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Post subject: SR 821 Amend the GA Constitution for unfunded transportation
Posted: Tue Jan 26, 2010 10:19 pm
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From the ACCG Page:
Quote:
This constitutional amendment gives the Department of Transportation an exception to the constitutional requirement that state agencies have "cash-in-hand" prior to letting contracts. The department could enter into multi-year construction agreements and rely on future anticipated funds to pay for future phases of projects.
I guess we can gripe about the Democrats borrowing on our grandchildren but now we introduce this. You can track it here: SR 821
The Full bill as introduced:
Quote:
10 LC 28 4921
Senate Resolution 821 By: Senators Shafer of the 48th, Mullis of the 53rd, Rogers of the 21st, Williams of the 19th, Thompson of the 33rd and others
A RESOLUTION
Proposing an amendment to the Constitution so as to authorize the General Assembly to allow the Georgia Department of Transportation to enter into multiyear construction agreements without obligating present funds for the full obligation to the state under the full term of such agreements; to provide for procedures, conditions, and limitations; to provide for the submission of this amendment for ratification or rejection; and for other purposes.
BE IT RESOLVED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.Article VII, Section IV of the Constitution is amended by adding a new Paragraph to read as follows:"Paragraph XII. Multiyear construction agreements. The General Assembly may by general law authorize the Georgia Department of Transportation to enter into construction agreements without obligating present funds for the full amount of obligation the state may bear under the full term of any such construction agreement. Any such agreement shall provide for the termination of the agreement in the event of insufficiency of funds and shall limit the payments or other obligations of the state to not more than ten fiscal years. For the purposes of calculating fiscal years, any portion of a fiscal year shall count as a complete fiscal year."
SECTION 2.The above proposed amendment to the Constitution shall be published and submitted as provided in Article X, Section I, Paragraph II of the Constitution. The ballot submitting the above proposed amendment shall have written or printed thereon the following:"( ) YES
( ) NO Shall the Constitution of Georgia be amended so as to allow the Georgia Department of Transportation to enter into multiyear construction agreements without requiring appropriations in the current fiscal year for the total amount of payments that would be due under the entire agreement so as to reduce long-term construction costs paid by the state?"
All persons desiring to vote in favor of ratifying the proposed amendment shall vote "Yes." All persons desiring to vote against ratifying the proposed amendment shall vote "No." If such amendment shall be ratified as provided in said Paragraph of the Constitution, it shall become a part of the Constitution of this state.
Post subject: Re: SR 821 Amend the GA Constitution for unfunded transportation
Posted: Wed Jan 27, 2010 3:57 pm
Joined: Fri Jul 17, 2009 8:34 pm Posts: 369 Location: Rising Fawn, GA
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I'll mention this tomorrow night at the TEA party. I might call on you to explain it if anybody wants a further explanation.
_________________ Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. .. those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. C.S. Lewis
For the moment, the state Department of Transportation is holding fast to its decision last week to reverse a change in its accounting practices, in defiance of the state auditor.
The board held a special meeting Thursday to revisit the issue, but after an hour of contentious debate, DOT Board Chairman Bill Kuhlke failed 8-3 to get the board to rescind the vote it took last week.
The board did make it official to delay the reversal until July 1. DOT is seeking an opinion on the issue from the state Attorney General, Thurbert Baker, which board members hope to have before July 1. If Baker tells them to stop, the issue would apparently be moot.
Last week’s vote could affect how and when DOT spends hundreds of millions of road work dollars.
The state auditor’s office in reports over the last two years said that DOT was illegally booking revenue it couldn’t book yet, enabling it to spend more than it really should. The auditors declared DOT in a huge deficit, and road spending slowed to a trickle.
Kuhlke argued that even if the accounting change were delayed to July 1, the cloud hanging over the department’s head could hurt Georgia’s bond rating and cost it money in higher interest rates. Board Member David Doss replied that even after the auditor’s searing reports publicized DOT accounting troubles, Georgia’s bond rating had remained stellar.
“Why can’t we just wait [to authorize the reversal], and if we get the A.G.’s opinion, and if it’s in favor, then we begin to implement it?” Kuhlke asked.
“We have been wrestling with this issue for 22 months,” Doss said. “It has put thousands of Georgians out of work.”
Post subject: Re: SR 821 Amend the GA Constitution for unfunded transportation
Posted: Thu Jan 28, 2010 11:03 pm
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And it even gets better. Look at what he sponsored last year. Unbelievable. http://www.legis.ga.gov/legis/2009_10/sum/sb19.htm SB 19 - Road/Tollway Authority; contracts with Dept. of Transportation; provide authorization; better management of their respective finances The summary: A BILL to be entitled an Act to amend Code Section 32-10-63 of the Official Code of Georgia Annotated, relating to powers of the State Road and Tollway Authority generally, so as to provide authorization for the State Road and Tollway Authority to enter into certain contracts with the Department of Transportation for the better management of their respective finances; to provide for related matters, to provide for an effective date; to repeal conflicting laws; and for other purposes.
The meat of the change can you follow the money?
(15) To enter into intergovernmental agreements with the department for the better management of their respective finances, including, without limitation, design and construction contracts under which the authority agrees to provide contingent financing for projects by promising to borrow and provide money to the department as and when needed to expend on projects that are the subjects of the design and construction contracts which the department may reasonably expect to finance through future revenues derived from other sources; and
Post subject: Re: SR 821 Amend the GA Constitution for unfunded transportation
Posted: Fri Feb 12, 2010 1:52 pm
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Today Speaker of the house Ralston said this at the Atlanta Press Club:
Quote:
Earlier today, in a speech to the Atlanta Press Club, Speaker Ralston took on the State Transportation Board, which has a lot of power over highway projects. Ralston proposed a constitutional amendment to limit the terms of D-O-T board members.
"You’ve got a board over there that’s defying the law, and continuing to resist change," said Ralston. " And so I think the only way that we can bring that accountability is through these kind of changes."
The D-O-T board recently infuriated state leaders when it adopted an accounting system the state auditor said was illegal. Last week, the board reversed itself and scrapped that decision.
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