Strategic plan [2013]

October 2012

www.camsys.com

FY 2015 Strategic Plan Update
Organizational Performance Management Georgia Department of Transportation

Table of Contents
Executive Summary ................................................................................................ ES1-2 1.0 Introduction ............................................................................................................ 1
1.1 Focusing on Agency goals ............................................................................ 1 1.2 From Strategic Planning to Asset Management ........................................ 2 1.3 Linking to Georgia's Strategic Priorities .................................................... 3 2.0 Strategic Plan Development ................................................................................ 5 3.0 Mission, Vision, Core Values .............................................................................. 7 3.1 Vision............................................................................................................... 7 3.2 Mission ............................................................................................................ 7 3.3 Core Values..................................................................................................... 8 4.0 Goals and Objectives ............................................................................................ 9 5.0 Strategies ............................................................................................................... 13 6.0 Environmental Scan ............................................................................................ 18 6.1 Demographics .............................................................................................. 18 6.2 Economic Indicators .................................................................................... 20 6.3 Legislation..................................................................................................... 25 6.4 Fiscal Indicators ........................................................................................... 26 6.5 Workforce Trends ........................................................................................ 27 7.0 Summary ............................................................................................................... 30
i

List of Tables
Table 4.1 Adopted Goals and Objectives................................................................ 10 Table 5.1 Goals and Strategies.................................................................................. 13
iii

List of Figures
Figure ES.1 Strategic Plan Strategy Map....................................................................... 2 Figure 1.1 Relationship between Strategic Planning, Performance
Management and Asset Management..................................................... 3 Figure 1.2 Georgia Strategic Planning Process .......................................................... 4 Figure 4.1 Strategic Plan Strategy Map....................................................................... 9 Figure 6.1 Georgia's Population Growth, 1970-2010. ............................................. 19 Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. ............... 20 Figure 6.3 Jobs Growth, Georgia Compared to the U.S ......................................... 21 Figure 6.4 Unemployment Rate, Georgia Compared to the U.S., 2000-2012. ..... 22 Figure 6.5 Georgia GDP Growth Compared to the U.S. ........................................ 23 Figure 6.6 Real GDP Per Capita, 1997-2011 ............................................................. 23 Figure 6.7 Structure of the Georgia Economy Compared to the U.S., 2011 ........ 24 Figure 6.8 Georgia DOT Revenues............................................................................ 26 Figure 6.9 Average Appropriations from FY 2008 to FY 2011 .............................. 27 Figure 6.10 Georgia DOT Employees.......................................................28
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Executive Summary
The Georgia Department of Transportation (Georgia DOT) recognizes the value of strategic planning and regularly updates its strategic plan to reflect the current priorities of the department. Strategic planning establishes an accountable framework that supports the agency's actions and makes clear to citizens what the agency does and why. Georgia DOT is committed to conducting business efficiently, communicating openly and collaborating effectively with its internal and external partners. This plan identifies the challenges, risks, and opportunities Georgia's transportation system will face in the coming years, and the strategies the department will use to maintain a safe and efficient transportation system. The Strategic Plan guides the department's priorities for the next three to four years. It provides a broad roadmap, outlining where the agency currently stands, what it wants to look like in the future, and what actions it must take to get there.
LINKING TO GEORGIA'S STRATEGIC PLAN
The Georgia DOT Strategic Plan is not done in isolation from other planning activities in the State. The Georgia DOT Strategic Plan has been prepared to be consistent with the State's Strategic Plan. The vision for the Georgia State Strategic Plan, developed by Governor Nathan Deal, is "A lean and responsive state government that allows communities, individuals and businesses to prosper." The plan identifies six strategic goals in the areas of education, mobility, economic growth, health, safety and responsible and efficient government. Georgia DOT, like all state agencies, has a role in implementing the state strategic priorities and in linking the state strategic plan to the Georgia DOT Strategic Plan. Building from Governor Deal's priorities, Georgia DOT's goals focus on planning and constructing the best set of mobility-focused projects, making safety investments and improvements where the traveling public is most at risk, taking care of the transportation infrastructure to ensure mobility and safety, and making Georgia DOT work better.
ES-1

STRATEGIC PLANNING PROCESS
To develop the 2013-2017 strategic plan, multiple approaches were used to gather internal input and feedback at all levels within the department. The State Transportation Board, Georgia DOT's leadership team, and employees were all involved in revising the department's vision, mission, and core values. Demographic and economic data as well as information about the department was reviewed to gain an understanding of the external and internal factors that impact Georgia DOT. This analysis informed the process of selecting objectives and strategies to accomplish the goals established in the strategic plan.
STRATEGIC PLAN
The strategy map, Figure ES-1, summarizes Georgia DOT's vision, mission, values, goals and objectives the core elements of the strategic plan. The plan recognizes the primary responsibility of the agency to plan, construct and maintain the Georgia State Highway System while making Georgia DOT a better agency that is committed to serving the public. This plan focuses on customers as Georgia DOT's top priority. The strategies in this plan will move the department in the direction of its established goals.
Figure ES.1 Strategic Plan Strategy Map
ES-2

1.0 Introduction

Georgia DOT is committed to conducting

business efficiently and communicating openly with its internal and external partners. The Georgia DOT Strategic Plan identifies the

An Effective Strategic Plan Will:

challenges, risks, and opportunities Georgia's transportation system will face in the coming years, and the strategies the department will implement to continue to maintain a safe and

Align organizational units
Increase the time spent on core business activities

efficient transportation system.

