One aspect of the Transportation Investment Act of 2010 that was critical to the bill’s final passage was the creation of a discretionary transportation fund for each local government within a region. In the 10-county Atlanta region, fifteen percent (15%) of the proceeds received from the tax shall be distributed to all of the local governments within the district. In all other regions, twenty-five percent (25%) of the proceeds received from the tax shall be distributed to the local governments within the district.
These percentages are allocated to each local government by multiplying the “LARP factor” of each local government (1/5th Population and 4/5th Centerline Paved and Unpaved Roads) by the total amount of funds to be distributed to all the local governments in the district. The “LARP factor” was defined in the Transportation Investment Act of 2010.
Sample formula: Local share = ((population of jurisdiction/ population of region x .20) + (road mileage in jurisdiction/ road mileage in region x .80) x (.25 x estimated revenues to be collected in the region). Please note that roads within the city limits maintained by the county will count as county roads. Also, state routes and interstates are not included in the mileage calculations.
The proceeds shall be distributed to the local governments on an ongoing basis (potentially beginning in early 2013) by the Georgia State Financing and Investment Commission (GSFIC), which will act as the fiduciary agent for each region’s discretionary fund. The proceeds can be used by local governments on a variety of transportation projects as defined in the Transportation Investment Act of 2010 and may also serve as the local match for state transportation projects and grants.
In an effort to educate and inform local governments on how much discretionary money they can expect, GDOT is providing estimates for each county and city. This estimate is based on three items:
- 2010 Census Data
- 2011 GDOT Local Maintenance and Improvement Grant Data
- State Economist's Base Case Regional Sales Tax Forecast for 2013
Please note that all estimates are subject to change based on population growth, the addition or removal of county or city roads from a jurisdiction’s system, and the actual amount collected by the tax. Additionally, GDOT will not ultimately set the allocation amounts. The actual allocations will be determined and distributed by GSFIC, as per the Transportation Investment Act of 2010.
It is important to keep the information provided by these estimates in perspective. In addition to the potential to change, these local funds represent a fraction of the overall funds that will be raised in each district. However, the benefits each county and city receives from the regional sales tax will depend both on the local distribution and the regional project list that will be created over the next year in each district. Only when coupled together can the benefits to a county or city actually be determined. The goal is to provide each region and the state with benefits that will help drive economic development, improve safety and better manage the transportation network.
Should you find a discrepancy with the mileage reported, please insure that your local agency is in compliance with Georgia State Code 32-4-41(4) and 32-4-91(b) which states that all local governments should notify GDOT within 90 days following the acceptance of a new road. If you are in compliance but still have questions, please contact Tim Christian at tchristian@dot.ga.gov or 770-986-1434. For all other inquiries, please contact Stephanie Carter at stcarter@dot.ga.gov or 404-631-1927.