When the T-SPLOST (1-cent regional sales tax for transportation) referendum was proposed and debated a few years ago before ultimately being defeated by voters in 10-county metro Atlanta and other regions of the state, funding from the tax was to go to help kickstart the Atlanta Beltline project. The Beltline’s parks and greenways are popular, but the proposed funding for transit and the streetcar at over $3.6 billion was simply unaffordable. Critics and voters back then viewed the beltline as a city economic development project rather than something that would have addressed the regional transportation gridlock problem.
More importantly, though, the city of Atlanta’s own feasibility study by professional economists concluded: “The amount of revenue to be generated from the Beltline Tax Allocation District is expected to cover only about half of the funding of what will be needed.” (The Beltline TAD uses a part of city, county and school district money to fund the project.)
All too many refused to heed this wise warning of underfunding, so it’s no wonder that now the Atlanta Public School System may be ripped off by the city if Mayor Kasim Reed continues his “my way or the highway” approach.
Negotiations this week between the city and the Atlanta Public School System again deadlocked regarding a $162 million contract that was to have helped fund the Beltline, a conversion of old rail lines into a 22-mile loop of trails, parks and transit. The conundrum: How does the city of Atlanta settle its Beltline obligation to the school system?
City leaders say the Beltline can’t afford to make the $162 million in payments agreed upon before the recession hit, and they want to overhaul the deal. All of this was predictable. As we’ve noted, concerns were aired during the T-SPLOST debate.
Some members of Atlanta City Council are naturally reluctant to offer up other city assets to pay the debt which the Beltline has fallen behind on. Councilwoman Felicia Moore thinks the Beltline TAD alone should fund the payments. Others aren’t so sure. And the mayor has heatedly attacked the school system negotiator, former Superintendent Erroll Davis, for threatening legal action to resolve the debt.
Allies of Reed are urging him to cool his temper. They feel a compromise had better be reached in a spirit of collaboration, and soon, or it will threaten to damage the mayor’s city political standing (i.e. his vote-getting ability) if he ever wants to run for higher public office. A promise is a promise—and the school system should not be disrespected.