Manage expectations

Strategic planning helps Georgia DOT be a good steward of Georgia's transportation system, focusing the department's attention on moving people and goods safely and efficiently in the State. Strategic planning establishes an accountable framework that helps focus the agency's actions and makes

Make the best use of resources
Enable an agency to conduct business in a transparent and accountable environment.

clear to citizens what the agency does and

why. In a world that expects transparency and accountability, a strategic plan is

an important tool to make Georgia DOT truly effective.

The department undertakes strategic planning for many reasons: to meet statutory requirements, establish common goals and objectives for the agency, and prepare for the long term. Fundamentally, Georgia DOT's Strategic Plan focuses the vision and priorities of the agency for the coming years. It is revisited annually to ensure that the strategic direction remains relevant and consistent with the vision of current State and agency leadership and to track progress towards Georgia DOT's goals and objectives. The Strategic Plan is comprised of four goals, each with objectives, strategies and performance measures. These strategies support the agency's commitment to the ongoing stewardship of the state transportation system.

1.1 FOCUSING ON AGENCY GOALS
The real value of strategic planning to Georgia DOT does not come from complying with statutory requirements, but from using the plan to set a direction for the agency and focusing the agency's resources, its people, equipment and dollars, on the highest priority actions.

1

1.2

The Georgia DOT Strategic Plan provides a broad roadmap for the department. At its core, the Strategic Plan answers the questions: What do we do? For whom do we do it? And what can we do to maintain a safe and reliable transportation system with constrained resources?
Developing the Strategic Plan also serves as an effective staff development activity. Georgia DOT's Strategic Plan is intended to engage employees to help shape the agency's direction and culture. An effective strategic planning process provides the opportunity to help employees understand the goals of the agency, and to see where they fit in and how they can contribute to accomplishing the agency's goals.
FROM STRATEGIC PLANNING TO ASSET MANAGEMENT

GEORGIA TRANSPORTATION
FAST FACTS
7 District Offices 34 Area Offices 152 Maintenance Facilities 17 Rest Areas 9 Welcome Centers 4110 Employees 17912 State Highway System Miles
6676 Bridges 84539 County Road Miles
19,359 City Street Miles 102 Certified HERO Operators
15 Urban Transit Programs 107 Rural Transit Programs 540 Miles of Light Density Rail 83 Active Park & Ride Lots 104 Publicly Owned Airports

Transportation asset management is defined as:

Strategic planning is part of an overall effort to manage Georgia DOT. The strategic plan

"... a strategic process of

establishes goals and objectives, identifies

operating, maintaining,

short-term business strategies, and sets the

upgrading and expanding overall direction for the agency. From there,

physical assets using sound business and engineering
practices for resources allocation."

Georgia DOT uses performance management and asset management to help deliver on the goals and objectives set for the agency.
Figure 1.1 demonstrates the relationship

between strategic planning, performance management, and asset management.

Performance management is an overall approach to making investment decisions

while tracking progress towards agency goals through the use of outcome-based

performance measures. Measures of actual outcomes are important because they

reflect customer priorities, compared to the inputs (labor and materials) and

outputs (amount of work delivered) that drive these outcomes.

Figure 1.1 Relationship between Strategic Planning, Performance Management and Asset Management

Strategic Plan
Asset Management

Provides direction through Vision, Mission, Goals and Objectives
Implements priorities through analysis of Life-Cycle Costs and explicit consideration of Tradeoffs

Performance Management

Tracks progress towards Goals through outcome-based Measures

Asset management is an approach to delivering those inputs and outputs that focuses on minimizing the life-cycle cost of investments (from planning to construction to operation and maintenance). The Department has a target of implementing an enterprise asset management system within the next five years. The first phase of the department's asset management system will implement the following modules: Maintenance Manager, Pavement Analyst, Sign Manager, Signals/ITS Manager, Bridge Inspector, Bridge Analyst and Fleet/Equipment Manager.

The

asset

management

implementation

plan, http://www.dot.ga.gov/Projects/programs/Documents/AssetMgmt/TA

MPlan.pdf outlines strategies to develop a comprehensive asset inventory,

consistently manage asset data, ensure data-driven investment decisions, and

institutionalize asset management as a business practice at Georgia DOT. It is

based on a strategic approach to managing the transportation system and

organization that explicitly examines the relationships between inputs, outputs,

and outcomes.

