Resolution of the Mayor and Council Regarding MARTA Tax Increase

Last night the Alpharetta Mayor and City Council unanimously supported a resolution asking members of the Georgia state legislature to allow Fulton County to finish the transportation improvement process begun last year under House Bill 170. It is my understanding that the Mayor and City Council of Johns Creek have also adopted this resolution.

Last year’s House Bill 170 laid out a well designed plan for investing in the diverse infrastructure needs of a county the size of Fulton. The resolution below would preserve that ongoing process while still providing municipalities more flexibility to expand transit within that framework as needed. You can click on the photo below to read the whole thing.

 

Alpharetta SB 330 Resolution_edited-1

Opinion of Mayor David Belle Isle

For months Fulton County mayors have been meeting to negotiate an agreement regarding a transportation sales tax which was authorized in House Bill 170 passed by the Georgia legislature in 2015. Below is a press release issued today by Alpharetta Mayor David Belle Isle regarding the matter.

I support our Mayor’s critical approach to an issue that is vital to the future of our region and our state. I am proud to serve with a man who has the courage to stand up for what we both know is right regardless of which way the prevailing political winds may be blowing. You can click below to view the whole statement.

 

DBI MARTA statement

Legitimate Poll shows Overwhelming Opposition to Rail in North Fulton

Supporters of Georgia State Senator Brandon Beach’s MARTA tax increase bill, SB 313, have made many claims about public support for the legislation. As an elected representative of 63,000 people who live in Alpharetta I know many of those claims are inconsistent with the truth. That is why I am pleased to release the findings of an objective, statistically valid poll which demonstrates the people of North Fulton overwhelmingly oppose such a tax increase for the purpose of extending heavy rail in the region.

Legitimate Poll shows Overwhelming Opposition to Rail in North Fulton

Voters in the 5 major cities of North Fulton county have spoken and oppose a massive tax increase to support a Marta heavy rail extension.  When presented with a reasonable and accurate set of facts, the poll showed a clear landslide rebuttal.  Women opposed the tax increase and rail line by almost 63% and Republicans by almost 69%.  Democrats also opposed by a slim majority and African-Americans opposed by over 66%.  All age demographics were a majority against the tax increase and rail line. The poll was conducted by Landmark Communications a respected, non-biased firm.

 

Landmark MARTA poll

A decision of this magnitude deserves better

In an earlier post I wrote about my experience at the state capital last week. For more background you should also read this article about the hearing at GeorgiaPol.com.

As I testified at the senate hearing Senator Beach commented, “We can disagree without being disagreeable” and I couldn’t agree more. That is why some of the comments made by him and others supporting his 50% MARTA tax increase are so troublesome.

That doesn’t make sense to Beach. MARTA’s opponents, he said, are desperate for solutions. “Some of the politicians are saying, well, nobody is going to use it, and then in the next sentence they’re saying it’s going to create so much congestion coming into it. Well, you can’t have it both ways. If you’re going to have all this congestion, you’re going to have ridership. Just tell me one or the other.”

“The politicians are scared to death” of MARTA expansion, Beach said in an interview earlier this week.

What a perfect example of heavy rail supporters insulting their opponents and misleading the public without addressing the facts laid out by their opposition. Senator Beach’s assertion that politicians say, “nobody is going to use it” is just false hyperbole.

I have never heard it said by any opponent of heavy rail. However I have repeatedly pointed out that the U.S. Census shows only 2% of Fulton County residents ride heavy rail to work.

Yet while Senator Beach’s assertion that politicians say “nobody” is going to ride MARTA is false, his assertion that some say it’s going to cause more congestion is true and supported by facts.

Only 5% of the people who live in the zip code surrounding the North Springs MARTA station in Sandy Springs use heavy rail to get to work.

Commute chart Sandy Springs

And since only 846 people who live within walking distance of the station take trains to work MARTA had to build enormous parking garages. Why? Because most of the people who ride the trains have to drive cars to the station.

That is why rush hour traffic around North Springs is so bad the state of Georgia is spending a billion dollars trying to fix the problem while Sandy Springs is considering building monorails and the Perimeter CID is designing ways to expand surface streets to accommodate more cars, buses and trolleys at taxpayer expense.

So when Mr. Beach demands to know whether it is “one or the other” the response is “the other” because no politician says nobody will ride MARTA trains. Instead informed politicians say that while a small group of people around train stations will ride them the overwhelming majority of riders are forced to drive cars to the station making traffic worse.

Which means a bill dictating MARTA must expand using expensive, inflexible heavy rail lines along GA 400 will force commuters to crowd surrounding streets exacerbating congestion. The only public transportation that can effectively address existing congestion issues while improving economic development opportunities is Bus Rapid Transit (BRT).

The people of North Fulton are tired of congestion on the arterial roads and surface streets around GA 400. Of course other people have a vested interest in making sure transit forces people to visit the Georgia 400 corridor.

