Strategic plan [2015]

FY 2013-2017 Strategic Plan
FY 2016 Strategic Plan Update
Summer 2015
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Table of Contents
Executive Summary.................................................................................................. ES1 Linking to Georgia's Strategic Plan..................................................................ES1 Strategic Planning Process.................................................................................ES2 Strategic Plan .......................................................................................................ES2
1.0 Introduction ............................................................................................................ 1 1.1 Focusing on Agency goals ............................................................................ 2 1.2 From Strategic Planning to Asset Management ........................................ 2 1.3 Linking to Georgia's Strategic Priorities .................................................... 4
2.0 Strategic Plan Development ................................................................................ 7 3.0 Mission, Vision, Core Values .............................................................................. 9
3.1 Vision............................................................................................................... 9 3.2 Mission ............................................................................................................ 9 3.3 Core Values ................................................................................................. 10 4.0 Goals and Objectives .......................................................................................... 11 5.0 Strategies ............................................................................................................... 15 6.0 Environmental Scan ............................................................................................ 19 6.1 Demographics .............................................................................................. 19 6.2 Economic Indicators .................................................................................... 21 6.3 Legislation..................................................................................................... 28 6.4 Fiscal Indicators ........................................................................................... 30 6.5 Workforce Trends ...................................................................................... 34 7.0 Summary .............................................................................................................. 38
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List of Tables
Table 4.1 Goals and Objectives ................................................................................ 12 Table 5.1 Strategies..................................................................................................... 15
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List of Figures
Figure ES.1 Strategic Plan Strategy Map...................................................................ES2 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..................................................................... 11 Figure 6.1 Georgia's Population Growth, 1970-2014. ............................................. 20 Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. ............... 21 Figure 6.3 Georgia Employment ............................................................................... 22 Figure 6.4 Jobs Growth, Georgia Compared to the U.S, 1990-2015..................22 Figure 6.5 Unemployment Rate, Georgia Compared to the U.S., 2000-2014...... 23 Figure 6.6 Per Capita Personal Income, 1990-2014 ......................................24 Figure 6.7 Georgia GDP Growth Compared to the U.S. ........................................ 25 Figure 6.8 Real GDP Per Capita, 1997-2013 ............................................................. 25 Figure 6.9 Structure of the Georgia Economy Compared to the U.S., 2013 ........ 27 Figure 6.10 Georgia's Transportation Sector Compared to the U.S., 2012.........27 Figure 6.11 Georgia DOT Revenues............................................................................ 30 Figure 6.12 Average Appropriations from FY 2008 to FY 2014 .............................. 31 Figure 6.13 GDOT Debt Service Payments.................................................32 Figure 6.14 FY2014 Capital Programs by Fund Source .................................33 Figure 6.15 Georgia DOT Employees.......................................................34 Figure 6.16 GDOT Staffing Changes in Key Functions.................................35
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Executive Summary
The Georgia Department of Transportation (Georgia DOT) regularly updates its Strategic Plan to reflect the current priorities of the Department and to report them to the Governor's Office of Planning and Budget. Strategic planning establishes an accountable framework that outlines the agency's overall direction, supports the agency's actions and explains 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 not only sets the agency's goals and objectives, but it also 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 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 mobilityfocused 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
Multiple approaches were used to gather internal input and feedback at all levels within the department and to develop the 2013-2017 Strategic Plan. 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 were gathered, analyzed and 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 transportation network 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 GDOT's Strategy Map
ES-2

1.0 Introduction

Strategic planning helps Georgia DOT be

a good steward of Georgia's transportation system, focusing the Department's attention on moving people

An Effective Strategic Plan Will:

and goods safely and efficiently in the Align with the State's

State. Strategic planning establishes an

goals and priorities

accountable framework that helps focus the agency's actions and makes 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 help make Georgia DOT

Align organizational units
Increase the time spent on core business activities

transparent and effective.

Manage expectations

The Department undertakes strategic planning for many reasons: to meet statutory requirements, to establish common goals and objectives for the agency, and to prepare for the long term. Fundamentally, Georgia DOT's Strategic Plan focuses the vision and priorities of the agency for a four year period. The

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

current plan is for years 2013-2017. 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.