1.3 LINKING TO GEORGIA'S STRATEGIC PRIORITIES
In Georgia, the State and its agencies are required by OCGA1 45-12-73 and 175 to develop a strategic plan. The Georgia strategic planning process has three components (Figure 1.2). The first component is a state strategic plan that provides the vision, direction, and priorities of the State. The second component is an agency strategic plan that aligns with the state strategic plan. The third

1 OCGA: Official Code of Georgia Annotated.

3

component is a semiannual agency performance report which agencies use to report progress and performance on their strategic plan, mission critical projects and performance indicators.

Figure 1.2 Georgia Strategic Planning Process

State Stra tegic Pla n
Covers four to five year time span
DefinesGovernor'svision, direction, and priorities
Establishesstate strategic goals

Agency Stra tegic Pla n
Coversthree to four year time span
Definesagency goalsthat must align to state goals
Focuseson strategic activities to achieve goals

Agency Performance Report
Submitted twice a year Measuresachievement of
objectives Tracksagency performance
on strategic plan

The Georgia State Strategic Plan identifies six strategic goals:

Educated Developing life-, college-, and work-ready students;
Mobile Transporting people and products in a 21st century Georgia;
Growing Creating jobs and growing businesses;
Healthy Accessible care and active lifestyles;

"A lean and responsive state government that allows communities, individuals and businesses
to prosper."
~Governor Nathan Deal

Safe Protecting the public's safety and security; and

Responsible and Efficient Government Fiscally sound, principled, conservative.

Georgia DOT, like all state agencies, has a role in implementing the state strategic plan. In particular, Georgia DOT has a prime role in implementing the Mobility, Safety, and Responsible and Efficient Government goals. Georgia DOT's goals include planning and constructing the best set of mobility-focused projects, making safety investments and improvements where the traveling public is most at risk, taking care of the transportation infrastructure to ensure mobility and safety, and making Georgia DOT work better.

2.0 Strategic Plan Development

The 2013-2017 Strategic Plan used multiple

approaches to gather internal input and feedback at all levels within the department. The State Transportation Board and leadership team, and

Input and feedback was

employees were involved in the process of revising the department's vision, mission, and core values. Demographic and economic data were reviewed,

gathered at all levels of GDOT

along with department data and information, to

gain an understanding of the external and internal factors that will impact

Georgia DOT as it seeks to implement this plan. This analysis informed the

process of selecting objectives and strategies to accomplish the goals established

in the strategic plan. The potential impacts the environmental factors may have

on the department are discussed in Section 6.0 Environmental Scan.

Georgia DOT is governed by a 14-member State Transportation Board. As an important part of the leadership of Georgia DOT, the State Transportation Board provided input into the strategic planning process.

The Board's vision for the department to contribute to the State's economic competitiveness and communicate effectively with its internal and external partners provided guidance in the development of the vision and mission.

Strategic planning requires commitment from senior leadership. Georgia DOT's senior leadership team is responsible for setting the department's overall direction and targets. Members of the leadership team the Department's Commissioner, Deputy Commissioner, Chief Engineer, and Treasurer play an important role in developing an effective strategic plan that aligns the agency's goals with the state strategic goals and identifies the critical steps needed to achieve the vision, mission, and core values of the agency. The senior leadership team is responsible for communicating the desired strategies the department will implement to achieve the department's goals and objectives and holding division directors and office managers accountable.

Every employee of the department plays a role in accomplishing the goals identified during the strategic planning process. To gain input from the department's employees, an internal poll was conducted. The internal poll was a useful tool for allowing each Georgia DOT employee the opportunity to participate and express an opinion about the direction of the agency. The result was a mission statement that represented the views of all levels of the agency.

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3.0 Mission, Vision, Core Values

3.1

VISION
The purpose of the vision statement is to answer the question, where does the agency want to be in the long term? Connecting transportation's role with the economic success of the State of Georgia is an important aspiration. Likewise, it was important that the department's vision statement capture the Governor's vision to enhance Georgia's competitiveness.
Georgia DOT's vision statement is:

Enhancing Georgia's competitiveness through leadership in transportation

3.2

MISSION
At its simplest, the mission statement answers the question, why do we exist? Through the discussions that took place over several months the best descriptors of why the Georgia DOT exists were the department's role in providing transportation leadership, the seriousness with which the department takes its responsibilities and the desire to emphasize working in partnership with citizens and stakeholders.
The mission statement for the Georgia DOT is:

Georgia DOT provides a safe, connected and environmentally sensitive transportation system that enhances Georgia's economic competitiveness by working efficiently and communicating effectively to create strong partnerships.

