a stand on the increased vehicle fees the governor proposed for the fund.

They may not need to. The governor and the mayors kept working on House members. Late in the week, a posting on the N.C. Metro Mayors Association website said “word is spreading” that the House budget will include Mobility Fund (the Senate’s did not), but without the DMV fee increases. That improves the fund’s chances of survival. But where will the money come from?

Because of that persistent question, legislators have been cool to the Mobility Fund, but it’s not dead yet. Some have said the Mobility Fund would be unnecessary if the Department of Transportation would stop tapping the road-building Highway Trust Fund to pump money into the General Fund for other purposes. Until a few years ago, the transfer was $172 million a year.

That is indeed part of Perdue’s solution. The legislature voted in 2007 to phase out the transfer by 2013. Perdue wants $22 million of the “phase-out” to go to the Mobility Fund in the coming year. That’s a start, but still far short of the more than $90 million Perdue wanted the fund to start with.

The other weakness in North Carolina transportation funding is the equity formula used to divvy up highway money. Yes, that process needs to change, but projects like the Yadkin River bridge go beyond the regional scope of the equity formula. The bridge is not a local project; it affects a major East Coast traffic corridor — much as Interstate 95 does. Virginia wants to fund I-95 improvements with a toll rather than its existing funding mechanisms. Perdue appears to be turning over every possible funding rock in search of ways to avoid putting a toll on the I-85 bridge.

Keep looking, governor. The mayors and the people they represent are behind your Mobility Fund. They don’t know how on earth you’ll put it together, but they are behind you.

Prospect for new Yadkin River bridge looks promising (Davidson County Dispatch)

Friday, April 23rd, 2010

Prospect for new Yadkin River bridge looks promising (Davidson County Dispatch)

North Carolina’s transportation heavyweights gathered Thursday at Davidson County Community College to talk about highways, infrastructure and more.

Members of the state’s Logistics Task Force heard from a representative of FedEx who outlined the company’s new state-of-the-art facility at Piedmont Triad International Airport and listened as plans for urban bypasses around Greensboro and Winston-Salem were detailed.

But the most enthusiastically discussed portion of the meeting pertained to the long-anticipated replacement of the Interstate 85 bridge spanning the Yadkin River. Pat Ivey, an engineer with the N.C. Department of Transportation’s District 9, which includes Davidson and Rowan counties, said work on the bridge should start before the year is out.

“Probably later this fall you’ll see construction beginning for that project,” he told the crowd gathered in DCCC’s Conference Center.

Ivey said that while the state received only $10 million of a requested $300 million from federal stimulus funds for the project, it was decided the project was important enough to ascertain funding elsewhere. “We had a Plan B,” he said.

That fallback plan, Ivey said, was to fund the bridge replacement through federal GARVEE bonds, which are essentially low-interest federal loans. Ivey said $150 million of the approximately $350 million project is being provided by GARVEE bonds. Another $20 million has been allocated for the work through Division 9 funding.

Ivey said the work is so close to getting kicked into gear that state transportation officials were set to open bids for the work later Thursday. He said securing environmental permits and clearing assorted other governmental hurdles will take a few months, but said he was confident the work is finally about to commence.

Ivey noted the $180 million appropriated for the project will pay for an eight-lane bridge over the Yadkin, as well as a new bridge for U.S. Highway 29/70, which crosses the river at the same site. The work will complete the project from the Long Ferry Road exchange in Rowan County north to the interstate’s intersection with N.C. Highway 150 in Davidson County.

But the funding doesn’t include another six miles of the work, from N.C. Highway 150 north to the Exit 88 exchange near the Davidson County Airport.

“We’re continuing to look for funding,” Ivey said. “Hopefully, it’ll become available soon.”

It may become available sooner than most people realize, said Gene Conti, the state’s secretary of transportation, who addressed the crowd after Ivey spoke.

Conti admitted that securing funding for the second half of the project was “a little more challenging,” but said the cash may be secured through Gov. Bev Perdue’s proposed budget, which was released Wednesday. Conti said the budget includes a “mobility fund” whereby legislators can vote to transfer cash from other funds, including the state’s general fund, to pay for the Yadkin River project.

“We need the General Assembly’s support, obviously, to support this,” Conti said of the transfer of funds.

But he said he fully supports such transfers, and said he believes legislators will agree.

“The first cash flow, in our minds, should go toward funding the Yadkin project,” Conti said. “We want to emphasize projects that will give the maximum return for the people.”