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1.1 FOCUSING ON AGENCY GOALS

The real value of strategic planning to Georgia DOT does not only come from complying with statutory requirements, but also 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.

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.

GEORGIA DOT TRANSPORTATION
FAST FACTS
7 District Offices
32 Area Offices 16 Rest Areas 9 Welcome Centers 4,099 Employees 17,955 State Highway System Miles 6,671 State owned Bridges 87,539 County Road Miles 19,359 City Street Miles 89 Certified HERO Operators 14 Urban Transit Programs 114 Rural Transit Programs

540 Miles of Light Density Rail

1.2 FROM STRATEGIC PLANNING TO ASSET

77 Active Park & Ride Lots 104 Publicly Owned Airports

MANAGEMENT

Transportation asset management is defined as:
"... a strategic process of operating, maintaining, upgrading and expanding
physical assets using sound business and engineering practices for resources allocation."

Strategic planning is part of an overall effort to manage Georgia DOT. The Strategic Plan establishes goals and objectives, identifies short-term business strategies, and sets the overall direction for the agency. From there, 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
Performance Management

Provides direction through Vision, Mission, Goals and Objectives
Implements priorities through analysis of Life-Cycle Costs and explicit consideration of Trade-offs
Tracks progress towards Goals through outcome-based Measures and guides decisions of changing or adjusting set goals and targets

Asset management is an approach to deliver those inputs and outputs while focusing on minimizing the life-cycle cost of investments (from planning to construction to operation and maintenance). The Department is in the midst of implementing an enterprise asset management system. The first phase of the Department's asset management system implemented 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 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.
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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 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

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.

1 OCGA: Official Code of Georgia Annotated.

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, Growing, 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.
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2.0 Strategic Plan Development

The 2013-2017 Strategic Plan was developed by

gathering internal input and feedback from all levels within the Department. The State Transportation Board, Georgia DOT leadership teams, and employees were involved in the

Input and feedback was gathered at all

process of revising the Department's vision, levels of GDOT

mission, and core values. Demographic and

economic data were reviewed, along with

Department data and information to gain an understanding of the

external and internal factors that could 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. Among other things, the Board exercises general control of the Department and appoints the Commissioner. As an important part of the Georgia DOT leadership, the State Transportation Board provided input into the strategic planning process.

The vision of the Board is for the Department to contribute to the State's economic competitiveness and to communicate effectively with its internal and external partners. Their guidance was instrumental in the development of the vision and mission.

Strategic planning also requires commitment and input from Georgia DOT senior leadership that 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 for 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

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Department's employees, an internal poll was conducted. The internal poll was a useful tool that allowed each Georgia DOT employee the opportunity to participate and express an opinion about the best proposed direction of the agency. The result was a mission statement that represented the views of all levels of the agency.

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 is important that the Department's vision statement captures 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 discussions that took place over several months, the best descriptors of why the Georgia DOT exists were defined. Those descriptors included 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 in conducting 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 GDOT's Strategy Map
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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 Department must take to succeed in accomplishing its goals and identifies the potential risks that might prevent accomplishing the goals and objectives.

Table 4.1 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
Driver behavior

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
Maintain a program and funding for snow and ice storm events in Georgia

An enterprise asset management system
Adequate preservation funding

Risks
Maintaining adequate funding for preservation

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Goals

Objectives

Critical Success Factors

Planning and

From July 1, 2013 through June

constructing the best 30, 2017, complete Plan

set of mobility-

Development Process such that

focused projects we project right of way and

can, on schedule

construction funds are authorized

per the programmed year 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 working towards completion of the I-75 / I-575 NW corridor, the I-75 South corridor, the I-85, and the I-85 Georgia Express Lane Extension

From July 1, 2013 until June 30, 2017 support implementation of at least one objective from SSTP/SWTP

Agency-wide focus on project delivery and implementing procedures to enhance delivery and control costs

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

5.0 Strategies
The Department has identified strategies that, when implemented, will move the agency in the direction of the established objectives and goals. Georgia DOT has also identified measures to assess how well the agency is implementing these strategies. Each of the strategies has been assigned to a Division or an Office for implementation and tracking. The 2016 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

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 December 31, 2017, decrease fatalities by 10% (from 1199 fatalities in CY 2012 to 1079 fatalities in CY 2017) using a 5 year rolling average.

