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Local Voices
Mike Lowry

The Transportation Tax and MARTA

We have major traffic congestion problems in metropolitan Atlanta. Unfortunately, less than 50 percent of the proposed projects funded by the TSPLOST directly addresses roads. 

More than 50 percent of the TSPLOST funding is directed to mass transit, including MARTA, which has reflected reduced ridership, high subsidy costs and annual losses since 2002. On top of this, another $600 million is added to TSPLOST for a new trolley system, which does nothing to relieve road congestion.

Let’s take a look at the facts regarding MARTA which came from their “Comprehensive Annual Financial Report, year ended June 30, 2010”. (Editor's Note: See attached PDF)

MARTA FACT SHEET

TSPLOST allocates approximately $2.5 billion for MARTA Rail and Bus Systems of which approximately $1.1 billion is for current operation and maintenance, upgrading various systems, rehabilitation of infrastructure and various improvements. This is a bailout of all of their deferred maintenance.           

MARTA’s long-range plan provided for the planning, construction, financing, and operation of a rapid transit system in multiple phases, consisting of approximately 60 miles of double track and 45 stations, of which 47.6 miles and 38 stations were in service June 30, 2010. The additional 13 plus miles of track and seven stations will be financed by federal money and through sales and use tax revenues, Sales Tax Revenue Bonds and investment income. 

MARTA Ridership Between 2006 and 2010: While population served across Atlanta’s 10 counties increased 20 percent since 2002, MARTA ridership declined for rail and bus, six percent and 17 percent respectively. 

The MARTA System:  

The rail system consists of 47.6 miles of operational double track and 38 fully functioning stations. The rail transit system consists of 318 air-conditioned vehicles.

Bus system consists of 582 diesel and compressed natural gas buses and 15 small buses; a heavy maintenance facility and four operating garages; several park-and-ride lots and an extensive system of patron bus shelters and stops. MARTA operates 131 different bus routes.

User Charges for MARTA Rail and Bus Transit System:

User charges are intended to finance only a portion of the cost of providing services.

An existing 1 percent sales tax is in place until June 30, 2047 after which it will be reduced to .5 percent. Funds go to support transit.

The MARTA Act provides that up to 50 percent of the sales tax collections in a fiscal year can be used to subsidize the operating expenses of the system. Transit related revenues for the years ended June 30, 2010 and 2009 were 61 percent and 60 percent, respectively, of operating costs.

A 25-cent base fare increase and $1 parking fee hike went into effect on October 1, 2009. This was the first time MARTA had raised its fares in eight years.

MARTA’s Finances: 
 
The approved 2010 Budget was $787.5 million with $399 million allocated to operating expenses and $388.5 million allocated to the capital improvement program and debt service expenses.

Debt included a total of $1,647,575,000 bonds outstanding and issued under three debt indentures. They also had $225,000,000 in commercial paper. In the past, debt service was limited to 45 percent of the corresponding year’s estimated sales tax receipts but this limit was lifted.

The fiscal Shortfall at the outset of the FY 2010-12 a total multi-year (2009-2012) financial shortfall of $441.5 million was forecasted in the 2010 Report. The previous two years losses were between $500-$510 million each year

Do we really want more of this?

Georgia, we can do better than this.

(Editor's Note: For a rebuttal by MARTA, click here.)

janet h russell

9:40 am on Friday, May 18, 2012

Dear Mr. Lowry,
To answer your question : Do we really want more of this? My answer is YES, YES, YES. Mass transit contributes greatly to relieving traffic problems in Metro Atlanta. Currently MARTA is the only mass transit system in a greater Metro are in the USA that receives ZERO financing from the state within which it operates. Yet, the state legislature has the power and uses it to determine how MARTA'S revenues are spent. The terrible traffic congestion has many factors but a key one is that the counties refused to cooperate with Fulton and DeKalb when Marta was starting its expansion into rail in the 70's. Snobbism, racism, fear all played into those decisions. And now the entire Metro area is paying the price. While the rest of the world hurls into the 21st century with mass transit, high speed rail and other creative alternatives to the individual in a car, Georgia and Metro Atlanta's opponents seemed to determined to keep us stuck in the 20th or maybe they would even prefer the 19th century? By definition "transportation" means " moving across" , it is not specifically a definition for cars. You must plan now for the future generations who according to the most recent surveys do not see themselves mowing suburban lawns or owning cars. Embrace change or risk irrelevance.

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Mike Lowry

9:46 am on Friday, May 18, 2012

Janet,

Unfortunately you seem to be leaping over the hard facts. In an area that has the low density of the Atlanta metro area, transit does nothing to relieve congestion. MARTA ridership has declined continuously, and is less than 5% of the corriders it serves. For most of the region, transit is not an effective option.

It is the most expensive solution. It is the most emission-expensive solution. It serves the smallest percentage of people.