That’s why it was perfectly reasonable for Senator Beach to sponsor Senate Bill 313. Senator Beach is President of the North Fulton Community Improvement District (CID) a tax district created specifically to increase the property values of commercial properties along GA 400.

Understanding that, it makes sense for Senator Beach to pretend that North Fulton is doomed if taxpayers don’t spend billions of tax dollars to extend heavy rail into the CID there. No law forces political decisions to be decided on objective facts. So if Senator Beach supports a regressive tax increase which takes money from single moms in East Point to build train stations on three properties within the North Fulton CID it is perfectly fine. Even if it doesn’t seem fair, it’s good business for the CID.

Which is why it was also perfectly reasonable for Mr. Mark Toro to speak in favor of Senator Beach’s MARTA tax increase. Mr. Toro is a partner in North American Properties, the company now selling their Avalon mixed use development in Alpharetta. If Avalon is worth $500 million now it should be worth tens of millions more with a MARTA station. That’s just good business.

That’s the same reason Mr. Toro was a vocal supporter of the failed Tsplost tax that would have brought heavy rail to Atlantic Station in 2012. Now that North American has sold Atlantic Station and has Avalon on the market it is no surprise he supports a bill forcing Johns Creek retirees to pay for a MARTA station there.

And if Mr. Toro has to tell people who live in the City of Atlanta that objections to Senator Beach’s proposal are based on “racism” and a “bunch of old white guys”… so be it. If that’s what it takes to convince minority taxpayers in Atlanta they should pay for a 2.4 billion dollar amenity in the North Fulton CID, that’s just good business.

But the truth is that most elected officials in North Fulton support expanding some form of transit. Objections to Senator Beach’s 50% MARTA tax increase are not based on racism, irrational fears or muddled thinking but on sound reasoning and fiscal responsibility.

SB 313 diverts billions of dollars from efforts to build a sustainable transportation network that can support a vibrant region and directs them to an overpriced, inflexible mode of transportation that primarily benefits the commercial properties like Avalon within the North Fulton CID. To characterize principled, informed opposition to Senate Bill as irrational fear or uninformed reactionary politics is insulting.

A decision of this magnitude deserves better.

 

Comments about the SB 313 Hearing

I commented on an article at GeorgiaPol.com about a hearing I attended regarding Senator Brandon Beach’s 50% MARTA tax increase proposal. It’s the best article I have seen about the meeting and you should read the whole thing here.

I am including my comment below for readers here.

I appreciate your coverage of the event but am disappointed by your characterization of this discussion as “histrionics”. While there were some jabs taken by both sides at Senator Albers’ hearing there were also a lot of facts and objective analysis presented.

The population of the City of Atlanta was 496,973 in 1970 and MARTA was created the next year. By the 2010 census the City of Atlanta’s population had declined to 420,003 residents while the population of the surrounding metropolitan areas increased by more than 3 million.

For 45 years an outdated transit plan concentrated on a stagnant urban core received billions of dollars in sales tax revenues while booming areas of growth have been starved of money for burgeoning infrastructure needs. Senator Beach’s 50% MARTA Tax increase proposal compounds that error and makes it worse by cementing it in place for another 50 years.

North Fulton is booming and Alpharetta has attracted thousands of new jobs over the last few years despite claims of impending doom by Senator Beach and Mark Toro. The greatest threat to that success is the congestion on our surface streets, arterial roads and GA 400. Senator Beach’s plan would do nothing to address our needs would make it even more difficult for cities to address them.

The legislature tried to address that problem with HB 170 last year which allowed Fulton County to levy an additional 1% sales tax to be distributed among its municipalities for those crucial infrastructure needs. Senator Beach’s tax increase bill complete destroys that framework by cutting the funds available to cities and increasing the MARTA tax by 50% for so long that the Millennial generation will be on Medicare by the time it expires.

SB 313 would cost the City of Alpharetta alone nearly $42 million dollars over the 5 years permitted currently. The cities of North Fulton combined would lose a total of $251 million dollars to MARTA. That is money that could address immediate needs and required to be allocated for projects which can be completed or substantially begun within 5 years. But under Senator Beach’s bill that $251 million would be diverted to MARTA projects dependent on receiving billions of dollars from the federal government and under the best of circumstances would not even be through the environmental studies phase in 5 years.

And as I stated along with several other speakers including Mr. Feigenbaum, the only credentialed transportation expert to testify, Bus Rapid Transit is the only transit method which makes any sense in low density suburban areas like North Fulton. Curiously HB 313 actually designates the cheaper, more efficient BRT for expansion in Dekalb County but there has been no explanation for the extra billion dollars it would cost to use heavy rail in Fulton.

For those wondering where the tax revenue projections I use come from they are the numbers compiled by Fulton County for HB 170 negotiations among the cities.