Continue implementation of the GA Strategic Highway Safety Plan (SHSP)
Monitor and execute the "Drive Alert Arrive Alive" campaign

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

Permits and Operations (Traffic Operations)

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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 Engineering bridges that meet or exceed (Bridge) GDOT's standards (Target: 85%)

Goal 3 Strategies....cont

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

Objective

Action Step/Strategy

From FY 2014 to FY 2017, Implement enterprise asset implement seven (7) modules management system in the GAMS system: Bridge Inventory Bridge Analyst Pavement Management Maintenance Management Fleet/Equipment Manager Sign Inventory Signals/ITS Manager

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

Division (Office) Responsible
Information Technology

Maintain a program and funding for snow and ice storm events in Georgia

Prepare for inclement

Maintain a program and

weather

funding for inclement

weather (Target: Ongoing

Annual Evaluation of Lessons Strategy)

Learned

Permits & Operations

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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 process such that project right of way and construction funds are authorized per the programmed year in the currently approved STIP

Monitor Right of Way (ROW) and Construction (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

From July 1, 2013 through Execute Managed Lane

June 30, 2017 make

System Plan

significant progress in

implementation of MLSP

projects by working towards

completion of the I-75 / I-575

NW corridor, the I-75 South

corridor, the I-85, and the I-85

Georgia Express Lane

Extension

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

Construction

Significant progress on I75 northwest Corridor project and I-75 south corridor

Innovative Delivery

From July 1, 2013 until June

30, 2017 support

Support Georgia's economic

implementation of at least one growth by increasing border

objective from SSTP/SWTP to border and interregional

connectivity

Number of the State Freight Network projects included in the STIP

Planning

The strategic objectives identified in this plan will be used as a specific, measurable, and time-bound 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 quarterly and reported to the Georgia Office of Planning and Budget (OPB) upon their request in order to create a transparent process and to provide accountability to the public.

6.0 Environmental Scan (SWOT Analysis)

There are demographic, political, and

economic trends that both shape the need for the services provided by the Georgia DOT and influence how Georgians perceive the Department. Prior to

Environmental scan provides context for
Georgia DOT

determining the optimal strategies to strategic planning

achieve the goals adopted by the

Department, a scan of 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 2014 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

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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.
Figure 6.1 Georgia's Population Growth 1970 - 2014

12,000,000 10,000,000
8,000,000 6,000,000 4,000,000 2,000,000
0

4,589,569 1970 1980

1990

2000

10,097,343 2010 2014

Source: U.S. Census Bureau.
Population growth also has a direct bearing on transportation demand. Georgia's population reached 10 million in 2014, 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 experienced a slowdown in the pace of its population growth. Figure 6.2 compares the annual population growth rates over the past 24 years for both Georgia and the U.S. Indications are that Georgia's recent population trends are slowing down and approaching those of the nations'.

Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. 1991-2014
3%

2%

1%

0%

UNITED STATES Source: U.S. Census Bureau.

GEORGIA

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 growing population translates to more drivers and more trips. In 2014, for the second consecutive year, Georgia was identified by the Site Selection Magazine as the most competitive state in the nation. 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
According to the Department of Labor, the Georgia economy employed approximately 4.37 million people in January 2014. Similar to population, Georgia has also experienced substantial long-term increases in jobs by almost doubling them between 1980 and 2014 (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 had 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 6.4).

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Figure 6.3 Georgia Employment
1980-2015
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Jan-80 Jan-90 Jan-00 Jan-10 Jan-15
Source: Bureau of Labor Statistics, Current Employment Statistics (CES).