Conti’s words were so enthusiastically received that those attending Thursday’s meeting applauded him.

He said it wasn’t just highway work that will be a part of the project. Conti said about $4 million of the project will go for work to the railroad tracks near the Yadkin. He said the railroad bridge won’t be replaced, but the tracks leading to it will be straightened, in the process increasing the speed limit for trains from 40 mph to 60 mph in the area.

By almost anyone’s assessment the Interstate 85 bridge is a hazardous one that should have been replaced years ago. The 880-foot bridge was built in 1955. It has no shoulders to pull over, narrow lanes and was designed to carry a much smaller capacity than it does now. An estimated 60,000 to 70,000 vehicles cross the bridge daily on what Conti called a “critical artery between Richmond and Atlanta.”

Replacement of the bridge was planned for 2004 before efforts of historical preservationists — the bridge is near the site where a Civil War battle was fought — delayed the project. Transportation officials said the cost has doubled since then. They said that had the work been allowed to proceed as was initially planned, the new bridges would by now be completed.

The aim of the Logistics Task Force (headed by Lt. Gov. Walter Dalton, who also attended Thursday’s meeting) is to ensure the state has the necessary transportation foundation to remain competitive in the global economy. Task force members heard Thursday from transportation experts in the 12-county Piedmont Triad region. After leaving DCCC, they drove to Piedmont Triad International Airport for a tour of the FedEx hub that opened there last year.

Don Kirkman, president of the 12-county Piedmont Triad Partnership, was one of the first to speak at Thursday’s meeting. He told attendees the region is just beginning to recover from the recession, but said the Piedmont is geared for big things.

“We’d like to think we could accommodate virtually any economic development except that which requires deep water,” Kirkman said, his comment greeted by a round of chuckles.

David Congdon, president of Old Dominion Freight Line in Thomasville, reminded task force members that different regions of the state shouldn’t consider themselves in competition with one another.

“What is good for the Piedmont Triad region is good for all of North Carolina,” he said. “What is good for the Charlotte region is good for all of North Carolina. We will all benefit.”

Steve Huffman can be reached at 249-3981, ext. 217, or steve.huffman@the-dispatch.com.
BY STEVE HUFFMAN
The Dispatch

Published: Thursday, April 22, 2010 at 4:53 p.m.

New plan surfaces for I-85 bridge (Salisbury Post)

Friday, April 23rd, 2010

New plan surfaces for I-85 bridge (Salisbury Post)

In her proposed budget for the next fiscal year, Gov. Bev Perdue provides a new way to fund the widening of Interstate 85 around the Yadkin River Bridge.

Perdue’s proposed $19.1 billion budget allocates $94.6 million for the creation of a new transportation fund.

The recurring N.C. Mobility Fund would be used “for multi-modal transportation projects of statewide significance that are linked to statewide economic goals.”

The 2008 General Assembly decided to reduce the annual distribution of money from the Highway Trust Fund to the General Fund. Perdue wants to use $22 million from next year’s reduction to help establish the N.C. Mobility Fund.

About $17 million for the fund would come from a 25 percent increase in the fee for getting copies of drivers license records.

Automobile and light truck registration fees also would increase by 25 percent, producing an additional $48.9 million in revenue.

Hikes in fees for trucks used in interstate commerce and miscellaneous registration fees would raise $3.1 million and $3.6 million respectively.

According to Greer Beaty, DOT communications director, the first project paid for with the fund would be the widening of a 6.8-mile section of I-85 on both sides of the Yadkin River Bridge.

Replacement of the bridge itself will be paid for with $10 million from a federal TIGER grant, $20 million in DOT Division 9 Transportation Improvement Program funding, and about $150 million in GARVEE bonds.

Beaty said that the Yadkin River Bridge project brought the issue of transportation funding to the forefront. Currently, the state distributes road project money to each DOT district through an equity formula. If the formula had been used to pay for the entire I-85 corridor improvement project, it would have taken up the whole district’s funding for about a decade.

“When you have large projects of state, regional or national significance that are very expensive, the current equity formula really doesn’t have a tool to fund those projects without taking a lot of resources away from other communities that need them,” Beaty said.

Interstate 85 is crucial statewide and locally for business and economic development, Beaty said. Road projects of similar significance across the state also would be paid for through the new fund.

“It will give us a tool to really look at projects that address critical congestion or bottleneck areas,” Beaty said. “The N.C. Mobility Fund is really a way to look at projects like this and have a solution moving forward.”