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3.3

CORE VALUES
The purpose of the core values is to guide agency employees as they conduct their day-to-day business. The core values drive the culture of an organization and remind employees of what is important. As such, the core values provide a way to underscore the agency's desired culture.
Through the strategic planning discussion FOCUS (Flexible, Open, Committed, Unified, Successful) was adopted as the overall critical core value. A focused agency will know why strategic and investment decisions are being made and will be prepared to respond when challenges emerge. The Georgia DOT believes that a focused agency and focused employees are Flexible, Open, Committed, Unified, and Successful.
The core values for the Georgia DOT are:

Flexible Open Committed Unified Successful

4.0 Goals and Objectives
Georgia DOT has adopted four goals as well as objectives to be met for each goal. The "strategy map" in Figure 4.1 is a graphical representation of all of the elements of the strategic plan and shows how they fit together.
Figure 4.1 Strategic Plan Strategy Map
9

Once goals and objectives are identified, there are often challenges that must be addressed if the goals and objectives are to be met. Table 4.1 identifies critical success factors or actions the departments must take to succeed in accomplishing its goals and identifies the potential risks that might prevent accomplishing the goals and objectives.

Table 4.1 Adopted Goals and Objectives

Goals

Objectives

Critical Success Factors

Making Georgia DOT Complete training of the third



a better place to work cohort of the Succession Planning

will make Georgia

Program by August 2015



DOT a place that

(Baseline is May 1st, 2013)

works better

From July 1, 2014 through June

30, 2017 implement at least two

initiatives department wide as a

result of the 2014 Employee

Survey

Committed



management

Educating employees on the positive changes taking place as a result of employee survey

Making safety

From January 1, 2012 through

investments and

December 31, 2017 decrease

improvements where fatalities by 10% (from 1199

the traveling public is fatalities in CY 2012 to 1079

most at risk

fatalities in CY 2017) using a 5

year rolling average

Support from and coordination with various state and local agencies involved with safety and incident response

Risks External issues could distract the agency
Limited funding Lack of coordination with local agencies

Goals

Objectives

Critical Success Factors

Taking care of what we have, in the most efficient way possible

From July 1, 2013 through June 30, 2017, resolve 75% of all customer inquiries within the 3-day resolution time
From July 1, 2013 through June 30, 2017, maintain Georgia's Interstates such that 90% or more are in Fair or better condition. `Fair' condition for Interstates is defined as an average COPACES (Computerized Pavement Condition Evaluation System) Rating of 75 to 80.
From July 1, 2013 until June 30, 2017, maintain Georgia's NonInterstate roads such that 90% or more are in Fair or better condition. `Fair' condition for nonInterstates is defined as an average COPACES (Computerized Pavement Condition Evaluation System) Rating of 70 to 80.
From July 1, 2013 until June 30, 2017, maintain 85% of Stateowned bridges to meet or exceed the GDOT s standards (strength and condition)
From FY 2014 to FY 2017, implement seven (7) modules in the GAMS system:
Bridge Inventory
Bridge Analyst
Pavement Management
Maintenance Management
Fleet/Equipment Manager
Sign Inventory
Signals/ITS Manager
By the end of FY 2015, establish and fund a program to deal with the effects of snow and ice storm contingencies in Georgia.

An enterprise asset management system
Adequate preservation funding

Risks
Maintaining adequate funding for preservation

11

Goals

Objectives

Critical Success Factors

Planning and

From July 1, 2013 through June

constructing the best 30, 2017, complete Plan

set of mobility-

Development and Construction of

focused projects we projects per the programmed year

can, on schedule

in the currently approved STIP

By the end of FY 2014, complete construction of 80% or more of all projects within contract time and 90% of all projects within budget (Baseline: July 1st, 2013

From July 1, 2013 through June 30, 2017 make significant progress in implementation of MLSP projects by constructing the I-75 / I-575 NW corridor and the I75 South corridor

From July 1, 2013 until June 30, 2017 finalize development of the SR 400 Managed Lane feasibility analysis

Include not less than one project from the MLSP within the 20152018 STIP to be developed in CY 2015

Agency-wide



focus on project

delivery and



implementing

procedures to

enhance delivery

and control costs

Risks
Limited funding
Difficulty changing focus and finding operational approaches to congestion

5.0 Strategies

The department has identified strategies that, if implemented, will move the agency in the direction of the established goals. Georgia DOT has also identified measures to assess how well or if the agency has implemented these strategies. Each of the strategies has been assigned to a Division or an Office for implementation and tracking. The 2014 strategies for each goal are identified in Tables 5.1.