Figure 6.4 Jobs Growth, Georgia Compared to the U.S. 1990-2015 (Jobs Growth Index, 1990 = 1.00)

1.5 1.3

1.1
0.9 1990

1995

2000

Georgia

2005

2010

United States

2015

Source: GDOT Analysis using the data from the Bureau of Labor Statistics, Current Employment Statistics (CES).
Georgia's unemployment rate has exceeded the nation's since 2008 (Figure 6.5), 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 6.5
12 10
8 6 4 2 0

Unemployment Rate, Georgia Compared to the U.S., 2000-2014 Unemployment Rates in Percent

Georgia

U.S.

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS), Annual Average Statewide Data

Income While the jobs and population growth are key factors contributing to transportation demand, people ultimately need higher income levels to justify increased consumption. As income levels rise, consumers have means to increase spending on homes, leisure activities, and shopping. This, in turn, stimulates business investment and further feeds economic growth. Income growth in Georgia has lagged since 2000 and there is a widening gap between the State and the country. Per capita personal income in Georgia was $39,097 in 2014, ranking Georgia 40th in the US. In 2004, the per capita personal income of Georgia was $31,508 resulting in a rank 32nd in the United States. Per capita personal income growth in Georgia has been slower than most U.S. states and recorded a decline during the recession (see Figure 6.7). Between 2004 and 2014, per capita personal income compound growth rate was 2.2 percent. By comparison, per capita income levels have experienced a compound annual growth rate of 3 percent in the U.S. over the same period. Improvements in Georgia's transportation infrastructure (e.g., capacity, connectivity, and access) enhance the movement of people and goods. Combined with other

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factors such as economic development, workforce, and educational strategies, this can result in a multi-pronged approach invigorating economic opportunity in Georgia and ultimately increasing income levels.

Figure 6.6 Per Capita Personal Income, 1990-2014 Georgia Compared to the U.S.

$50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000

$19,584 $17,732

$44,765 $39,097

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Georgia

United States

Source: Bureau of Economic Analysis. Note: All dollar estimates are in current dollars and not adjusted for inflation.

Gross Domestic Product
Georgia's transportation system underpins the State's approximate $455 billion (2013 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 less than the nation's between the years of 2000-2014 (Figure 6.7). Because Georgia combined fast population growth with slow economic growth over the past decade, the State's per capita gross product registered a 7 percent drop between 2000 and 2013 (Figure 6.8).
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 and reliable travel for

workers. Georgia's transportation network provides the foundation on which industries crucial to the State economy can grow.
Figure 6.7 Georgia GDP Growth Compared to the U.S. 1997-2013 (GDP Growth Index, 1997 = 1.00, Chained 2009 dollars)
1.50 1.40 1.30 1.20 1.10 1.00

Georgia

United States

GDOT Analysis using the data from the Bureau of Economic Analysis. Last updated: June 11, 2014 advance statistics for 2013 and revised statistics for 1997-2012.

Figure 6.8 Real GDP Per Capita, 1997-2013 Georgia Compared to the U.S.
$60,000
$55,000
$50,000
$45,000 $40,861 $40,000
$40,586
$35,000
$30,000

Georgia

United States

Source: Bureau of Economic Analysis; chained 2011 dollars.

$49,115 $42,494
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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, trade, and transportation and utilities, etc.) 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 finance, insurance and real estate, which accounted for 18.2 percent of Georgia's GDP. The other significant contributors to Georgia's economy were wholesale and retail trade, professional services (including engineering, architecture, scientific research, accounting, and marketing), government, and manufacturing sectors. The services sectors, including professional services, continue to be the largest contributors to Georgia's overall economic output. Freight service 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 6.10).
Figure 6.9 shows the contribution of each major industry sector to Georgia's GDP compared to the U.S.

Figure 6.9 Structure of the Georgia Economy Compared to the U.S., 2013 Industry Share of the Economy
20% 15% 10%
5% 0%

Georgia United States Source: GDOT analysis using the data from the Bureau of Economic Analysis. Figure 6.10 Georgia's Transportation Sector Compared to the US, 2012
40%

20%

0%

Air

Rail

Water Truck Transit

Other

& Ground Pipeline Transp. &

Passenger

Support

Georgia United States

Activities

Source: GDOT analysis using the data from the Bureau of Economic Analysis.

