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MARTA Won't Get Operations Funding

MARTA spokeswoman Cara Hodgson denies many of Mike Lowry's claims about the system and its expected draw from the TSPLOST.

 

A recent post by Patch blogger Mike Lowry has MARTA responding with its own set of facts and figures.

In his blog, "The Transportation Tax and MARTA," Lowry surmises MARTA will get $2.5 billion, of which $1.1 billion goes to current operation and maintenance. Not so, says system spokeswoman Cara Hodgson, who contacted Patch by phone and email.

"The Transportation Investment Act does not allow MARTA to receive any operations funding for the existing system which is defined as anything operating before January 2011. The referendum list includes $600 million for MARTA state of good repair capital projects but no funding for operations," she wrote to Patch in an e-mail.

According to Hodgson, the Transportation Investment Act precludes MARTA from receiving any operating dollars for the current system, making it the only transit system in the state that’s precluded from receiving operations funding for its current system as part of the transportation referendum.

Below is a list of the TSPLOST transit projects considered to be MARTA projects:

MARTA State of Good Repair Capital Projects: 

  • $600 million

Expansion projects in MARTA’s jurisdictions:

  • I-20 East $225 million
  • Clifton Corridor $700 million

Transit projects sponsored by other jurisdictions

Project Development Funding

  • North Line $37 million
  • 1-85 NE Line $95 million
  • Griffin/Macon Commuter Rail $20 million

System Expansions

  • Atlanta Beltline $602 million
  • Cobb County NW Corridor $689 million
  • Piedmont/Roswell BRT $50 million

Lowry contends that the population in the Atlanta Regional Commission's 10 counties grew 20 percent in 10 years, but MARTA declined overall. Though Hodgson notes MARTA only serves two of the 10 counties: Fulton and DeKalb, which only grew a combined 8.8 percent, according to the 2010 census.

Additionally, she says rail ridership actually grew between 2006 and 2010. However, "since 2010, ridership has declined due to a number of reasons including high unemployment resulting in some customers no longer riding because they are not going to work as well as transit service cuts and fare increases brought about by the significant economic downturn and lack of a sustainable funding mechanism."

Hodgson also points out some changes in the system during 2011, such as a decrease of regular buses from 582 to 531, the cutting out of small buses altogether and the changing of bus routes from 131 to 92.

MARTA has an existing one percent sales tax in place until June 30, 2047 after which it will be reduced to .5 percent, until April 24, 2057, said Hodgson, who also noted the system increased fares in 2012 from $2 to $2.50.

She pointed out the finance information Lowry refers to in the blog are two years old, since it comes from the 2010 budget.

In referance to Lowry's mention of the forecasted total multi-year (2009-2012) $441.5 million fiscal shortfall, Hodgson again cries foul.

"First and foremost, Mr. Lowry is selectively using numbers from an old annual report and not putting the proper context around them. While there was a projected shortfall of $441.5 million during the FY 2010 to 2012 time period, MARTA took a number of steps over this three year period to significantly minimize that shortfall including implementing internal cost containment measures, fare increases and service reductions. In actuality during FY 2010 and FY 2011, MARTA only used $21.8 million and $30.7 million, respectively, from reserves to address the shortfall. In FY 2012, MARTA has budgeted to use $22.7 million from reserves. Mr. Lowry’s analysis conveniently left out the actual budget numbers and numerous prudent steps that MARTA has taken to address the financial shortfall we experienced due to the significant and sustained economic recession. Over the three year period that he references, MARTA’s actual and budgeted use of reserves has totaled $75 million, not $441.5 million. It’s important to note that the economic downturn took a significant hit on MARTA’s sales tax revenues during this time. From FY 2008 to FY 2011, MARTA’s sales tax revenues declined $291 million. Currently, the revised sales tax projections from the Georgia State Economic Forecasting Center show a loss/reduction of more than $130 million from FY 2012 through FY 2016," she said.