We should focus on real solutions to making our roadways more usable.

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Greg T

10:07 am on Friday, May 18, 2012

Janet Russell,
Mr. Lowry didn't say that we shouldn't improve our transportation infrastructure. You don't address Mr. Lowry's concerns at all. In fact you totally ignored him.

I for one would love to ride a train into downtown or to the airport from my northern suburban home.

Here's the problem. You and our government (regardless of party affiliation no less) keep ignoring the problems. MARTA currently operates poorly across the board. Many of the proposed new funds go to an already inept governing agency. Why do you believe that more money will change the inept governance or improve our commute. It baffles me when people believe that throwing good money after bad is a good thing.

Fix what is currently broken before asking for more money. Any investor or manager knows that adding more money and resources will actually make the situation worse, not better. The current MARTA needs overhauled. It is unwise and rather foolish to trust someone who is known to fail with more opportunity to continue to fail. You wouldn't do it for your own household.

Good management would remove the bad elements. Fix what is broken, and then ask for more money and resources for the proven system. The current proposal will actually take more money off the table and leave us with no traffic relief, take the current MARTA and 400 as examples.

Vote NO, NO, NO until our elected officials take managing our money seriously and with efficiency.

Dean Sheridan

9:56 am on Friday, May 18, 2012

You've heard about the Trolley car from Hell in downtown Atlanta? This makes that look like a matchbox toy funding project. I implore every citizen of our State to get the facts like ones listed above & call your Legislator. Let them know the Project list is wrong; as such you want fiscally sound projects that will not commingle any new funds to bail out existing budget busters or money losing Projects like MARTA. Entities must stand on their own. If we think losing 475 million a year is not good enough with MARTA as ridership decreases annually - wait until we have to swallow 3 BILLION in loses & maintenance on these proposed rail projects.

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janet h russell

10:31 am on Friday, May 18, 2012

I agree that Marta must be improved but how can it improve serrvice which would increase ridership (you say that ridership is down) when the legislature decides that 50% of all revenues must go to capital improvements not to service? As for the trolley, I am still out on that one. I do know that the trolley in Seattle has proven to be a great success.
Interesting, that the "well travelled, well educated people" of Metro brag about how they use mass transit "the metro", " the Tube", the "Sbahn" when they are travelling abroad but when they return they return to their cocoon mentality and get back in their cars. Time for an attitude adjustment or the Metro area will die of axphxiation from it's own exhaust fumes.
I just wish I owned the company that makes the orange barrels that are omnipresent. That is the real waste of money...$80.00 per barrel at last count.

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Bob B

6:33 pm on Friday, May 18, 2012

It sounds like you want to "legislate" my behavior. I want the freedom to choose how I wish to commute. Public transportation should learn to compete. We've already paid for the infrastructure of MARTA. Now is the time for them to step up and be competitive. Our continued tax support and adding more money into the pot is just giving the addict more drugs. They should be providing a service that is valued. If so, people will flock to the service with little or no tax support. Otherwise, MARTA is just another hole that is supported from public guilt and is a scam to take public money and create "make work" jobs on the taxpayers' backs.

janet h russell

10:39 am on Friday, May 18, 2012

Gentlemen,
Quick question: Have any of you ever used Marta connecting bus to train or the reverse? And I don't mean to a Braves game. And done it consistently to continue your daily living. All of your numbers seem to have forgotten the human element who actually use Marta.

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Greg T

2:11 pm on Friday, May 18, 2012

I have a blind friend that must use public transportation like buses and trains. She and others that I know benefit from mass transit. I've also used it in other states. That's why I'm personally for mass transit.

The issue remains incompetence and a media that doesn't seem capable of anything close to journalism. The newest grandiose claim sounds just like the last one, yet where are the journalists holding both Republican and Democrats to task. Where's the outrage at not having a clear cut program that we the voters and the media can follow and get a hang of? I've seen other states/municipalities give precise game plans to include exits and expected usage due to known factors. This project is a "build it and they will come" plan. Why does our governing authorities make it so difficult? There are so many places in the proposal for corruption, kick-backs and personal financial advancement for officials involved with the project. As mentioned in the article, there is a large and looming debt crisis that needs resolved by the current MARTA that there is a good possibility that this TSPLOST is simply a chance to cover current officials mistakes and cronyism. It just feels like this will be another tax that solves nothing.

