Atlanta region: $7B transportation funding cuts

The plan comprises the region’s regular long-range transportation budget, funded by federal, state, local and private transportation spending. It is not related to the project list that might be funded by a sales tax referendum next year.

The latest 30-year plan is the first update since 2007 and reflects tighter funding at every level. The ARC is cutting the list by $7 billion, to $60 billion, axing projects from roads to mass transit from one end of the 18-county region to the other. Hundreds of projects have been removed from plan.  That includes many postponed as “aspirations” that could be restored if new funding comes along. Others have been removed because they were completed, but are not being replaced in the pipeline by new projects.

One project, which would add optional toll lanes alongside I-75 and I-575 in Cobb and Cherokee counties, dropped $2 billion in cost as planners realized it was too expensive, said John Orr, an ARC planner. The Department of Transportation scaled it back, cutting out a component that would carry only tractor-trailer trucks.

ARC officials pointed out the $60 billion worth of projects that did make it into the plan include funding for high-occupancy toll lanes on I-75 and I-575, relocating Ga. 92, and even additional projects, such as an east-west streetcar line in Midtown perhaps along North Ave.

The plan gives preference to high-occupancy toll lanes over HOV lanes, as well as a connected regional transit plan.  However, when it comes to paying for them, “We still have a funding shortfall,” said Tad Leithead, chairman of the ARC. “We do not have enough money.”  Leithead estimated that to serve its traveling needs the region actually needs to add another $60 billion to $70 billion worth of projects into the 30-year list, not take projects out.

Leithead points to the gaps as a reason to support next year’s sales tax referendum.

The plan to be approved Wednesday does not include money that could be expected from the 1 percent sales tax voters might approve at the ballot box next year, because ARC does not know yet whether the tax will pass.

If it does, the referendum could raise $7 billion over 10 years.  That money could be spent on mass transit, whereas money currently raised by the state gas tax can only be spent on roads and bridges.

The federal government requires periodic updates of the 30-year plan. The new cuts are on top of $4 billion in cuts made in the 2007 update.

On top of all the new cuts, it is unclear whether Congress will keep transportation funding at current levels. A proposal by House Republicans would make deep funding cuts; if that or other budget-cutting measures passed, ARC would have to come back and cut more.  In putting together the new list, ARC had to make a best guess talking with federal officials, said Jane Hayse, transportation planning chief at ARC.

The plan also assumes that a restriction on how MARTA spends its revenue will be lifted permanently, Hayse said. Right now the Legislature has suspended it temporarily.

Transportation funding has been withering for years. The federal deep pocket for transportation funding is the gas tax, which is charged as 18.4 cents per gallon, not cents per dollar, and so does not rise with inflation. Congress has not raised it since 1993.  Part of the state gas tax faces the same issue, being charged as cents per gallon, not cents per dollar.

In addition, people are driving cars with better mileage, meaning they pay less gas tax.

The ARC board is made up of local elected officials and citizens from across the region.  They also are the officials advocating for their own local projects.

The city of Atlanta would love to have seen the north-south leg of the Peachtree Streetcar stay funded, said Tom Weyandt, an adviser to Atlanta Mayor Kasim Reed, who sits on the ARC board. "Obviously if funding came through it could move up tomorrow," Weyandt said. "You just have to deal with the reality."

“Aspirations”

These projects or pieces of projects have been tagged for funding within 30 years. But if the ARC board approves a new plan Wednesday, they will become “aspirations,” waiting for future funding.

Source: Atlanta Regional Commission