Lowry had also written that the losses between 2008 and 2010 were between $500-$510 million each year, to which Hodgson responded:

"Mr. Lowry is referencing accounting statements that include the depreciation of our assets which has nothing to do with the actual cash on hand that MARTA had during that time. The reduction in asset value is an accounting principle that all companies use and is not at all a reflection of an organization’s available cash flow. Once again, Mr. Lowry is selectively presenting numbers without providing context in order to paint an inaccurate picture of MARTA’s financial state."

MARTA's 2011 Comprehensive Annual Financial Report can be found as a PDF attached to this article.

Related Topics: July 31 Referendum, Mike Lowry, marta, participate 2012, and tsplost

N8PRTR

3:19 pm on Tuesday, May 29, 2012

Even if Mr. Lowry's numbers are a bit inflated you are still dancing around the fact that MARTA is consistently loosing MILLIONS year after year and that loss will at some point be passed off onto the race payer.

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Mike Lowry

3:24 pm on Tuesday, May 29, 2012

Sounds to me like they are trying to define the problem away. If you examine the project list, TIA‐M‐001 MARTA Train Control Systems Upgrade and TIA‐M‐002 MARTA Elevator and Escalator Rehabilitation Program both sound like operational items to me.

In fact, a "State of Good Repair Capital Project" seems like another term for operational maintenance that hasn't been done.

MARTA and ARC are both stretching the English language to squeeze under the restrictions the legislature put into HB277. This topic is already the subject of a legislator's call for an injunction to stop the vote. That is the "context" for my original post.

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Claire Bartlett

4:31 pm on Tuesday, May 29, 2012

I would like to respectfully request that Ms. Hodgson read the bill (I'll make it easy for her, download HB277 here: http://www.legis.ga.gov/Legislation/en-US/display/20092010/HB/277). The bill states, starting on line 419, that MARTA "shall not be authorized to use any proceeds from the special district transportation sales and use tax for expenses of maintenance and operation of such portions of the transportation system of such authority in existence on January1, 2011."

Then I recommend reading the project fact sheets (under #3 here: http://www.atlantaregionalroundtable.com/). The projects list includes M-009 which is for items such as renovating pedestrian bridges over MARTA to the tune of $92,700,000. Or, as another example, read the description of M-014 which includes things like changing light bulbs, painting canopies, replacing furnishings,and replacing "dated" floor finishes to match the Airport floor finish. This one to the tune of $7,160,000.

Both of these projects are maintenance projects for portions of MARTA in existence prior to January 2011. These two projects alone total almost $100 MILLION in maintenance. In addition to the operational items already cited as M-001 and M-002 which total over $123 MILLION.

It is an embarrassment to the city of Atlanta that MARTA is attempting to bamboozle its taxpayers.

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Steve Brown

5:41 pm on Tuesday, May 29, 2012

Oh my, I would hate to be MARTA spokeswoman Cara Hodgson, having to prop-up that broken system.

It is blatantly obvious that the $600 is going toward maintenance. And we should not consider depreciation in MARTA's performance, are you kidding?

The best line was, "However, "since 2010, ridership has declined due to a number of reasons including high unemployment resulting in some customers no longer riding because they are not going to work as well as transit service cuts and fare increases brought about by the significant economic downturn and lack of a sustainable funding mechanism."

Well, Cherokee, Fayette, Douglas, Henry, Cobb, Rockdale and Gwinnett, you will be that "sustainable funding mechanism" in the future.

To show you how bad it is, "“She [MARTA Gen Manager Beverly Scott] and other officials said the current financial projection left open the possibility that some projects might not be feasible even if voters approved a regional sales [tax] this July that has $600 million for MARTA for maintenance and upgrades for the aging system.” (“MARTA service cuts loom,” AJC, April 3, 2012)

Oh no, the AJC said the "m-word." Their reserves look to be so depleted in future years that they may not be able to use the TIA (TSPLOST) funds for the "m-word." I can only imagine where Dr. Scott will use those funds.

MARTA bus ridership was projected to grow 70% by 2025. They are heading in the opposite direction! The promises the transit project promises?

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