We're not even talking about a rail system to follow 75/85 like 400 has. Carry a rail system from north through downtown and onto the airport as the backbone with ribs connecting the rest. Wouldn't that be the first thing you'd do?

janet h russell

3:16 pm on Friday, May 18, 2012

I agree with you, Greg, about a comprehensive system that goes North to South into the airport. Yet, just this week the new international terminal at a cost of 1.4 billion dollars opened and guess what? You can take Marta to the domestic (formerly the entire terminal) and then make your way to a shuttle bus for a 12 min ride to the new state of the art international terminal. International passenger traffic is predicted to expand to almost 10 million in the next 3 years. Imagine, if only 5% of each arriving plane of passengers want to use Marta. They will wait for a bus or many busses to fill , shuttle, return, fill , shuttle etc. The reason: Cost projections of 350million...yet there is light rail from the main terminal to the rental car lot. I am sure that didn't cost anywhere near 350 million dollars. But I bet the taxi companies and the rental car companies made sure that the airport officials were pressured or coereced into no options except theirs for arriving and departing international passengers. So when people start complaining about mismanagement, corruption, special interest and money, remember that every arriving, changing planes and departing passenger in Atlanta pays a PFC to the airport. But who decides where that money goes? Just rambling thoughts about a very important issue.

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Greg T

3:49 pm on Friday, May 18, 2012

You've got it. Officials refuse to use or consider common sense ideas because there are political favors to be had otherwise. That is my point. Until we get the real problem under control, it won't matter how much money you give them.

Greg T

3:36 pm on Friday, May 18, 2012

Take an areal view of the airport. Look at all the parking that currently exists that could be built upon for multiple parking lots. By simply building parking garages, I'd increase parking at the airport 4 fold. The airport would receive all the parking funds to continue to build more parking inside airport property lines. Nice revenue for the airport and direct benefit for the user.

You've got my problem with the current proposal. See how cheaply and easily I can solve problems, yet our current officials are inept for reasons you mentioned.

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JAH

4:01 pm on Friday, May 18, 2012

Vote no to this boondoggle.

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janet h russell

7:13 pm on Friday, May 18, 2012

And this just in: Eurostar trains has captured have 85% market share of trip between London/ Paris, Brussells because it is more efficient to travel among those cities by train rather than a plane. Germany is building a newer high speed rail train to connect cities. And here in Atlanta, we are still discussing the simple value of mass transit vs cars. There are many reasons that Marta has shortcomings but the fact that their revenues are controlled by a legislature that doesn't use mass transit could be the biggest problem. Take away the taxpayer funded cars and gas cards and find out how quickly we get some effective mass transit in Metro Atlanta and around the state. Imagine a train from Atlanta to Savannah, Valdosta, Augusta in 1 hr? The economic impact from this connectivity would be immeasurable. But no, the lobbyists who represent road paving, orange barrels, black top, car insurance have spoken. So Bob, it seems the only people trying to legislate your behavior are your elected officials when they don't give you a satisfactory option to the car because they are "beholding" to another interest and its' not ours.

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Greg T

7:28 pm on Friday, May 18, 2012

Since the market share is so good, where is the private company wanting to make the cash here in America?

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Mike Lowry

10:26 am on Saturday, May 19, 2012

Janet, you seem determined to dominate the conversation. If you're a fan of Europe, I suggest you compare city densities to educate yourself on the key differences. Atlanta has one of the lowest city densities in the country (a key part of its appeal). Transit only works in cities with very high densities. Transit can never work in Atlanta unless we rebuild major parts of the city into high-density housing, in which case most of us will leave and reduce the congestion problem :).

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Bob B

11:54 am on Saturday, May 19, 2012

And none of them operate in the black. All are heavily subsidized! Just buy some more debt. If your interested in more debt to send to the bottomless pit, Just sign on to the T-Bloat. We do agree that we need to get our current crop of legislators to correct their current path. Although, we do not agree on the path.

janet h russell

8:05 pm on Friday, May 18, 2012

Megabus from the UK has arrived in Atlanta and other cities in the US. check them out for short haul trips in the SE.

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Mark Sanders

10:19 pm on Friday, May 18, 2012

Say no to this crazy T-SPLOST. I agree with the other comments mentioned already. I don't trust MARTA worth a damn. Fulton and DeKalb counties have both been paying the penny sales tax and will do so for a 30-year period. I lived in DeKalb for many years and officials there did not keep their promise to residents and businesses alike. They promised to extend rail line into East DeKalb for years, and it never materialized. Why? Because previous MARTA executives have squandered funding that have been provided to them. Where is the ROI for the years of taxes they paid for "regional" transit? If MARTA leadership had not abused their funding, the system would have been in better shape financially and services in other parts of Fulton and DeKalb would have been provided.

Yes, I understand that the rest of Metro Atlanta should have pitched in and joined MARTA years ago (which is part of the reason why we have this hellish traffic now), but real problem is the greed and corruption of MARTA itself. And now the state wants to create a plan to address an issue that been in existence for over 20 years?? These incompetent board members are the same ones that implemented the plan to convert Gwinnett's HOV lanes into a "HOT" lanes. Absolutely stupid idea!!! Are you kidding me???

