Issue Position: Transportation Funding

Issue Position

A special Joint Study Committee on Critical Transportation Infrastructure Funding held eight public hearings to address a growing crisis with regard to funding the construction, repair and maintenance of Georgia's transportation infrastructure. The committee's official report concluded that Georgia needs a minimum of $1 billion to $1.5 billion in additional annual revenue to maintain the state's existing roads, bridges, air and transit system infrastructure, as well as $5.4 billion more annually for necessary transit expansion and new road construction.Noting that Georgia currently ranks 49th in terms of state spending per capita on its roads, the report states, "Investment in transportation infrastructure must be viewed in its larger economic context. Roads, bridges, transit systems and rail lines are critical means of connecting businesses with their customers and employees. However, congestion on major highways costs the state billions each year in lost productivity, including extended commutes and delayed shipments of goods. These problems are only expected to grow as the United States, and fast-growing states like Georgia particularly, continue to experience rapid population growth, increased use of freight and shipping lanes, and urban areas become more congested. In order to remain nationally and globally competitive, and to meet these challenges, Georgia must take immediate and significant steps to increase its investment in transportation infrastructure."

To generate those funds, lawmakers must consider a variety of options, one of which is an increase in the state motor fuel tax. Among the funding options included in the report are:

Reduce the Georgia Department of Transportation's bonded indebtedness with payments from the state's general fund.
Reform Georgia's motor fuel tax structure by converting the 4 percent sales tax on motor fuel to an excise tax.
Index the motor fuel tax to inflation, construction costs or even the price of gasoline to preserve its purchasing power.
Recapitalize the Georgia Transportation Infrastructure Bank so that a revolving, self-sustaining loan/grant fund is created specifically to incentivize governmental entities to provide matching funds for local construction projects.
Implement a one-cent statewide sales tax for transportation purposes.
Increase Georgia's motor fuel tax, which has not been increased since 1971.
Establish an annual road use fee for alternative fuel vehicles.
Seek long-term solutions to wean the state and local governments from use of sales taxes on gasoline for non-transportation purposes.
Acknowledge the need for additional investment in transit systems around the state.
Give specific attention to the development of new toll lanes and managed lane networks.
Double the funding for Local Maintenance and Improvement Grants.

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