Table 5.1 Goal 1 Strategies

Goal 1 Making Georgia DOT a better place to work will make Georgia DOT a place that works better

Objective

Action Step/Strategy

Measure/Target

Division (Office) Responsible

Complete training of the third cohort of the Succession Planning Program by August 2015 (Baseline is May 1st, 2013)

Conduct and track training activities for the Third Cohort of the Succession Planning Program(18-month training cycle)

Percent of the Succession Administration Planning training completed (Human Resources) by the third cohort by August 2015 (target 100%)

From July 1, 2014 until June Improve Employee 30, 2017 implement at least 2 Engagement initiatives department wide as a result of the 2014 employee survey

Number of initiatives

Organizational

initiated as a result of the Performance

employee survey (target 2) Management

13

Goal 2 Strategies

Goal 2 Making safety investments and improvements where the traveling public is most at risk

Objective

Action Step/Strategy

Measure/Target

Division (Office) Responsible

From January 1, 2012 until Continue implementation of December 31, 2017 decrease the GA Strategic Highway fatalities by 10% (from 1199 Safety Plan (SHSP) fatalities in CY 2012 to 1079 fatalities in CY 2017) using a 5 year rolling average.

Number of fatalities in the Calendar Year (CY). (Target: decrease by 10% using 5-year rolling average)

Permits and Operations (Traffic Operations)

Goal 3 Strategies

Goal 3 Taking care of what we have in the most efficient way possible

Objective

Action Step/Strategy

Measure/Target

Division (Office) Responsible

From July 1, 2013 until June 30, 2017, resolve 75% of all customer inquiries within the 3 day resolution time

Improve external customer service
Decrease the response time for resolution of customer inquiries; increase responsiveness

Percentage of customer inquiries resolved within 3day resolution time (Target 75%)

Communications

From July 1, 2013 until June 30, 2017, maintain Georgia's Interstates such that 90% or more are in Fair or better condition. `Fair' condition for Interstates is defined as an average COPACES (Computerized Pavement Condition Evaluation System) Rating of 75 to 80.

Preserve Interstate Pavement Percent of interstates in `Fair' or better condition (Target 90% at COPACES rating of 75 to 80)

Permits and Operations (Maintenance)

From July 1, 2013 until June 30, 2017, maintain Georgia's Non-Interstate roads such that 90% or more are in Fair or better condition. `Fair' condition for non-Interstates is defined as an average COPACES (Computerized Pavement Condition Evaluation System) Rating of 70 to 80.

Preserve pavement on Stateowned multi-lane, nonInterstate routes

Percent of State-owned multi-lane, non-Interstate routes in `Fair' or better condition (Target 90% at COPACES rating of 70 to 80)

Permits and Operations (Maintenance)

From July 1, 2013 until June 30, 2017, maintain 85% of State-owned bridges to meet or exceed the GDOT's standards (strength and condition)

Maintain State-owned bridges Percent of State-owned bridges that meet or exceed GDOT's standards (Target 85%)

Engineering (Bridge)

From FY 2014 to FY 2017, Implement enterprise asset implement seven (7) modules management system in the GAMS system:
Bridge Inventory

Number of modules implemented in enterprise asset management system (Target 7)

Information Technology

Bridge Analyst

Pavement Management

Maintenance Management

Fleet/Equipment Manager

Sign Inventory

Signals/ITS Manager

By the end of FY 2015, establish and fund a program to prepare for snow and ice storm events in Georgia

Prepare for inclement weather

Establish and fund a program for inclement weather (End of FY 2015)

Permits & Operations

15

Goal 4 Strategies

Goal 4 Planning and constructing the best set of mobility-focused projects we can, on schedule

Objective

Action Step/Strategy

Measure/Target

Division (Office) Responsible

From July 1, 2013 until June 30, 2017, complete Plan Development and Construction of projects per the programmed year in the currently approved STIP

Monitor ROW and CST phases

Percent of ROW phases authorized on schedule (target 75%)
Percentage of CST phases authorized on schedule (target: 80%)

Program Delivery/ Engineering

From July 1, 2013 until June 30, 2017, complete construction of 80% or more of all projects within contract time and 90% of all projects within budget (Baseline: July 1st, 2013)

Monitor and oversee construction projects

Percent of projects constructed on schedule (target: 80%) and on budget (target 90%)

Construction

From July 1, 2013 until June Execute Managed Lane 30, 2017 make significant System Plan progress in implementation of MLSP projects by constructing the I-75 / I-575 NW corridor and the I-75 South corridor

continue project development activities on other key MLSP identified corridors, such as SR 400 (north of I-285); I-285, between I-75 and I-85, and I85 north of Old Peachtree Rd to Hamilton Rd.

Include not less than one Develop Statewide

project from the MLSP within Transportation Improvement

the 2015-2018 STIP

Plan

Significant progress on I75 northwest Corridor project or I-75 south corridor
Number of projects included in the STIP that utilized Public Private Partnership funding for MLSP projects.