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Strategic improvements to Georgia's transportation system to improve the movement of goods and people can help 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
In recent years, the Georgia General Assembly has enacted important transportation legislation from governance reform to regional transportation funding. In 2015, the General Assembly passed and the Governor signed HB 170, the Transportation Funding Act of 2015. HB 170 is expected to generate around 900 million dollars in additional transportation funds by increasing the state's gas tax and imposing new fees on electric cars and hotel/motel lodging fees. Other fund generating activities include an annual fee for heavy vehicles, the elimination of tax credits for low/zero emission vehicles and the elimination of a tax break on qualified jet fuel sales. It is important to note that fund could be made available in FY2016 amended budget.
In 2010, HB 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 is the responsibility of Georgia DOT, working with local governments. HB 277 (TIA) has required 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.
In 2015, the TIA was amended to allow counties to continue with a county T-SPLOST (Transportation Special Local Option Sales Tax) in lieu of participating in a regional T-SPLOST and allows a fractional percentage up to one percent with a maximum levy period of up to five years.

The following bills passed by the Georgia General Assembly during the 2015 Legislative Session will also have significant impact on transportation in the State and the operational procedures of Georgia DOT: SB 125 (SRTA)
o Updates the state's tolling power to address managed lanes and other tolling circumstances by removing the requirement of debt to be issued.
o Defines managed lanes as lanes which utilize tools to manage the flow of traffic.
o Clarifies `no vehicle may drive through, around, or under any barrier or closed or moving gate of a managed lane.'
SB 169 (GDOT's annual housekeeping bill that enacts operational changes at the agency to include the following): o Eliminates the need to designate local roads as temporary state routes for purposes of purchasing local right-of-way with state or federal funds. o Clarifies GDOT's ability to utilize the service of real estate agents. o Allows condemned billboards to be relocated to a legal, adjacent parcel with local compensation required under certain circumstances. o Allows large commercial delivery companies to utilize personal transportation vehicles (PTVs) in residential subdivisions with speed limits of 25MPH or less.
Other Transportation Legislation o HB 319: Ratifies the Governor's December 5th Executive Order suspending the automatic changes to the state motor fuel pre-paid rate. o HB 477: Authorizes GDOT, counties, and municipalities to provide disposal notice of a roadway located in a subdivision to a duly formed property owner's association for acquisition.
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6.4 FISCAL INDICATORS
Georgia DOT's current annual budget is around 2.2 billion dollars. Its revenues come from state motor fuel taxes and federal funds. The federal fund dollars are called "reimbursements," because the State must first pay for construction work before receiving the reimbursement from the Federal government. The typical reimbursement to the State is 80 cents on the dollar due to the 20 percent match requirement. Figure 6.11 presents GDOT's total revenues from State and Federal sources.
Figure 6.11 Georgia DOT Revenues FY 2008-FY 2014

$1,600,000,000

$1,200,000,000

$800,000,000

$400,000,000

$0
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY2014

State Motor Fuel Collections

Federal Reimbursements

Source: Georgia Department of Transportation, Budget Office
The federal reimbursements in the fiscal years 2010, 2011, and 2012 are a reflection of the increased spending from the American Recovery and Reinvestment Act. The long-term outlook for Federal Funds continues to be uncertain as the current level of transportation spending cannot be sustained by the Federal highway trust fund as currently configured.
Even though motor fuel tax collections have recovered since the recession, they are hardly keeping pace with Georgia's growing transportation needs. The popularity of fuel efficient and electric vehicles and travel numbers lagging historic travel growth might cause motor fuel tax collections to flatten or possibly decline.
Figure 6.12 indicates the average appropriations from each funding source from FY 2008 to FY 2014. As shown, the majority (56 percent) of Georgia

DOT's budget appropriations come from federal funding and 43 percent come from motor fuel taxes (MFT). Agency funds, intrastate transfers and appropriations from the State General Fund (labeled `other' on the graph) combine for a total of one percent.
The dependence on Federal funds and MFT for transportation makes Georgia vulnerable to any changes in the policies that impact these transportation funds.

