Atlanta Highways In Trouble
Fewer Drivers Means Fewers Tax Dollars
Posted: 3:38 pm EDT August 27, 2008Updated: 5:17 pm EDT August 27, 2008
WASHINGTON -- It's an alarming downside of the American "staycation."Some Atlanta roads may not be repaired and new transit lines may never be built because a fund that relies on federal gas taxes is drying up. Americans drove 40 billion fewer miles from November to May. That's good news for the environment and the cost of fuel, but it's bad news for Atlanta's roadways.David Spear, spokesperson with Georgia's Department of Transportation, says half of Georgia's transportation funding comes from the Federal Highway Trust Fund. That fund relies on revenue from federal highway taxes.The Federal Highway Administration estimates it will amount to a 34 percent cut in federal highway programs in fiscal year 2009. Georgia received $1.2 billion from the fund in 2008 and would receive $850 million in 2009. That would be a $400 million dollar shortfall that could also cost Georgia 14,000 jobs."It means that many projects in the pipeline are going to be stopped," said Tony Kane, the director of Engineering for Aashto, the American Association of State Highway and Transportation Officials. "It means that states are going to be telling construction contractors 'Forget it, there's no jobs this year.'"He said the costs to build are adding to the state's obstacles. According to Aashto, in the past five years, the cost of concrete shot up 36 percent; asphalt is up 70 percent; steel is up 105 percent, and diesel to fuel the equipment is up 300 percent.Spear said the Department of Transportation hasn't made any official decision on what will be cut, but the federal shortfall could have the biggest impact on Georgia's plans for mass transit or commuter rails. Georgia's state constitution requires that any state gas tax revenues be used for roads and bridges. Mass transit is solely federally funded.While Georgia collects its own gas taxes, those revenues haven't been hit as hard as the federal government's. Spear said the revenue comes from a hybrid--7.5 cents a gallon plus 3 percent sales tax on motor fuel. That sales tax has gone up as prices have gone up. Nonetheless, Americans driving less is having an impact. July's revenue in '08 were down from July of last year. However, Spear said this is the first month that has happened and it amounts to $168,000 decline-- a drop in the bucket compared to federal cuts.As far as which Georgia highways will see cuts, the DOT is waiting for the final word on the federal trust fund. There is a measure working its way through Congress that could put an additional $8 billion dollars to shore up the fund. It has passed the House and the Senate may pick it up this fall.Kane said even if it does pass, the federal government needs to figure out more permanent solution for highway funding in the future. "It's a real bandaid," said Kane. "It's a short term fix. It's going to get us through this fiscal year but next fiscal year its going to be the same thing."
Copyright 2008 by WSBTV.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Copyright 2008 by WSBTV.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.













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