Imperatives

Imperatives

How to best …• Reduce traffic congestion?• Move non-drivers?• Attract new jobs?

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Note to reader: these slides follow the six

pages of narrative titled “TF Testimony”

Three Concerns

- 60-year old business model under-performs

- Massive annual losses divert scarce tax dollars from other needs

- More government vs. home rule

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"We have a business model that is failing. You can't continue to run red ink and not make changes.”

US Postmaster General Patrick Donahoe, Dec, 20113

A Tale of Two CitiesMaking It Work: More Transit, or Increased Regional Density

Must Condemn 57% of 1990 built-up area for

Residential use thru 2040 to achieve pop. density

Have NeedRail Miles 48 2,113Stations 38 2,800

For 60% of ‘02 pop. to be within .4 mi. of a station

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Provide More Transit

3% Train

+ 2% Bus= 5% transit

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Operating Expenses = 5 x Revenue

MARTA 2010 Comprehensive Annual Financial Report, p. 5

Non-Operating revenue includes Fulton & DeKalb sales tax, use of capital funds, and federal grants

2007 2006 .(382,942) (348,297)

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MARTA BoardingsUnlinked

Ref: MARTA 2010 Comprehensive Annual Financial Report, p 71 U.S. Census data

10-County Population+ 20%

+ 10%

0

- 10%

- 20%

Train, -6%Bus, -17%

2001 2005 2010 7

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Funding Sources

1 MARTA Annual Report, June 20, 2010, page 5

Gen’l Sales & Use taxes and Grants

HIGHWAY

1 15% Diverted from Highway Use

http://www.fhwa.dot.gov/policy/ohim/hs06/finance.htm

Fuel & Vehicle Taxes1 53%Tolls 5%Investment Income 5%General Fund 16%Bond Proceeds 11%Other 6%Property Taxes 5%

NonUser

OperatingRevenue

81% Non-User1 19% User1 95%+ User

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Air QualityDays of Non-Attainment

Data Source: http://www.gaepd.org/air/amp/ http://quickfacts.census.gov/qfd/states/13/13067.html

Cobb, Fulton, 13%

2000 – 2010Population Growth

Gwinnett, 37%Cherokee, 51%

Car & Truck Registrations

Poor Air Quality

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Project Costs

52%Transit48%

Highway

1/2% Bike/Avn

Source: RTR, Oct 15, 2011 Final Constrained List, http://www.atlantaregionalroundtable.com/

55% MARTA heavy rail17% MARTA maint21% Streetcar 6% Bus

Total Cost

What’s theUltimateCost?

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TIA-AT-004/007Atlanta Beltline and Atlanta Streetcar

Project Cost = $601,892,477 = $106,530 per riderRiders (11,300 boardings1 / 2) 5,650

1 ARC Project Fact Sheet, Approved Oct 15, 20112 MARTA 2010 Comprehensive Annual Report, p. 5

Operating & Maintenance

2010 Operating Loss2 = $508,000,000 = $ 2,540 per rider2010 Riders3 200,000

x 5,650 riders= Annual taxpayer cost for riders $14,351,000

3 MARTA 2010 Comprehensive Annual Report Economic Impact of MARTA, Carl Vinson Inst. of Government, GSU, p. 5 12

$ 426,120 Project cost for four riders @ $106,530 ea.- $ 55,000 Chauffeur, 9 years’ experience - $ 320,000 Rolls Royce Phantom = $ 51,120 x 1,412 cars = $72.2m Savings to Taxpayers!

A Carpooling Alternative

Bonus: Employs 1,412 people (30% of MARTA’s 2010 workforce)13

Transportation Authorities

“The Act gives GRTA the power to build and operate, or force local governments to operate, public transportation systems. Further, it gives GRTA the power to cut off transportation funds to developments of regional impact of which it does not approve.”

http://digitalarchive.gsu.edu/gsulr/vol16/iss1/7/

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RecommendationsPrinciples

• Explain the law’s purpose• Directly linked to GA Constitution• Representation thru general elections• “Gen’l Welfare” benefits apply to all• Transparent

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RecommendationsStrategic

• Develop the Atlanta solution• Repeal para 13(c), ‘91 Fed Transit Act• Explain:

- Why current gov’t cannot do what a new Transit Authority will do- What offices a new Transit Authority will eliminate

• Move transit costs to beneficiaries16

RecommendationsOperational Level

• Limit expenditures to projects on the Unconstrained Investment List

• Provide for publicly elected Transit Authority officers• Develop & present best practices for telecommuter

management

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RecommendationsOperational Level

Require that measures of effectiveness, their factors, and values be published in the annual report, to include:

• Goals for traffic mitigation and accomplishments, by project• Number of new passengers forecast & realized• Cost per passenger-mile for rail and bus transit• Fare box recovery ratio for train and bus transit• Taxpayer subsidy cost per passenger• Quantified comparison of taxpayer subsidies to benefits

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RecommendationsExclusions

Provide counties that operate transit wholly within their counties the option to exclude themselves from a regional transit authority

Specifically exclude authority to:• Exercise eminent domain• Require jurisdictions to accept/operate transit they do not

approve• Override local jurisdictions’ land use planning and zoning

authority, or invoke penalties on them for their planning & zoning decisions

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RecommendationsAdministration

Provide:– Governor’s executive order that establishes the TF– Meeting dates, times, locations, and agendas– Current draft of the transit authority act under development– Contact info for Transit Governance TF members– Meeting minutes; record by-name votes on questions that

are not unanimous– Provision to sign up on-line for updates from the TF– Public comment at every meeting

Solicit public involvement and testimony by taxpayer groups; solicit an equal period of their testimony as is provided by MARTA, GRTA, ACCG, GTA, etc.

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