Notes from the Senate

This week we will review FY08 budget requests from agencies within the Senate Economic Development Sub-Committee of Appropriations. Others will follow.

DEPARTMENT OF TRANSPORTATION

Where the Department of Transportation (DOT) Gets State Funds

Under state law, two taxes are collected on motor fuels. The first tax is a 7.5 cent per gallon excise tax that is charged to distributors. There is a second motor fuel tax that is a 4% sales tax based on motor fuel prices. The current sales tax is just over 5.7 cents per gallon. Of the 4% Sales Tax on fuel, 1% goes to the State General Fund. The remaining 3% plus the 7.5 cent excise tax all goes to fund roads and bridges. The DOT is budgeted $862 million from these two sources for FY2007.

Department of Transportation Requests

The Department of Transportation(DOT) has requested over $95 million in motor fuel funds to match over $164.4 million in potential federal highway funds for transportation and an additional $119,569,000 for capital outlay projects for FY08. The

$164.4 million in federal highway funds are available due to the continuation of the Surface Transportation Bill called the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users(SAFETEA-LU). SAFETEA-LU, which is in its second year of a six year phase, will assist Georgia in improving safety and reducing traffic congestion. The capitol outlay projects DOT requested includes the following:

 A directive by the U.S. Corp of Engineers to raise dikes at 3 disposal areas and for the consolidation of 2 disposal areas for the Savannah Harbor area for $6,574,000.

 Phase II project for $4,800,000 to complete the rehabilitation of the rail project for the Heart of Georgia Railroad Midville to Kirby line that was partially funded in FY07.

 A project to rehabilitate the Chattooga and Chickamauga Railroad between Summerville and Rossville for $715,000.

 A project to rehabilitate the Georgia Southwestern Railroad between Cuthbert and Lynn for $3,850,000.

 Phase II project to rehabilitate the Georgia and Florida Railroad between Valdosta and Willacoochee for $3,630,000.

 $100,000,000 for the Governor's Fast Forward Program to reduce congestion.

In addition to the motor fuel and capitol outlay requests, DOT is requesting an additional $647,433 in state general funds for an anticipated property tax increase and legal fees for the Savannah Harbor dike disposal are in Jasper County, South Carolina. In FY07, DOT received $109,000 to cover the estimated property taxes of $552,000. Yet, the property taxes for FY08 is estimated to increase to $700,000. South Carolina has also informed DOT that they intend to condemn a portion of property in the Savannah Harbor sponsored by DOT for the federal navigation channel that provides dredged material disposal areas to the U.S. Corp of Engineers. DOT estimates that legal fees to fight the condemnation suit are estimated to be at $500,000.

I want to hear from you! I may be reached at 234 State Capitol, Atlanta, GA 30334 (404) 656-5038 (phone) (404) 657-7094 (fax) e-mail at Jack.Hill@senate.ga.gov or Call Toll-Free 1-800-367- 3334 day or night. Reidsville: (912) 557-3811

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