Economist: Effect of Stimulus Dollars Months Off

Federal stimulus dollars are starting to roll into Georgia. But it could be a while until the money helps the state’s economy. Funds from the American Recovery and Reinvestment Act are ramping up state projects like making buildings more energy efficient to building roads.

They’re creating jobs and that means more tax dollars. But it could be months until we see its effect on revenues.

"Part of it is the lag when the cash comes in and it shows up in paychecks and spending," said professor of Economics at Mercer University Roger Tutterow, "and then of course there’s a lag between when that occurs and the state actually gets their cuts and reflects it in their tax revenue collections."

Case in point, the Department of Transportation. It got $62 million in May, and the first of 41 projects just started last week--- workers began repaving a road south of Atlanta. The project allowed a state contractor to keep 25 employees and create 3 new jobs. DOT officials do expect the remaining 40 projects to begin this month.

Georgia Gazette Tuesday, June 30, 2009

Join host Rickey Bevington tonight for Georgia Gazette. On tonight's show… The right to choose your public school, to adopt an embryo, and celebrate Confederate history… we highlight some new laws in effect tomorrow. Combating childhood obesity in south Georgia… one community tries to reverse the trend. Climate change regulation…Are you willing to pay more for electricity in order to cut your carbon footprint? These stories and more tonight on Georgia Gazette at 6, 7 in Athens, re-broadcast at 11, hear our show any time at www.gpb.org/georgiagazette, and download a free podcast on iTunes.

Billions of Dollars In New Hands

Gov. Sonny Perdue has signed an overhaul of the state's transportation bureaucracy into law. Republican leaders are hoping the changes help transform a dysfunctional bureaucracy that's lagging behind on badly needed road projects. The makeover gives the governor and state lawmakers new power over how infrastructure dollars are spent. The bill signed by Perdue on Tuesday stopped short of his original proposal, which would have replaced the 13-member state transportation board elected by legislators with a new agency.

(Associated Press)

Smith Still Wants Commissioner Post

State Representative Vance Smith says he'll try for the Department of Transportation commissioner's job again. The Pine Mountain Republican was beaten out for the post on a 7-6 vote by Gena Abraham Evans in October 2007. The State Transportation Board voted 9-3 in February to fire Evans. Evans controversial tenure included a romantic relationship with board chairman Mike Evans, leading to their marriage. The General Assembly passed a bill that takes some power and influence away from the DOT board and shifts it to the General Assembly and the governors office. Smith is chairman of the House Transportation Committee.

(Associated Press)

Sine Die 2009 - Budget: Pass Transportation: FAIL

Last night, just before midnight, the 40th day of the Constitutionally mandated session came to a close.

Lawmakers in the House and Senate agreed to next year's budget by around two in the afternoon.

But for transportation - there just wasn't enough time to come to a consesus.

Lawmakers from both chambers held conference committee talks late into the night; but they failed to come up with agreement on how to fund the state's transportation network.

Leading talks in the House was Republican Vance Smith. His team of negotiators proposed a plan that would let voters decide if they wanted a statewide penny sales tax. If that vote failed, then the Senate's regional plan would take effect.

"The Senate just for some reason wouldn't along with that, so..."

House Democrats like Dubose Porter say they're disappointed with their Republican colleagues.

"Transportation's the #1 economic development issue facing the state and for the 2nd year in a row it failed because of a lack of leadership from this administration."

Both chambers did approve a bill that would overhaul the DOT and let the governor appoint a planning director. That bill now heads to Governor Sonny Perdue's desk.

Website Tracks State Stimulus Funds

There's a new website to track how Georgia is spending federal stimulus funds for transportation. Georgia will receive $932 million for job stimulation related to transportation projects from the American Recovery and Reinvestment Act of 2009 (ARRA). www.dot.ga.gov/gastimulus is run by the Department of Transportation. The federal funding has very specific project requirements, and also requires that states provide ready access to information on project selection, funding deadlines and progress toward construction.

Gov. Perdue: State Transportation System Is Broken

State lawmakers announced new legislation Thursday that would overhaul Georgia's transportation system.

Governor Sonny Perdue says the transportation system in Georgia is broken. That's why he, House Speaker Glenn Richardson and Lieutenant Governor Casey Cagle are joining forces to combine two state agencies into one - the State Transportation Authority.

Perdue says right now, the state is likely losing money because of poorly managed projects and too much gridlock on the streets. But he believes the new agency will create stronger oversight and accountability.

"It will abandon the scattered approach that spreads resources too thin and will instead focus the investment that will actually move the needle on congestion and job creation."

Mismanagement at the current Department of Transportation has left the agency millions of dollars in debt with hundreds of projects unfinished.

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State signs on to electronic billboards

The state plans to use privately owned electronic billboards in metro areas to broadcast emergency alerts. The billboards will be used like the Department of Transportation's electronic signs over the interstates in Atlanta, which can post traffic conditions or broadcast "Levi Calls" for missing children. The Georgia Emergency Management Agency and Georgia Bureau of Investigation can activate the 75 billboards donated by the Outdoor Advertising Association of Georgia. The signs, which normally carry advertising, are located on highways in Atlanta, Albany, Augusta, Brunswick, Macon, Rome, Savannah and Valdosta.