Innovative Delivery Planning

The strategic objectives identified in this plan will be used as a guide for the Department. By adopting strategic objectives for each goal, the agency can track progress being made towards accomplishing its goals. Progress is tracked and reported biannually to the Georgia Office of Planning and Budget to create a transparent process and to provide accountability to the public.

6.0 Environmental Scan

There are demographic, political, and eco-

nomic trends that both shape the need for the services provided by the Georgia DOT and influence how Georgians perceive the

Environmental scan provides context for

department. Prior to determining the optimal strategies to achieve the goals adopted by the department, a scan of

Georgia DOT strategic planning

Georgia's current environment was

conducted to build a context and help guide GDOT's strategic planning towards

a preferred future. The environmental scan provides data and information that

paints a picture of the environment in which the agency operates. That

information can then be used to select realistic and feasible strategies that will

effectively address the State's transportation needs.

The following section analyzes high-level demographic and economic indicators to illustrate the current economic and demographic climate in which Georgia DOT operates.

6.1

DEMOGRAPHICS
Demographics are fundamental in determining the size and extent of transportation demand and the types of transportation services required to accommodate the needs of Georgia residents.

Population Growth
Today, Georgia ranks among the fastest growing states. Georgia's population more than doubled between 1970 and 2010 adding more people than all but three states. Even though the rise in population has recently slowed with the recession, Georgia has maintained higher growth than the U.S. average. The State's transportation system must accommodate the needs of an increasing number of residents, retirees, businesses, and workers, and do so reliably, safely, and efficiently.

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Figure 6.1
12,000,000

Georgia's Population Growth 1970 - 2010

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0

1970

1980

1990

2000

2010

Source: U.S. Census Bureau.
Population growth also has a direct bearing on transportation demand. Georgia's population reached 9.8 million in 2011, and during the prior decade surpassed New Jersey to become the eighth largest state in the country.
Although Georgia has been among the fastest growing states for much of the nation's post-World War II growth, it has recently seen a slowdown in the pace of this growth. Figure 6.2 shows recent annual population growth rates for both Georgia and the U.S.

Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. 1991-2011
3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%

Source: U.S. Census Bureau.

GEORGIA

United States

6.2

ECONOMIC INDICATORS
Even though Georgia's population growth has recently slowed, it has not stopped. Consequently, demand on the State's transportation system continues to grow as more people translates to more drivers and more trips. Just recently, Governor Deal announced that Georgia in first place as the most competitive state in the nation by Selection Magazine. Georgia's economy also contributes to demand for the movement of people and goods. Economic growth, like population, increases trips and volumes for all transportation modes.

Employment and Unemployment
The Georgia economy employed 4.7 million people in 2013. Similar to population, Georgia has also experienced substantial long-term increases in jobs, more than doubling between 1970 and 2010 (see Figure 6.3). Jobs translate into trips as more people commute, shop, and buy services, and are also a reflection of overall business activity affecting freight. Until recently, Georgia's job gains have far exceeded the nation's. Despite this long record of sizeable employment gains, the impact of the recent recession on Georgia's jobs was worse than the nation's (see Figure 6.5).

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Figure 6.3 Jobs Growth, Georgia Compared to the U.S. 1990-2012 (Jobs Growth Index, 1990 = 1.00)
1.50
1.40
1.30

1.20 1.10 1.00

0.90 1990

1995

2000

2005

GEORGIA

United States

2010 2012

Source: Bureau of Labor Statistics, Current Employment Statistics (CES).

Georgia's unemployment rate has exceeded the nation's since 2008 (Figure 6.3), resulting in a loss of 7.0 percent of its total jobs during the recession compared to 5.6 percent for the U.S. While the recent recession and today's slower growth may temporarily relieve some pressure points on Georgia's transportation network (e.g., highway congestion and bottlenecks), existing and new problems will likely immerge as job growth and the economy begin to recover and grow more robustly.

Figure 6.4 Unemployment Rate, Georgia Compared to the U.S., 2000-2012 Unemployment Rates in Percent
Source: Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS).
Gross Domestic Product
Georgia's transportation system underpins the State's $420 billion (2012 dollars) economy (an economy roughly similar in size to South Africa and Argentina). Georgia's gross domestic product (GDP), a universal measure of economic size and activity, grew by 11 percent between 2000 and 2011 (adjusted for inflation), well below the 17 percent increase in the U.S. GDP posted over the same period (see Figure 6.5). Because Georgia combined fast population growth with slow economic growth over the past decade, the State's per capita gross product was the second worst performer among the states after Michigan, registering a 6.9 percent drop between 2000 and 2011. Georgia's economy is dynamic and its competitiveness in the world market is fostered by the efficient movement of goods to keep costs down and customers supplied. The transportation network also brings people together for face-to-face meetings and links businesses to opportunities in distant markets, both global and domestic. All businesses need Georgia's transportation network and services to provide safe, reliable travel for workers. Georgia's transportation network provides the foundation on which industries crucial to the State economy can grow.
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Figure 6.5 Georgia GDP Growth Compared to the U.S. 1997-2011 (GDP Growth Index, 1997 = 1.00)
1.50 1.45 1.40 1.35 1.30 1.25 1.20 1.15 1.10 1.05 1.00

GEORGIA

United States

Source: Bureau of Economic Analysis.
Figure 6.6 Real GDP Per Capita, 1997-2011 Georgia Compared to the U.S.
$60,000

$55,000

$50,000

$45,000

$40,000

$35,000

$30,000

GEORGIA

United States

Source: Bureau of Economic Analysis; figures in inflation adjusted 2011 dollars.

