GDOT Reveals Turnaround Plan Revealed
September 29, 2008
On Friday, September 26, the GDOT Board met in a special called meeting to address solutions to the $456 million shortfall that was reported in the financial audit the week prior. Below are some links regarding the GDOT staff recommendations to the Board.
A couple of items of note as you read the presentation.
1. You will notice that GDOT staff is working to fill a gap of about $190 million. This figure comes from a deficit amount of about $175 million coupled with a projected shortfall in motor fuel tax collections of about $15 million. The reported deficit includes $300 million in general obligation bonds issued in FY 2009.
2. There are Phase I and Phase II recommendations by the staff. None of the staff recommendations have been approved by the Board. Another special called Board meeting will take place the morning of October 7 at 10:00 to address the recommendations in Phase I or II. Those recommendations can be found on page 9 and 10 of the linked report.
3. Page 11 of the report covers the construction program for FY 2009. Several adjustments have been made to the document even after the report was made on Friday. They are as follows:
A. In the section Estimates for additional expenditures on currently active projects, the item marked as “Contingencies on construction projects < 50% complete” has been changed from $161 million to approximately $106 million.
B. In the same section, there is no need to adjust for Advanced Construction (AC), so this value is $0.
C. These changes eliminate roughly $310 million in costs for the program, and it pushes the overall available funding for construction projects to approximately $1 billion in FY 2009.
4. At the end of the Board meeting on Friday, September 26, the Board passed a motion to have a $100 million October letting. Further, the Board directed that the projects to be split with 50% new construction and 50% maintenance projects.
If you have any additional questions regarding the report, please contact us at the GCAA office.
GDOT Turnaround Plan From the GDOT Website
Department of Transportation Weighs Options About Local Road Projects From the Rome News-Tribune and includes quotes from Board Member David Doss
Georgia DOT Considering Layoffs, Cuts to Road Projects From the Atlanta Business Chronicle
Hard Options to Fix DOT Budget From the Atlanta Journal Constitution
GDOT Releases Findings of Internal Audits
September 25, 2008
At the September meeting of the GDOT Board, the much anticipated release of several internal audits were revealed to the Board’s Finance Committee. One was a performance audit of the Office of Right of Way Acquisition and the other was the financial audit.
In brief, the audits concluded that the Department’s ROW program had been poorly managed and that the Department is in the midst of a $456 million shortfall in their budget.
The links below are for a summarization of the 2 reports and then the reports themselves.
Audit of GDOT Office of Row of Way Acquisition
Emergency Funding For Highway Trust Fund Editorial
September 15, 2008
The following editorial appeared in the September 15 edition of the Washington Post. It discusses recent action on behalf of Congress that will provide some funding into the highway trust fund. Additionally, it talks about some findings of a recent pilot program testing a mileage based fee as opposed to the gas tax. Finally, it gives some insights into the plans (or lack thereof) on transportation of both presidential candidates.
Paying for Roads
15 September 2008
Washington Post (Editorial)
ON THURSDAY, the House approved a bill that would infuse $8 billion into a trust fund that helps pay for America’s highways, staving off its insolvency and averting layoffs of construction workers and delays of vital transit projects. The bailout was necessary, and Congress acted with justified speed. Though the $8 billion patch will add to the national debt, we’re relieved that the Bush administration withdrew its shortsighted plan to transfer money from the mass transit account. Doing so would have imperiled the development of public transportation when many people are driving less for the first time in nearly 30 years. Still, the bailout is a temporary remedy that will keep the fund afloat for a year at most if projections hold. Congress needs to search for new sources of transportation funding or risk a similar crisis next fall.
Last October, the fund had an $8.1 billion surplus; this month Transportation Secretary Mary E. Peters announced that the fund’s balance would reach zero by Oct. 1. What changed? As gas prices rose, Americans drove less, and gas tax revenue, which funds most transportation projects, declined. The instability of gas tax revenue underscores the conflicting logic driving transportation policy. Transportation officials encourage mass transit but rely on drivers to generate most of the fund’s revenue. When drivers shift to buses and subways — as they have this year — revenue takes a hit, and an overburdened mass transit system is stretched to its limits.