I guess the rest of Metro Atlanta has finally realized that more roads cannot be the only solution to stop traffic here in Atlanta. Wow!!

Say HELL NO to this T-SPLOST plan.

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Frank Jones

10:50 pm on Friday, May 18, 2012

Atlanta-metro traffic congestion is a nightmare and unfortunately, our legislature isn't willing to propose a real solution. Their solution is to have us to voluntarily increase our sales taxes to solve "our" traffic problems. However, Atlanta's traffic isn't just "our" problem!

Three major interstate flow through metro-Atlanta and they contribute greatly to our congestion. Individuals from all over the country travel through our city daily on the way to some destination. Businesses in Savannah, Macon, Columbus, and south Georgia transport goods through Atlanta. However, neither the traveling public nor the businesses traveling through metro-Atlanta will contribute (or contribute much) to our roadway improvements. Just us...the citizens of the Atlanta region.

And while we're paying the additional 1% sales tax, how much gas tax money are we sending to south, east and west Georgia? How much money have we already sent to them? The last I checked, they have ample infrastructure and aren't voting on their own T-Splost...thanks to us!

Our legislature likes to divide the citizens of the state. They like to pit one group against another. They like to say "this is your problem, the solution is up to you". However, traffic congestion is Georgia's problem and all Georgians should pay to solve it.

In my opinion, the state should increase the income tax rates by 1/2%. That'll solve the problem! Everyone Benefits...Everyone Pays.

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janet h russell

10:50 am on Saturday, May 19, 2012

Mr. Lowry,
I am well aware of the density of European cities and how they arrived at their composition. I have travelled to 80 countries in the last 35 years. You are right low density of Atlanta. And while that had appeal in years past, I think it would be enlightening for you to check out the recent surveys done of the future workers and home buyers that we are actually paving the way for in this city. They don't want sprawl, lawns, or even cars in many cases. As for your comment about dominating the conversation, last time I checked this was an open forum. You started the conversation and the rest of us have continued it. Enjoy your weekend. You can probably wash your car.

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Bob B

12:01 pm on Saturday, May 19, 2012

Yes, wash your car and support a local business that has to operate in the black. And is based upon meeting your needs and being responsive to you. Not being supported by the unproductive expensive confiscatory government.

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janet h russell

12:35 pm on Saturday, May 19, 2012

Mr. Burrows, I meant YOU wash your own car not have someone do it for you. That is taking personal responsibility for your car washing...not delegating it to someone else.

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Bob B

2:39 pm on Sunday, May 20, 2012

Washing your car at a local business supports the local economy and provides jobs. Supporting our local businesses is taking responsibility for myself and my property. This great country is based upon a fair market approach where the opportunity is there to provide a service that someone that works for a living can then use. Washing your own car is up to each of us. You are free to choose. This not true with the T-bloat. This is a case where others get to choose how your money is spent after they force some of it away from you. I believe in governments handling transportation issues in a way that benefits the largest amount of taxpayers. T-bloat is not. It is flawed in too many ways.

Dean Sheridan

12:26 pm on Monday, May 21, 2012

@janet h russell :You may have had the privileged to be a world traveler; most are not. The Elders of the European movement here as Citizens would tell you ( I personally know this because of my linage) that not only is the total dynamic such as the population density indifferent but if we continue down this path of taxation & Social Engineering as it were they would have stayed in their Country. Your either not listening to those who write about common sense solutions or you don't want to here them. The idea that some how in very Rural area like lets say Cherokee County a Project like this Billion dollar Albatross is plausible solution to traffic congestion,so be it - is preposterous. Anyone in could conscience cannot either. The advocates of the project list stopped selling it that way months ago and admit it. I suggest you go to the debate at the Bluffs tomorrow night; listen & learn and be part of the solution not a agenda driven ideologue. I'm all ears on this one. To date I have heard very little that offers real solutions for the kind of money we are asking the tax payer to dole up here forever - yes and it is forever like forever and then some. It's flat out wrong and deceptive.

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B in Jasper

1:30 am on Saturday, May 26, 2012

One option I havent heard anyone speak about but seems perfect for Atlanta wouldnt require anymore government envolvement. Or money given to government. It might potientially change the traditional work week a little, but the trade off would be well worth it if what used to take you two hours now only takes thirty to forty- five minutes. Cooperation of sorts between companies to stage work weeks or work time. Example, Three long days to satisfy work hours. Of course this would take some getting used to, but to every disadvantage there are advantages also. The companies would have more workers trained evenually to fill the gaps from various traffic zones. The home stresses and burn out factor would drastically go down. I didnt suppose it was an easy idea, but Im tired of traffic and tired of wasted money to people who lie for a living. I used to hear stories about an America that didnt wait for Uncle Sam to come in and change the diaper. I wish that was the one somebody was handing me instead of this smelly load.

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