Industry Mix Georgia's Economic Structure
Georgia's economic structure helps to define transportation needs in the State. Several "freight-intensive" industries (mining, agriculture, manufacturing, energy, construction, retail, and logistics, and distribution) have a significant impact on trucking, rail, air cargo, and deep sea shipping needs. The tourism industry has clear transportation needs, both for freight (deliveries to restaurants and hotels) and visitor access and mobility. Compared to the nation, defining characteristics of the Georgia economy include industry concentrations in logistics and distribution, a freight-intensive industry, and professional services, including engineering, architecture, scientific research, accounting, and marketing. The services sectors, including professional services, continue to be the largest contributors to Georgia's overall economic output. Freight services industries tend to move more time-sensitive goods (e.g., overnight parcel post). The trucking and air modes have historically dominated parcel shipments, but railroads have responded by offering scheduled services and improved reliability to handle these types of shipments. Figure 6.8 shows the contribution of each major industry sector to Georgia's GDP compared to the U.S. Although not the State's largest economic sector, the relative significance of Georgia's logistics and distribution sector compared to the U.S. can be easily seen.
Figure 6.7 Structure of the Georgia Economy Compared to the U.S., 2011 Industry Share of the Economy
20%
15%
10%
5%
0%

Source: Bureau of Economic Analysis.

GEORGIA U.S.

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Strategic improvements to Georgia's transportation system to improve the movement of goods and people can help to augment the overall competitiveness of the State's industries and economy.
Economic Impact on Transportation
Transportation is strongly impacted by the economy. A thriving economy creates more demand for transportation throughout all transportation sectors. The trends indicate that while the recession has had an impact on Georgia's economy, Georgia remains one of the largest economic drivers in the Southeast. As a result it is critical that Georgia DOT pursues strategies which will provide efficient movement of goods and people and keep pace with Georgia's growing economy.

6.3

LEGISLATION
Georgia DOT is governed by legislation approved by the Georgia General Assembly. In recent years, several pieces of legislation have had a significant impact on Georgia DOT. The most impactful, recent legislation House Bill 277, better known as the Transportation Investment Act (TIA) of 2010, created 12 special tax district regions and allowed each region the option to levy by referendum a 1 percent sales tax for 10 years to build projects selected by elected leaders of local governments in the specified region. Citizens in each region voted on the proposed sales tax increase in a July 31, 2012 referendum and it was passed in the regions of Central Savannah, Heart of Georgia and River Valley. Most project delivery will be the responsibility of Georgia DOT, working with local governments. HB 277 (TIA) will require the redirection of resources and manpower to manage the delivery of projects implemented under the regional sales tax program levied by individual regions at their discretion.
The following bills passed by the Georgia General Assembly during the 2014 Legislative Session also have significant impact on transportation in the State and the operational procedures of Georgia DOT:
HR 1573 Creates a Joint Study Committee on Critical Transportation Infrastructure Funding. The committee is comprised of 16 members who are required to submit a report by November 30, 2014.
HB 265 Enables Clayton County to join MARTA if constituents vote favorably.
HB 774 GDOT's annual housekeeping bill that enacts operational changes at the agency to include the following: Changes Statewide Strategic Transportation Plan to an annual report; Increases city and county contract exemptions for quick response projects; Updates traffic regulations for red and yellow arrow signals; Increases maximum speed to 70 miles per hour on urbanized interstates.

6.4

FISCAL INDICATORS
Georgia DOT has two primary sources of revenue: state motor fuel taxes and Federal funds. The Federal dollars are called "reimbursements" because the State must first pay for construction work before billing the Federal government for reimbursement. Figure 6.8 presents total revenue from State and Federal sources.

