Friday, August 23, 2002

Northern Arc lawsuit could endanger Fulton transit projects

Officials with the Northern Arc Task Force, Inc. held a press conference Monday to announce they have filed a legal intervention in bond validation proceedings in order to stop the State Road and Tollway Authority (SRTA) and the Georgia Department of Transportation (GDOT) from unconstitutionally issuing $822 million in bonds ­ the largest bond issuance in Georgia's history.

NATF officials outlined the Constitutional violations in the legal intervention filed in Fulton County Superior Court on Monday, August 19, 2002, citing a specific 1972 vote by the people of Georgia that prohibits by constitutional amendment the type of bond being proposed by the state in this case.

Jeff Anderson, President and co-Chair of the Northern Arc Task Force, stated "The last I knew, there were three branches of government. This illegal process circumvents the people's voice in determining how debt is incurred. Through this lawsuit, we are asking our judicial branch to enforce our State Constitution. It is time for the State to be reminded of just who controls our collective destiny and that our State employees are paid to execute the will of the people".

The NATF intervention maintains that this $822 million bond is unconstitutional, illegal and a clear abuse of the democratic process. It says that in 1972, the people of Georgia voted to amend the State Constitution to specifically and expressly prohibit the type of financial manipulation being proposed in this bond issue, but instead of being approved by the entire General Assembly - as required by law - this $822 million bond was authorized by just 22 public officials, only five of whom are elected by the people. The NATF says, "This funding scheme creates massive bond debt for Georgia and excludes its citizens from the decision-making process by circumventing the General Assembly's sole authority to authorize State debt."

"This is the first time this scheme has been used in a bond issuance, and we must stop this unconstitutional funding manipulation dead in its tracks," said Gerry Conway, co-chair of the NATF. "It is the first part of over $5.7 billion in bond debt to be requested. This is also the same funding mechanism that the governor wants to use, at least in part, to finance the northern arc. It sets a dangerous precedent from which there is no return."

The NATF also maintains that the contract to transfer funds from GDOT to SRTA in this bond issue is specifically prohibited by the Georgia Constitution. In 1972, during then Governor Jimmy Carter's Administration, the people of Georgia amended the state Constitution as follows: "Shall the Constitution be amended so as to prohibit State institutions, departments and agencies from entering into any contract with any public agency, corporation or authority which such contract is intended to secure debt of such agency, corporation or authority" See Ga. Laws 1972, pp. 1523, 1532. Thus, according to NATF, the people of Georgia in approving the above ballot language specifically rejected the financial manipulation underlying the Series 2002 bonds at issue in this case.

"For a bond issue of this historic magnitude and the additional $5 billion in bond debt planned by this administration, approval by the General Assembly, as the people demanded in 1972, must be sought," said Bob Campbell, NATF Director of Legal Affairs, one of the two interveners filing the complaint. "We, as citizens, are outraged by this clear abuse of power. To conduct the people's business without the democratic process of debate and voting in the General Assembly is simply incomprehensible. It is time for the Governor to stop running his own private DOT".

Additionally, Anderson commented, "We're not sure why Speaker of the House, Tom Murphy, had the lone dissenting vote at the Georgia State Financing and Investment Commission meeting held last month, but after a thorough review of this unconstitutional and illegal process, we agree with his vote. It is likely that the taxpayers of Georgia may eventually be on the hook to pay for these illegal bonds; in effect this becomes taxation without representation."

"Given the current financial condition of the State of Georgia, it is even more critical that the General Assembly reviews and approves our spending priorities before we incur tremendous additional debt," said Bob Charles, Vice President of NATF. "It is outrageous that senior state officials would undertake a financial scheme of this magnitude when it has been expressly prohibited by the people of the State of Georgia. It seems strikingly similar to the recent Enron and WorldCom scandals."

About the Northern Arc Task Force:

The Northern Arc Task Force, Inc. (www.natf.com) is a non-profit grassroots concerned citizens' organization founded in January 2002 that opposes construction of the controversial Northern Arc - a proposed 59-mile limited access east/west super highway planned to connect I-75 in Bartow County with Hwy. 316 in Gwinnett County. NATF is dedicated to preserving the quality of life for all Georgians by promoting proper planning and responsible use of taxpayer dollars for transportation improvements.