MSPLOST & The Transit Boondoggle
Your voice matters, and it's crucial to be informed about the upcoming 2024 ballot initiative for a special 1% sales tax lasting 30 years and beyond- the MSPLOST. The proposed $10.9 billion expenditure is not just a penny; it's a long-term commitment that deserves careful consideration. VOTE NO!
Here are some important Transit facts to consider:
Current Losses and Minimal Ridership:
This is NOT a SPLOST tax as you currently know it, which has to be spent 100% on capital improvements (roads, bridges, buildings, equipment, infrastructure improvements, etc.). MSPLOST is a special designation passed by the state legislature for Transit systems that can also fund the operating costs (salaries, pensions, insurance, etc.) and losses associated with Transit projects. The current Transit system loses 89.6% of every dollar invested on the system to put that in perspective.
The 2024 Cobb Mass Transit operates on a $28.9 million yearly budget, with an average annual loss of over $24 million that must be covered with $21 million out of the General Fund and an additional $5+ million from grants and 'other sources' (whatever they are). The 2025 budget has risen an astronomical $9 million, or 31%, in one budget cycle. Imagine what the future losses will look like!
Shockingly, the system records less than 1 million paid fares per year which generates only $2.5 million, translating to less than one ride per resident annually. This results in a staggering loss of $26 million (89.6% of the budget), making the current model unsustainable.
Changing Dynamics and Questionable Future:
Nationally, bus ridership has fallen for the past 7 years nationwide as well as in Cobb county. Even post-Covid, ridership remains lower than before Covid.
The landscape of work and living is evolving, raising concerns about the relevance and sustainability of current mass transit methods. The American Community survey cites that "transit use among low-income workers is declining, while transit's major growth market is among high-income workers"
The same study cites "that people in every income class below $25,000/year are decreasing their use of transit for getting to work...meanwhile, people earning more than $65,000/year were more likely to commute by transit". These trends are likely to continue.
Unsustainable Tax Burden:
The proposed operating budget for this expansion may be at least $233 million annually for 30 years. If scaled up, this could lead to a massive yearly loss of at least $150 million, a burden to be borne by this new sales tax.
Misleading Narrative:
While some on the BOC emphasizes the MSPLOST as 'just a penny', it's essential to recognize that this is a penny on every sales-taxed dollar spent for 30 years! The undisclosed (and not even estimated) shortfall from the General Tax fund will be a burden for the next 30 years. The BOC has publicly stated that this MSPLOST will cover the losses going forward, but how can they know that?
There are currently only 12 Cobb bus routes, and yet they say that ridership will increase 10-12 fold while they are only adding 12 new routes. How can anyone believe that?
Ineffective Solution for Low-Income Assistance:
The BOC argues that this massive transit expansion helps low-income individuals. However, there are more cost-effective solutions, such as providing discounted Uber or Taxi vouchers, smaller vehicles, etc. that can address the needs of those that need help.
The statistics in the CATO institute report (link attached below) go into more detail regarding this trend.
All of us realize that some folks in our society need help with mobility issues. We are compassionate folks that simply think there is a better, more cost-effective way to help those in need. This boondoggle is simply not the answer.
Preserving Suburban Lifestyle:
Contrary to claims that a better mass transit system will attract youth to Cobb, many residents appreciate our suburban lifestyle. If a high-density, urban environment is desired, Atlanta offers that experience.
Don't be fooled by the "Transit" and "Mobility" phrases they use to sell you this idea. This is simply a bigger, glorified expansion of the bus system, not some magical light rail project or great technological upgrade.
Stay Informed:
For a comprehensive perspective on Mass Transit past, present, and future, consider exploring the CATO Institute's insightful study using the link below.
Your Vote Matters!
Make an informed decision and VOTE NO on the MSPLOST. Let's preserve our community's values and fiscal responsibility.
Interesting StudIEs
CATO Institute study
Following is the link to the CATO Institute study which is referenced multiple times in this section.
National Association of Counties Study
Following is a PDF to an interesting study done by the National Association of Counties (NACo) which champions first mile and last mile ride sharing opportunities to increase ridership on existing transit systems.