Figure 6.12 Average Appropriations from FY 2008 to FY 2014

State General Funds 1%

Other Funds <1%

Federal Funds 56%

State Motor Fuel Funds
43%

Source: Georgia Department of Transportation, Budget Office The Moving Ahead for Progress in the 21st Century Act (MAP-21), was signed into law by President Obama on July 6, 2012. Funding surface transportation programs at over $105 billion for fiscal years 2013 and 2014, MAP-21 is the first multi-year highway authorization enacted since 2005. The bill has been extended, and there is not a timeline for a new bill.
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Georgia DOT Debt Payments
The Department's overall available funds are first used to repay debt services. General Obligation Bonds (GO) and Guaranteed Revenue Bonds (GRB) must be repaid using State Motor fuel dollars, while Grant Anticipation Revenue Vehicle Bonds (GARVEEs) are repaid using both Federal Obligation funds and State funds. The yearly debt obligations are indicated in the Figure 6.13.
Figure 6.13 GDOT Debt Service Payments

$200,000,000

$150,000,000

$100,000,000

$50,000,000

$0

FY14

FY15

FY16

GO GRB GARVEE

**GO Bond Debt Service appropriated directly to GSFIC ***GRB and GARVEE Debt Service appropriated to GDOT Payments to SRTA Program Debt Service information provided by GSFIC and SRTA

Funding Challenges and Opportunities Ahead
Georgia's transportation system is heavily dependent on Federal funding, with approximately 56 percent of the Department's overall transportation budget funded from the Federal Highway Trust Fund. A closer look at the Capital, Maintenance and Local Roads Programs shows that about 75 percent of their funding comes from the Federal Trust funds (Figure 6.14).
The 2015 legislation House Bill 170 (HB 170), mentioned in the Legislative section of this plan is expected to generate around 900 million dollars in additional transportation funds. This funding is expected to help the Department derive additional revenues for the needed improvements to Georgia's transportation infrastructure.

Figure 6.14 FY2014 Capital Programs by Fund Source
25% 75%

State Funds Federal Funds

Program Capital Construction Capital Maintenance Local Roads
Total

Federal Funds $675,252,699 $128,218,385 $32,758,670
$836,229,754

State Funds $213,393,476 $60,560,150 $4,854,565
$278,808,191

Georgia relies heavily on reimbursements from the Federal Highway Administration (FHWA). However, over the past years, the Highway Trust Fund has been and continues to be on the verge of insolvency. The long term solutions have not yet been identified. Instead, temporary extensions granted by Congress are making long-term planning difficult and are slowing or terminating work on needed projects. In addition, projects using federal funds are subject to the National Environmental Policy Act (NEPA), and often require multiple approvals from various federal agencies.

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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. Georgia DOT's operations are supported by a diverse workforce of men and women who serve in a variety of career fields including engineering, environmental, administration, planning, technical and manual labor skills. In addition, the Department supplements its workforce with consultants and contractors to provide project development support including design and construction.
The number of employees at Georgia DOT has been declining since 2007, and it continues to decline each year. As of April 30, 2015, Georgia DOT had 4,099 employees.
Figure 6.15 Georgia DOT Employees

6,000 5,000 4,000 3,000 2,000 1,000
0

2007 2008 2009 2010 2011 2012 2013 2014 2015

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 and 2015 are as of April 30, 2014 and April 30, 2015 respectively.
Age of the Workforce
The average age of the Georgia DOT workforce is 45 years old and around 15% percent of the workforce is within five years of retirement. Forty six percent of the senior leadership at Georgia DOT is within five years of retirement and 45 percent of Georgia DOT office heads are within five years of retirement.

