The Georgia General Assembly Friday ended its 2009 regular session without agreement on new funding for transportation projects as well as measures that would have helped the state's largest transit agency with its budget problems.
The Metropolitan Atlanta Rapid Transit Authority had asked lawmakers for permission to use a portion of its $65 million capital reserve account to fund a portion of a projected deficit in its operations budget.
Despite implementing cost containment measures, MARTA said the severe downturn in the economy and declining sales tax and fare receipts leaves it with a projected $24 million shortfall in its fiscal 2010 operating budget, as well as potentially greater deficits in later years.
On Monday, MARTA's board urged Gov. Sonny Perdue and lawmakers to call a special session to deal with transportation funding issues.
"I can't emphasize enough how critical it is that MARTA be allowed flexibility to use its reserve account to fund operation of the system," board chairman Michael Walls said in a statement. "Without the ability to access the capital funds, we will be forced to make such drastic cuts that greatly impact the economic vitality and quality of life in our region and state."
On April 28, MARTA officials plan to present a fiscal 2010 budget that will include mandatory two-week furloughs for non-union employees as well as deferral of merit increases and increased health care contributions, and reductions in expenses such as advertising and travel.
The board also expects to consider reduced operations, including eliminating some bus and rail services, canceling some special event services, and hiking fares and long-term parking fees.
A Perdue spokesman said calling a special session was premature because the governor had not received information about MARTA's funding problems, according to a report in the Atlanta Business Chronicle.
MARTA had $1.5 billion of debt outstanding as of June 30, according to the agency's 2008 comprehensive annual financial report. The agency sold $390 million of sales tax revenue bonds in September 2007 that were rated Aa3 and AA-plus by Moody's Investors Service and Standard & Poor's, respectively. The bonds were insured by Financial Security Assurance Inc.