At least one local legislator, however, doesn’t like the idea.

N.C. Sen. Andrew Brock, a Republican who represents Rowan and Davie counties, said he was thankful for any money put toward the I-85 corridor improvement project.

“Our transportation district is severely limited because of the equity formula — or, as I call it, the inequity formula,” Brock said. “We’re blessed to have the interstate system, but it hinders us because we don’t receive funding the way we should because of it.”

Brock said he didn’t like the idea of simply creating another funding source for these kinds of projects, though.

“We would be better served not by creating another slush fund for the governor to hand out money,” he said, “but by creating a more equitable system to send out state money.”
By Karissa Minn
Friday, April 23, 2010
kminn@salisburypost.com

House, Senate pass transportation bill (The Atlanta Journal-Constitution)

Friday, April 23rd, 2010

House, Senate pass transportation bill (The Atlanta Journal-Constitution)

Breaking a legislative traffic jam that has endured for more than three years, the Georgia General Assembly on Wednesday voted to allow referendums throughout the state on transportation funding.

Taking to the well for the first time this session, Speaker David Ralston in a rousing speech led the Georgia House to pass the bill, HB 277, by a vote of 141-29. The Senate passed it 43-8 shortly afterward.

The bill would divide the state into 12 regions. A “roundtable” of local elected officials in each region, working with an appointee of the governor, would draw up a list of projects for the region. The region could then submit the list to its voters for their approval in a referendum, along with a 1 percent sales tax to fund them. No county could opt out of a region’s tax, but a roundtable could decline to hold a referendum in the region.

If the bill becomes law, it also will probably ease the draconian cuts MARTA was facing, though it was unclear Wednesday night by exactly how much. It lifts, for three years, a restriction on how the transit agency can use its revenues from sales taxes, freeing up several million dollars for operations.

The strong margins of support in both houses delighted supporters.

“I feel exhausted. I feel ecstatic. I feel so thankful for the people who worked so hard,” said Sam Williams, president of the Metro Atlanta Chamber, one of the bill’s key backers. That includes Atlanta Mayor Kasim Reed, Williams said, who was instrumental in helping deliver the House. “We were afraid we were going to lose the House this afternoon,” Williams said.

Reed was at the Capitol on Wednesday, and after passage, he said it was not yet law and there was still work to be done to get a good referendum passed. But he said it would be a massive boost for the Atlanta region’s transportation. Projects have yet to be chosen, but would Atlanta get the Beltline? “No question,” he said.

The bill now goes to the desk of Gov. Sonny Perdue, who first proposed the legislation earlier this year, giving it critical momentum. Transportation Planning Director Todd Long, who reports to Perdue, said the governor supports Wednesday’s bill. A spokesman for Perdue, Bert Brantley, said Perdue would have to review the final language, but he supported the concept and had worked closely on the compromise.

Sen. Jeff Mullis (R-Chickamauga), who worked on the issue for years, said it wasn’t perfect, but could be refined.

Indeed, not all was perfect with the bill. If a region approves its tax, it still won’t get money for about the next three years. But the money will be significant: The Atlanta region’s tax could raise about $750 million to $790 million per year. It would sunset after 10 years, and go up for a vote again.

In his speech, Ralston, brandishing his MARTA Breeze card, hit back at criticism that the bill does not do enough for MARTA or mass transit. The new tax could not be spent on operations for the current MARTA system, or on raises for MARTA employees. But it could be spent on operations for new MARTA projects.

“I have heard this talk about two Georgias to the point that I’m sick of it,” Ralston said. “We are one state. And you know what, the members of that committee accepted that challenge” to spread the benefits of the bill.

DuBose Porter, the House minority leader, said that “this is basically a Band-Aid for MARTA, if that.”

House Transportation Committee Chairman Jay Roberts then took to the well and replied, “Are you telling me that you want to keep the wound open?”

A critical moment apparently came when Perdue backed down on the issue of whether a region could opt out of the tax. The final compromise: Yes, it can, but the region will lose out on some new state benefits, including a bit more money for small local road projects. And it wouldn’t be able to try again for a vote for two years.

In a show of cooperation, Lt. Gov Casey Cagle, who heads the Senate, and Ralston praised Perdue in a joint statement and said they made transportation a priority and looked forward to the referendum.

Staff writer Ernie Suggs contributed to this article.
By Ariel Hart

215 north Dawson Street • raleigh, nc 27603 • phone 919.715.7895 •  fax 919.301.1098