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GGM is a big-tent organization with top-level leadership. The transportation industry in Georgia is facing a critical issue of decreasing state motor fuel revenues and rising costs for highway and street construction projects. The Federal Motor Fuel Tax, contributing to eroding buying power due to inflation and fuel efficiency improvements, limits funding for transportation infrastructure. New projects exceed budgeted costs, and the condition of road pavements is deteriorating rapidly. The GNC report highlights the challenges and provides data on the state of transportation in Georgia.
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….With Top-Level Leadership Honorary Co-Chairs • Joe Leonard – Chairman, AirTran; Chairman, Metro Atlanta Chamber of Commerce Transportation Policy Committee • Kessel D. Stelling – President and Chief Operating Officer, Bank of North Georgia; Chairman, Metro Atlanta Chamber of Commerce • Charles Tarbutton – Assistant Vice President, Sandersville Railroad Company; Chairman, Georgia Chamber of Commerce Steering Committee • Lee Biola – Citizens for Progressive Transit • Jerry Griffin – Association County Commissioners of Georgia • George Israel – Georgia Chamber of Commerce • Mike Kenn – Georgians for Better Transportation • Stephen Loftin – Regional Business Coalition • Steve Parks – Georgia Highway Contractors Association • Bobby Vickery – C.W. Matthews Contracting Co. • Sam A. Williams – Metro Atlanta Chamber of Commerce
We Have a Problem of Prosperity Percent Growth Percent Growth Source: GDOT
State Motor Fuel Revenues Continue to Decline $5.3 Billion $7.7 Billion $6.2 Billion *
With the continuing rise in cost of highway and street construction, new projects will cost more than originally budgeted 1987 = 100 Source: Bureau of Labor Statistics US Producer Price Index for Highway & Street Construction
Increasing Costs in GDOT Right of Way Make 2003 note small Source: Georgia DOT Source: GDOT (actual 2003 costs were unavailable)
Is the Federal Motor Fuel Tax running out of gas? 18.3¢ Inflation and improved fuel efficiency combine to erode the buying power of the current motor fuel tax because it is levied per gallon. (1) (1) Paying for Roads – New Technology for an Old Dilemma – Paul Sorensen and Brian Taylor (2) (Source: AASHTO, June 2007, Report on Long-Term Financing Needs for Surface Transportation) Between 1993 and 2015, purchasing value from the Federal Motor Fuel Tax revenue will have decreased by 70% (2) 5.5¢ 1993 2000 2007 2015
Annual Transportation Spending Per Capita Source: GDOT & GBT Note: Amounts shown are adjusted for inflation
Roadway Pavement Deterioration 2006 Ratings 2013 Ratings Fair, Poor, Bad 37% Fair, Poor, Bad 84% Excellent, Good 16% Excellent, Good 63% Comparison 2006 – 846 miles or 4.7% state route resurfaced – cost of $144 M 1996 – 1,255 miles or 7% state route resurfaced – cost of $110 M