Figure 6.8 Georgia DOT Revenues FY 2008-2013

$3,000

State Motor Fuel Collections

Federal Reimbursements

$2,500

Total Funds ($ Millions)

$2,000

$1,500

$1,000

$500

$0

FY08

FY09

FY10

FY11

FY12

FY13

Source: Georgia Department of Transportation Budget Office
The impact of the recession can be seen in the motor fuel tax collection numbers. Though collections have recovered they still lag the pre-recession numbers and it is not yet known if the collections will fully rebound. With the introduction of more fuel efficient and electric vehicles and travel numbers lagging historic travel growth, motor fuel tax collections may flatten or decline slightly.
The increase that can be seen in the fiscal year 2010, 2011, 2012 Federal reimbursements are a reflection of the increased spending from the American Recovery and Reinvestment Act. Federal funds are expected to be stable for the next two years but the long-term outlook continues to be uncertain as the current level of transportation spending cannot be sustained by the Federal highway trust fund as currently configured.

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Figure 6.8 shows the average appropriations from each funding source over the period from FY 2008 to FY 2014. As shown, nearly 60 percent of Georgia DOT's budget appropriations come from Federal funding and 43 percent comes from motor fuel taxes (MFT). Agency funds, intrastate transfers and appropriations from the State General Fund combine for a total of 1 percent.
With this dependence on Federal funds and MFT, funding for transportation in Georgia is vulnerable to any changes in the policies that impact MFT and Federal transportation.
Figure 6.9 Average Appropriations from FY 2008 to FY 2013

State General Funds, 12,872,871
1%

Other, 6,968,947
0%

Federal Funds , 1,250,098,549
56%

Motor Fuel, 953,587,198
43%

Source: Georgia Department of Transportation Budget Office
Due to the lack of sustainable funding for transportation, continuing to provide the level of service Georgians have become accustomed to going forward presents a challenge. Georgia relies heavily on reimbursements from the Federal Highway Administration (FHWA), however those funds could decrease over the next few years.
MAP-21, the Moving Ahead for Progress in the 21st Century Act, was signed into law by President Obama on July 6, 2012. Funding surface transportation programs at over $105 billion for fiscal years (FY) 2013 and 2014, MAP-21 is the first long-term highway authorization enacted since 2005.

6.5

WORKFORCE TRENDS
Georgia DOT considers its workforce one of its most valuable assets. In order to carry out its mission, the department must recruit and maintain a skilled and experienced workforce. The number of employees at Georgia DOT has declined since 2007, and it continues to decline each year. As of April 30, 2014, Georgia DOT had 4110 employees.
Sixteen percent of the workforce is within five years of retirement while 47% of the senior leadership and 48% of office heads are within five years of retirement.

Figure 6.10 Georgia DOT Employees

GDOT Employees

Employment Count

7000 6000 5000 4000 3000 2000 1000
0 2007 2008 2009 2010 2011 2012 2013 2014
Note: 2007-2010 values are as of July of the respective years; 2011 is as of December 31, 2012; 2012 is as of July 5, 2012, 2013 as of June 5, 2013 and 2014 is as of April 30, 2014.

Workforce Impacts on the Georgia DOT
To address the retirement challenge, the department is providing training and professional development activities to enhance the skill and knowledge levels of its current workforce. Programs such as succession planning, employee development (training and job shadowing), and knowledge transfer are just some of the examples that GDOT is offering. These programs aim to help close the skill levels/competencies gap and allow employees interested in career advancement to enhance their skills and apply for higher level positions when they become available.
Compensation plays a major role in the department's ability to attract and retain well qualified employees for critical positions. The most difficult positions to fill continue to be in the areas of maintenance, engineering, accounting/finance and information technology.

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The department is placing emphasis on a new compensation structure job worth. This initiative will address recruitment and retention issues, including the ability to attract and retain high potential employees. Job worth is an objective, systematic approach utilizing salary survey data and requirements for each position to establish a pay structure that is in line with the value of the work that position provides to the Department. This process will be used primarily to place a value and to establish job worth for benchmark positions across the Department, which will in turn be used to establish job worth for other positions associated with those benchmark positions. This process will complement the new State-wide classification structure while adjusting salaries to be more in line with market. This will also help to address salary inequities and the need to "job hop" in order to receive a salary increase.

7.0 Summary
The FY 2013-2017 plan established the primary responsibility of the agency to plan, construct and maintain the Georgia State Highway System and also acknowledges that making Georgia DOT a better agency, better serves the public. This plan identifies who Georgia DOT serves and keeps the focus on the customer making their priorities Georgia DOT's primary concern. The plan also recognizes Governor Deal's priorities for Georgia and when implemented will help realize the Governor's vision for "A lean and responsive state government that allows communities, individuals and businesses to prosper." Even with committed agency participation in implementing this plan, the value of the plan will not be fully realized if the outcomes from plan implementation are not periodically, publicly reported. Performance measures that capture the key outcomes expected in this plan will be reported twice a year to the Governor's Office of Planning and Budget utilizing data from the Georgia DOT performance dashboard. The success of strategic planning depends on the participation, understanding and acceptance of the plan by employees throughout the agency. This plan will be provided to Department employees in multiple ways to ensure broad awareness of the plan. This plan is a living document, to be modified and revised as conditions change.
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