THE ASHE ADVOCATE – February 23, 2007

Transportation tax alternatives under consideration

By Rep. Kathy Ashe

Recent polls show the public is increasingly supportive of tax referendum measures that are designed to raise money to address transportation issues. At least two such proposals are now under consideration by the House of Representatives.

House Bill 434, targeted to address Atlanta’s traffic problems, would allow two or more counties to introduce regional sales taxes; taxes on Internet, mail-order and out-of-state purchases; or local motor fuel sales to pay for specific transportation construction projects, subject to a popular referendum. HB 442 provides for a statewide 1 percent sales tax for transportation purposes, limited to a 10-year time period.

Supporters of HB 434 – including the Metro Atlanta Chamber of Commerce – said that the measure would be contingent on voter approval at the polls, as would HB 442. They also said Atlanta’s roads can’t handle its exploding population, and the state doesn’t have the funds to fix the problem. HB 434 would let the Georgia Regional Transportation Authority initiate the planning process in the 13-county Atlanta area. Opponents of HB 434 said that the measure would reduce transportation funding for outlying metro Atlanta counties.

The Georgia Department of Transportation is expected to introduce an alternative proposal soon. Lawmakers, DOT members and transportation groups are also reported to be working on a plan to address the state’s broader transpiration needs. Polls show the overall concept of allowing voters to decide on a temporary tax has widespread support among voters.

The State of Georgia's ban on yard trimmings and other compostable items has helped us successfully divert up to 20 percent of these commodities each year from our landfills.  Studies have shown that using yard trimmings and other compostable mulch in highway construction and other transportation maintenance projects can help save water and reduce non point source water pollution. 

That's why I have co-sponsored HR 245, which encourages our state Department of Transportation to use recycled products and compost in its construction and maintenance projects whenever possible. 

The House Banks & Banking Committee, by 17-11 vote, favorably reported HB163, known as the Deferred Presentment Services Act, which would provide for the licensing of individuals who provide deferred presentment services.

Payday lending, or cash advance, uses a post-dated check or electronic checking account information as collateral for a short-term loan. To qualify, borrowers need only personal identification, a checking account, and proof of income from a job or government benefits. The legislature virtually outlawed the concept in 2004.

HB 163 would return the practice of payday lending to Georgia, but in a regulated environment. The bill outlines licensing procedures, and stipulates rules, regulations and penalties for not complying with the act. Supporters said the bill provides clear guidelines for a service that many Georgians need. Opponents said payday lenders cost American families billions of dollars each year in predatory fees, and that the business should be prohibited in Georgia.

The legislation is scheduled to be considered by the full House upon our return to session this week.

Legislation that would have put the retirement income of public employees at risk failed to win approval on the House floor, falling four votes short of the necessary 91. HB 318 would increase the percentage of Georgia’s retirement funds that can be invested in foreign countries that do not support child labor laws, minimum wage standards and environmental regulations

I voted against this proposal. Instead of putting the billions of dollars in our various public retirement systems at risk in shaky and untested foreign investments, the state should instead be investing in Georgia companies and focused on keeping jobs in the state.

• Rep. Kathy Ashe (D-Atlanta) represents the 56th District (Fulton County) in the Georgia House of Representatives. Contact her at 409 Coverdell Office Building, Atlanta, GA  30334; by phone at 404-656-0116 or by e-mail at kathyashe56@mindspring.com.