Workforce Challenges Over the last several years, the largest turnover has been in the area of maintenance, specifically for the Equipment Operators' positions. These positions have also been challenging to fill. Some factors impacting the Department's ability to fill these positions include: the limited applicant pool in certain rural areas, the selected applicants not passing the required reference checks, and the inability of the entry level maintenance positions to obtain their Commercial Driver's License (CDL) within the required timeframe. In the past year, Georgia DOT has also experienced high turnover in the Highway Emergency Response Operator (HERO) positions and faced recruitment challenges in filling these positions as well. The Department is reviewing turnover data to help analyze causes and to develop strategies to address them. The Department is also exploring alternative recruitment strategies to aid in filling positions. Compensation plays a major role in the Department's ability to attract and retain well qualified employees for critical positions. The other most difficult positions to fill are in the areas of engineering, environmental, and traffic operations (HERO and Traffic Signal Technicians).
Figure 6.16 GDOT Staffing Changes in Key Functions
3,000
2,000
1,000
0
Maintenance (District Engineering (GO Construction (District Maintenance/MAU) Engineering, Bridge Field Construction)
Inspection, Chief Engineer Special Staff, Traffic Design, District
Preconstruction)
7/1/2000 4/1/2015
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Addressing Workforce Challenges
Right Sizing, Targeted Recruitment and Specialized Training Programs
As a result of our workforce planning initiative, Georgia DOT continues to seek innovative and efficient strategies to work smarter with the current staffing levels while closing the resulting skills gap. The Department wants to ensure minimal impacts to operations while always keeping safety a priority.
The right-sizing staffing initiative took place across the Department. As a part of this initiative, each office and district identified the minimum number of employees required to meet their strategic objectives. This required offices and districts to re-evaluate their business operations with limited staffing levels.
The Department has implemented targeted recruitment initiatives to address hard to fill positions. This includes partnering with external organizations like the Department of Labor, Good Will and technical colleges as well as utilizing Veterans Career Fairs to fill entry level maintenance and Highway Emergency Response Operators (HERO) positions.
Georgia DOT is also revamping the training program for entry level engineers in order to provide a more enriched learning experience for the employees as well as to give them exposure to various areas in the Department. The goal is to ensure that operational needs are met while creating an enriched program tailored to today's workforce. This will enable the entry level engineer to have a more focused training and the ability to more freely move into different areas of interest within the Department and help fill skill-gaps where needed.
Team Georgia
The Department is utilizing the new Team Georgia Careers applicant tracking system. This system will allow the Department to streamline the prescreening process and to track the recruiting and onboarding of applicants, especially those in critical job areas. This information can be used to set realistic metrics, to streamline our hiring processes and to focus more on employee development and retention strategies.

Workforce Development To address the current workforce challenges, the Department is providing training and professional development activities to enhance the skill and knowledge levels of its current workforce. Succession planning, employee development (training, mentoring and job shadowing), knowledge transfer, and re-structuring of programs or positions are just some of the initiatives that Georgia DOT is offering to address the loss of experienced employees. These programs aid in closing the skill and competencies gaps and allow employees interested in career advancement to enhance their skills and apply for higher level positions when they become available. In addition, the Department is always exploring new ways to recognize its employees through non-monetary rewards.
Employee Survey In order to better understand the needs of its workforce and to make improvements, the Department conducts employee surveys. These surveys have been used as a management tool to better assess the needs of Georgia DOT's current workforce. In order to improve intraDepartmental communications and transparency, the most current 2014 employee survey results were disseminated not only to the upper management team, but were also made available to all Georgia DOT employees. As a result of the survey, the Department has initiated a study of how to better retain its 5-10 year tenure employees, and is enhancing its workforce professional development programs, as mentioned in the paragraph above.
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7.0 Summary
The FY 2013-2017 plan establishes the primary responsibility of the agency to plan, construct and maintain the Georgia State transportation network. It also demonstrates that making Georgia DOT a better agency, better serves the public.
This plan identifies who Georgia DOT serves and keeps the focus on the customers 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."
The Department is committed to efficiently implement its Strategic Plan and to report its effectiveness through the use of performance metrics. Results of these metrics are reported to the Governor's Office of Planning and Budget and the public through the Georgia DOT performance dashboard.
The Department will continue its efforts to implement its Strategic Plan with a goal of providing Georgia the best transportation system possible.