Lawsuit challenges transportation funding plan

ATLANTA - A lawsuit filed by opponents of the proposed Northern Arc challenges an $822 million bond issue to finance Georgia highway projects.

Although the tollway north of Atlanta has been put on hold by Gov. Roy Barnes and is not among the projects, those who filed the suit said the state plans to finance the Arc with similar bonds.

Projects that could be halted by the suit include a commuter rail line between Macon and Atlanta, freeway HOV lanes in metro Atlanta, a regional bus system and plans to repay bonds spent on the Governor's Road Improvement Program (GRIP), a list of new roads around the state designed to spur economic development.

The suit filed Monday in Superior Court here contends that the method of financing the bonds is prohibited by a 1972 amendment to the state Constitution.

To pay off the bonds, the State Road and Tollway Authority would use anticipated federal grants to the state Department of Transportation.

Former Attorney General Michael Bowers, who represents Northern Arc opponents, said the amendment prohibits any state department from entering into a contract designed to secure debt for any state authority.

The governor's spokeswoman, Jocelyn Baker, said some of the state's best bond attorneys have worked on the transportation plan.

``We're confident there is nothing illegal or inappropriate about that plan,'' Baker said.

The tollway authority's executive director, Jim Croy, said he expects the bonds to win court approval. The case is to be argued before a judge on Sept. 4.

An appeal of the court's decision is likely, regardless of the outcome. That would push public debate over the governor's transportation plan and its funding into the fall election campaign.

Opponents of the planned $2.2 billion, 59-mile tollway known as the Northern Arc intervened to prevent the bond issue from setting a precedent for future bonds.

``Without our intervention today, this type of illegal scheme would set a dangerous precedent permanently silencing the choice of the people and saddling future generations with extraordinary debt,'' said Bob Campbell, a director of the Northern Arc Task Force.

Campbell said the state is planning to use a similar funding method for the Northern Arc.

Critics of the bond issue say problems can arise if the state should receive less federal funding than anticipated. Virginia and New Mexico have had problems using similar types of bonds.

A portion of the $822 million bond issue was to be used to repay $300 million in short-term bonds the agency used to jump-start work on rural highways. Croy said the road and tollway authority is looking at other ways to repay the $300 million, which must be done within a year, if the state cannot get the larger bond issue sold before November.