By Maggie Lee
Georgia Online News Service
ATLANTA – The Georgia House has overwhelmingly approved a bill to create a statewide sales tax hike of 1 cent to fund transport projects throughout the state.
The bill itself passed 149-18. A second resolution, which would trigger the required referendum on the tax, passed 151-15.
Bill author Vance Smith (R-Pine Mountain) told the House that it is time to fund transport in a “bigger and bolder” way than simply the fuel sales tax plus federal funds.
“We have crippled ourselves by not providing that ground transportation in our state,” Smith said, adding that the lack makes Charlotte and Nashville more attractive for business.
Another supporter, Calvin Smyre (D-Columbus) also said it’s good for business.
“Highways don’t guarantee economic development, but I can guarantee without highways you won’t have economic development,” he opined.
The statewide sales tax would go into a new Transportation Trust Fund.
It would have 23 years to spend either $25 billion or whatever it collects in its first 10 years. It must spend the smaller amount.
But, based on the language of the bill, most of the money will go for capital construction programs that must already be funded or contractually committed within 11 years of July 2011.
The only other choice for the spend is operation and maintenance costs for certain projects listed in the bill by 2032. Some of the projects are so-called flex fund grants for local transportation projects for 33 communities statewide. Those grants, for communities of 15,000 people or less, could total up to $1,000 per person on any project the community wants, from roads to rail. The other choice is planning or maintenance funds on yet-unbuilt mass transit projects mostly in metro Atlanta.
The 33 statewide projects or the transit projects would start in the order that they are permitted. Per Smith, the metro area projects were selected by the Atlanta Regional Commission with the input of the 10 area county commissioners. The projects in the rest of the state were chosen to ensure continuity of major state roads and upgrades for port areas.
The House vote came in the afternoon, after the Rules Committee scrambled to add some last minute Democratic amendments in the morning.
The first amendment also specifies that the so-called “fourth cent” of the 4 percent statewide fuel tax must be earmarked for any transport purpose – that could include roads, bridges or mass transit. Previously the fourth cent went to Georgia’s general fund, while the other three went to transport. The fourth cent is worth about $180 million annually, according to the amendment sponsor, Rep. DuBose Porter (D-Dublin). Cosponsoring the amendments were Reps Smyre and Smith.
It’s that fourth cent that makes one bill opponent so angry.
“For the first time we’re going to take a user fee to pave and widen roads and fix bridges … it’s now going to be a subsidy for public transit if you pass this amendment,” said Rep. Steve Davis (R-McDonough). He called the amendment a subsidy on the 99 percent of people who drive for the one-half percent of people who take the train.
That amendment is actually attached to House Resolution 206, the companion to the Act, which provides for the referendum during the 2010 midterm elections.
As for the actual bill, a new amendment allows the House and Senate minority party leaders to choose the two members of their own party to join the Fund Oversight Committee. The governor appoints three Committee Members and the lieutenant governor and House speaker each choose four, though one of each of the latter two will come on the advice of the minority party.
The second amendment only specifies that the Fund would work with an “authority” – the state-designated recipient of federal transport funds. Right now, that’s the Georgia Department of Transportation. But the Senate is soon set to consider a bill, preferred by it’s mover, Gov. Sonny Perdue, that would reorganize state transportation funding, and create a new State Transportation Authority to take over most GDOT functions.
Both Smyre and Porter distanced their bill from the governor’s bill, emphasizing that theirs does not change state transport governance.
Smith needs Democratic support because the whole plan — the so-called Georgia 2020 Transportation Act — requires a change to the state constitution and thus, supermajority support for a statewide referendum.
Maggie Lee specializes in quality of life topics, Atlanta’s international communities and general reporting. She covers Georgia economic development and the Chinese community as a stringer for China Daily and chronicles life in Georgia’s most diverse county for the DeKalb Champion.