GUEST COLUMN

No reason now to deny MARTA its sales tax revenue

Tuesday, March 17, 2009

Historical events long past are always subject to revision, and none has been revised more than the reason why MARTA, for more than three decades, has had its hands tied when it comes to using sales tax revenues.

Since MARTA’s inception, huge chunks of sales tax revenues have been set aside for capital expansion only. Today, the common wisdom is that capital funds were set aside by the Legislature to ensure MARTA’s long-term growth and expansion. But that wasn’t the only reason.

As mayor of Atlanta in 1971, I and many others wanted a system of free ridership on MARTA. Our issue was mobility — and we wanted it for as many people as desired it.

But there were powerful forces in the Legislature — most notably then-Lt. Gov. Lester Maddox — who wanted anything but a free transit system. Lt. Gov. Maddox thought it ought to cost at least 25 cents to ride MARTA. If ridership was free, he believed, the system would be overrun with “winos,” as the homeless were called.

Maddox had a way to ensure there would be no free ride on MARTA: Simply deny the system a huge chunk of its sales tax revenues for operations. In a 1971 amendment to the Georgia Sales Tax Law authorizing a tax levy for transit in metro Atlanta, Maddox insisted that half the sales tax revenue be set aside for capital expenses, forcing MARTA to make up the operations shortfall at the fare box.

We settled in those days on an initial fare of 15 cents, where it remained for seven years. Over the years the fare has risen to $1.75. And it could go higher if MARTA is unable to tap into capital funds. The other alternative is for MARTA to drastically reduce service.

The General Assembly has a chance to fix the politics of 38 years ago. A measure is before the Legislature that would allow MARTA to use capital funds for operations. The state Senate (where Maddox worked his magic three decades ago) has already approved the measure.

It’s time to unshackle MARTA’s finances and let it exercise judgment over sales tax revenue to fund maintenance and operations. It won’t solve all their problems, but it’ll give them room to close a $60 million budget shortfall this year and a projected $90 million shortfall next year.

Inevitably, the cost of transit is going to have to be shared metrowide, not just by Fulton, DeKalb and the city of Atlanta. After all, the entire region has benefited from the growth that mass transit has brought, and the region should contribute.

But the Legislature has it within its power to help by giving MARTA the freedom to use its funding as it sees fit. And don’t worry, Lester Maddox fans: Riders will still have to pay. But hopefully not so much that transit in our region goes away.

• Sam Massell is president of the Buckhead Coalition and a former mayor of Atlanta.




Kudzu.com: Mosquitos are breeding.  Ready for the bites?
Today's deal from DealSwarm.com
AJC Breaking News Updates