Caution Recommended on Sales Tax Increase for Rail Transit

The Georgia Public Policy Foundation has published an analysis of the proposed tax increase being pushed by State Senator Brandon Beach to fund MARTA heavy rail expansions. You should read the whole article by Baruch Feigenbaum here but I will highlight a few of the most critical points here as well.

The north Fulton corridor, in contrast, has a population density of approximately 1,500 people per square mile, far too low to support rail.

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Given the high cost of expansion of rail and the corridor’s low population and employment densities, a bus rapid transit/express bus line using SR 400’s soon-to-be-constructed express lanes would be a much better option.

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Increasing the sales tax is also regressive; it harms low-income riders who depend on transit the most.

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Rail systems, which are hub and spoke, are designed to transport workers from suburban regions to downtowns. But many metro Atlanta jobs are in the suburbs and most workers commute from suburb to suburb. Many residents of North Fulton commute to the Cumberland area, North DeKalb area or other job centers without rail service. Expanding the rail line is no benefit to all these workers.

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North Fulton could have BRT connections to East Cobb, North DeKalb, Southwest Gwinnett, South Forsyth, and Southeast Cherokee counties. Rail is estimated to be 16- to 22 times the cost of bus rapid transit, which means that for one MARTA heavy-rail expansion we could provide 20 high quality bus rapid transit expansions.

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New transit technology is likely to revolutionize transit service over the next 30 years. Many Millennials are substituting ridesharing services such as Uber and Lyft for traditional fixed-route transit. Autonomous vehicles while still in the development stage, are likely to revolutionize transit service and land use. While quality mass transit service is important today, policy makers should build a system that has the flexibility to evolve with new technological developments.

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A new quarter-penny sales tax for transit could build one heavy-rail extension that would lock up transit funding and lock in an aging technology for the foreseeable future and take more than 100 years to pay off. Alternatively, the same funding could implement a network of high-quality express bus and bus rapid transit service across North Fulton County.

Any objective analysis shows that Senator Beach’s proposed tax increase for heavy rail would be a tremendous misallocation of resources in a time when transportation dollars are too hard to come by already. What a shame.

MARTA sales taxes & Alpharetta property taxes

Sales taxes can be useful but they can also be an insidious method of taxation because it is so difficult for individuals to recognize the full cost. As discussed in this previous post the current MARTA tax in Fulton County amounts to $265 million a year and since there are about a million residents in Fulton it works out to a tax of about $265 per every man, woman and child.

If every person who lives in Fulton County was forced to write a check for their MARTA subsidy the 98% of people who rarely ride transit would be outraged. Even many of the 2% who actually ride heavy rail to work would complain about the $265 bill.

Imagine if a mother and father living in Alpharetta with two young children opened their mailbox to find a bill for their family’s $1060 share of the MARTA subsidy. But that would never happen because if it did heads down at the Gold Dome would roll faster than Richard Petty at Daytona.

But if diapers cost thirty cents more, each trip to the grocery store costs $2 more, the new refrigerator costs an extra $20 and 1% of everything else a family buys all year long adds up to $1060 they will probably never notice. It’s just a penny, right? That way MARTA gets $265 million a year and politicians get to keep their heads.

But when it comes to local property taxes people do get a bill in the mail each year. So for comparison’s sake let’s take a look at the size of Fulton County’s current 1% MARTA sales tax compared to the property taxes paid by the people of Alpharetta.

The 2016 budget for Alpharetta estimates property tax revenues of $18.8 million. With a population of 63,000 that works out to about $298 a year for every man, woman and child living in the city. The current MARTA sales tax costs about $265 per person in Fulton County. That means the property taxes in Alpharetta are only about $33 more than the cost of MARTA taxes to our average resident.

But if State Senator Brandon Beach’s 50% MARTA tax increase is enacted the cost per Fulton resident would skyrocket to almost $400 per person or $1600 for a family of four. Which means the average cost of MARTA taxes per Alpharetta resident would be $100 more a year than their property taxes.

Property taxes pay the salaries of the men and women in police cars and fire stations who work around the clock, 365 days a year to keep families, homes and businesses safe. Property taxes keep Alpharetta roads paved and traffic signals working. Local property taxes pay for nationally recognized recreation programs and parks that include an 8 mile Greenway lying along the shady banks of Big Creek.

Municipal property taxes pay a major portion of everything it takes to make Alpharetta one of the greatest places in the world to raise a family and do business. Yet if Senator Beach’s sales tax hike is enacted the average share of property taxes per resident would cost $100 less than what is collected to pay for MARTA services that only one person out of hundred people even use.

Put another way, if a $400 per person MARTA tax was distributed to the cities of Fulton County every year to cover essential services like police, fire departments and roads the City of Alpharetta could completely eliminate property taxes and have $6 million left over for transportation improvements. Now that would be a boon for economic development in North Fulton that MARTA could never provide.