(Associated Press)

Southwest GA officials: extend I-185

Chamber of Commerce, local and county officials from Albany and surrounding areas say they want the state to extend I-185 down to I-10 in Florida, and route it through their area.

They met on Monday in Albany with Georgia Department of Transportation officials to discuss the proposal, which includes a 32-county area.

I-185 now runs from Lagrange to Columbus. The proposed extension would add about 180 miles to the route and take it all the way to Tallahassee.

Dan Bollinger, director of the Southwest Georgia Regional Development Center says a projected population of over a million people by 2040 makes the highway essential:

“If we have expanded transportation capabilities, I think it would enhance our ability to attract new industry to this area, and really maintain and enhance our growth rates in the future.”

Bollinger says the road would also serve Homeland Security needs, since there are several military installation along the way.

Click here for more GPB News coverage of transportation issues in Georgia.

Litter costs Georgia millions

Litter on Georgia roadways costs taxpayers more than a million dollars a week. The state Department of Transportation says it spent $1.3 million in a recent week-long roadway trash collection. In that one week, crews picked up nearly a million pounds of garbage. The DOT already spends $15-million annually on litter removal throughout the year.

High gas prices mean more break-downs

More people are running out of gas because high fuel price, and that's taxing the state Department of Transportation. Highway Emergency Response Operators – or HEROs -- are getting 20 calls per shift on average to help people who say they're out of gas. HEROs can give a stranded motorist up to a gallon of gas to help get them to the nearest gas station.

No charges in road worker death

Authorities in Henry County say they plan no charges against a woman who struck and killed a Georgia Department of Transportation subcontractor. The accident happened around 7:30 last night on Interstate 75 near McDonough. Henry County Police say the employee was trying to chase a road barrel when he ran into traffic and was hit by motorist Leah Mitchell.

DOT prepared for winter weather

Winter officially begins tomorrow and the Department of Transportation says it’s ready. More than 2,600 DOT employees are working statewide, ready for snow and ice with 350 snow plows and 350 salt and rock spreaders. The DOT has in store 34,000 tons of gravel and nearly 25,000 tons of rock salt.

DOT Chair: "Red tape causes road work delays"

The head of the state Department of Transportation board says red tape is hindering road projects in Georgia. Mike Evans told a transportation committee yesterday that environmental regulations and project development processes are imposing undue costs and delays. He asked regulators to adopt a quote "more reasoned and practical approach." Transportation officials from around the country participated in yesterday’s meeting to address needed reforms to federal transportation policy.

Georgia gets first woman DOT chief

For the first time in state history, a woman will lead Georgia’s Department of Transportation. Gena Lester Abraham becomes the 14th DOT Commissioner. She will oversee 5,800 employees and a budget of more than $2-billion dollars a year.

High speed rail to be discussed

The idea of a high-speed rail link between Atlanta and Chattanooga will be the topic of three meetings this week. It is a proposed 110-mile magnetic levitation system that would span the distance between Atlanta’s Hartsfield-Jackson International Airport and Chattanooga. A major concern with the proposed rail line is how to pay for it. Meetings this week will include Department of Transportation officials, as well as consultants familiar with high speed rail service. The first meeting is today in Atlanta, followed by meetings tomorrow in Rome, and Thursday in Chattanooga.

Transportation commissioner to retire

Georgia Department of Transportation Commmissioner Harold E. Linnenkohl has announced his retirement. Linnenkohl says he’ll step down November 30th, capping a 39-year DOT career. He has headed the DOT since 2003.

DOT announces funding shortfall

The Georgia Department of Transportation says it was $445-million dollars short last fiscal year. That’s according to the Department’s website – www.whatsthebigidea.us. The site launched last year to educate the public about transportation funding in Georgia. The site lists road projects that have been delayed because of the funding shortfall.

Commuter rail plan stuck in limbo

A state board of transportation committee held a public hearing Wednesday to discuss whether commuter rail would ever come to Georgia. They did not find an answer.

State officials have studied the feasibility of commuter rail lines between Atlanta, middle Georgia and Athens for years. They have looked at the costs, the ridership, and the routes. Georgia has $107 million in federal and state funds to spend on a line that runs from Atlanta to Lovejoy. Norfolk Southern has agreed to rent its rail lines to the state for a commuter service.

State board members reviewed all of those facts at the meeting, and then asked the public to comment.

"We're planning. We're re-planning. We're designing. We're consulting, and we're going in circles," said state Rep. Steve Davis (R-McDonough). He said the state should forget about commuter rail and instead focus on improving roads.

But most speakers argued in favor of the rail line as one alternative to clogged highways.

"We need all the capacity we can get our hands on because we feel like we're choking to death on congestion, and we're starting to lose business," said Terry Chastain of the Metro Atlanta Chamber of Commerce.

In the end, committee members were too far apart to recommend anything to the full board. Committee chairman Larry Walker concluded the meeting without a vote. He says even if the committee recommended the state go forward with the Atlanta-to-Lovejoy line, the full board would vote that option down.

"I think we don't need to do that right now," Walker said. He, like the majority of committee members, wanted updated estimates of the costs and revenue from a commuter rail line. The committee will meet again in a few weeks.