Raising a federal gasoline tax that hasn’t increased since 1993 and that has lost much of its power to inflation would be a good first step. But gas tax revenue will continue to decline as Americans shift to fuel-efficient cars. Congress must take a fresh approach; it can start by looking to Oregon, where a recent pilot program proved that charging commuters for the miles they drive instead of the gas they purchase can be successful. Roughly 300 Oregon motorists agreed to a per-mile fee that increased when they drove in congested areas or during rush hour. The result? Twenty-two percent of participants drove less during peak periods. Nine in 10 participants said that they preferred the mileage fee to the gas tax. The National Surface Transportation Policy and Revenue Study Commission recommended to Congress this year that the country transition to a mileage fee by 2025; the success of the Oregon program proves this is possible.
Unfortunately, neither Barack Obama nor John McCain has made transportation a priority or spelled out in any detail how to pay for it. Mr. Obama calls for “stronger” infrastructure and the development of high-speed freight and passenger rail. He says that he would ease congestion by giving states money to build bike lanes and pedestrian-friendly roads.
Mr. McCain would encourage automakers to develop fuel-efficient technology by issuing a “Clean Car Challenge” that would award a $5,000 tax credit to each consumer who buys a zero-emissions car. He would also increase penalties for automakers that don’t comply with fuel economy standards, and he would offer a $300 million prize to anyone who can develop a car battery that surpasses current technology. He is right to focus on fuel efficiency and innovation, but his plan relies on implausible initiatives. His call for a gas tax holiday this year showed a misunderstanding of the fund’s unstable finances.
Though their plans don’t inspire confidence, we hope that the candidates learned from the Highway Trust Fund’s near-collapse. The next administration must work with Congress to find sustainable, environmentally logical sources of transportation funding.
Governor Announces Dates and Locations For the IT3 Listening Tour
September 15, 2008
The following correspondence was sent to us by GDOT in advance of the listening tour for IT3. IT3 is the Governor’s transportation initiative for our state and stands for “Investing in Tomorrow’s Transportation Today.” The tour will cover the entire state in the matter of a week.
Please take the opportunity to participate if you are able.
On behalf of Georgia DOT Commissioner Gena Abraham Evans and GRTA Executive Director Dick Anderson, this correspondence invites your participation in the upcoming Listening Tour events for Investing in Tomorrow’s Transportation Today (IT3). Earlier this year, Governor Perdue and the members of the State Transportation Board announced the IT3 initiative as a comprehensive strategy to improve Georgia’s transportation network.
During this outreach period, we are inviting citizens, transportation partners and stakeholders to provide input. In this regard, we respectfully request your attendance at one of the Listening Tour events so that we may hear your ideas and comments on IT3. If you are not able to participate in one of the local events nearest you, please feel free to visit the Website www.it3.ga.gov for more information and to provide feedback online.
Thank you in advance for your continuing support and interest in the future of Georgia’s transportation!
Monday, September 22, 2008
4:00 to 7:00 pm
Central Georgia Technical College
3300 Macon Tech Drive
Macon, Georgia 31206
Tuesday, September 23, 2008
4:00 to 7:00 pm
The Coastal GA Center
305 Fahm Street
Savannah, Georgia 31401
Wednesday, September 24, 2008
12:00 to 2:00 pm
Dalton City Hall
Conference Room
335 North Elm Stree
Dalton, Georgia 30719
4:00 to 7:00 pm
Georgia World Congress Center
285 Andrew Young Intl. Blvd., NW
Auditorium C101
Atlanta, Georgia 30313-1591
Thursday, September 25, 2008
12:00 to 2:00 pm
Valdosta Technical College
4089 Val Tech Road, Building 500
Conference Center
Valdosta, Georgia 31602
4:00 to 7:00 pm
Cunningham Center
3100 Gentian Boulevard
Columbus, Georgia 31907
Friday, September 26, 2008
12:00 to 2:00 pm
Columbia County Library
7022 Evans Town Center Boulevard
Evans, Georgia 30809
