Strategic plan [2016]

FY 2013-2017 Strategic Plan
FY 2017 Strategic Plan Update
Summer 2016
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Table of Contents
Executive Summary.................................................................................................. ES3 Linking to Georgia's Strategic Plan..................................................................ES3 Strategic Planning Process.................................................................................ES4 Strategic Plan .......................................................................................................ES4
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 ............................................................................................ 18 6.1 Demographics .............................................................................................. 18 6.2 Economic Indicators .................................................................................... 20 6.3 Legislation..................................................................................................... 27 6.4 Fiscal Indicators ........................................................................................... 29 6.5 Workforce Trends ...................................................................................... 33 7.0 Summary .............................................................................................................. 37
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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...................................................................ES4 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, 1970-2015. ............................................. 19 Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. ............... 20 Figure 6.3 Georgia Employment, 1980-2016 ............................................................ 21 Figure 6.4 Jobs Growth, Georgia Compared to the U.S, 1990-2015..................21 Figure 6.5 Unemployment Rate, Georgia Compared to the U.S., 2000-2015...... 22 Figure 6.6 Georgia GDP Growth Compared to the U.S., 2000-2015..................... 23 Figure 6.7 Real GDP Per Capita, 1997-2014 ............................................................. 23 Figure 6.8 Structure of the Georgia Economy Compared to the U.S......... ....... 25 Figure 6.9 Georgia's Transportation Sector Compared to the U.S.................... 25 Figure 6.10 Georgia DOT Revenues............................................................................ 29 Figure 6.11 Total FY 2015 Budget by Fund Source ................................................... 30 Figure 6.12 GDOT Debt Service Payments.................................................31 Figure 6.13 FY2014 Capital Programs by Fund Source .................................32 Figure 6.14 Georgia DOT Employees.......................................................33 Figure 6.15 GDOT Staffing Changes in Key Functions.................................34
ES-1

ES-2

Executive Summary
The Georgia Department of Transportation (Georgia DOT) annually 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 its 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, where it wants to be 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. In fact, the 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-3

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 help the Department to achieve its established goals.
Figure ES.1 GDOT's Strategy Map
ES-4

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 and goods safely and efficiently

in the State. Strategic planning

establishes an accountable framework

that helps focus the agency's actions

and clarifies 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 transparent and effective.

The Department undertakes strategic planning for the following reasons:

to meet statutory requirements,

to establish common goals and objectives for the agency, and

An Effective Strategic Plan Will:
Align with the State's goals and priorities
Align organizational units
Increase the time spent on core business activities
Manage expectations
Make the best use of resources
Enable an agency to conduct business in a transparent and accountable environment

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 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. The goals 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?
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 3,958 Employees 17,907 State Highway System Miles 6,653 State owned Bridges 87,461 County Road Miles 19,472 City Street Miles 88 Certified HERO Operators 16 Urban Transit Programs 111 Rural Transit Programs 540 Miles of Light Density Rail 81Active Park & Ride Lots 104 Publicly Owned Airports

1.2 FROM STRATEGIC PLANNING TO ASSET 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 has implemented an enterprise asset management system. The first phase of the system includes 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 semi-annual 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 four goals are:
1. Making GDOT a better place to work will make GDOT a place that works better
2. Making safety investments and improvements where the traveling public is most at risk
3. Taking care of what we have, in the most efficient way possible 4. Planning and construction the best set of mobility-focused projects
we can, on schedule
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2.0 Strategic Plan Development

The 2013-2017 Strategic Plan was developed by

gathering 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 goals and objectives and to hold division directors and office managers accountable.

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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 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 is to state where the agency wants to be in the long term. Connecting transportation's role with the economic success of the State of Georgia is an important aspiration. Therefore, the Department's vision statement captures the Governor's vision to enhance Georgia's competitiveness.
Georgia DOT's vision statement: Enhancing Georgia's competitiveness through leadership in transportation
3.2 MISSION
At its simplest, the mission statement answers why the Department exists. The best descriptors of why the Georgia DOT exists include 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: 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 core values is to guide agency employees in conducting their day-to-day business. Core values drive the culture of an organization and remind employees of what is important. As such, 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. 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 set four broad, long-term goals that are divided into a number of corresponding objectives and action steps (strategies). The "Strategy Map" in Figure 4.1 is a graphical representation of all of the core 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 From July 1, 2016 until June 30, Committed



a better place to work 2018 implement at least two

management

will make Georgia DOT a place that works better

initiatives Department-wide as a result of the 2016 Employee Survey

Educating employees on the positive changes

taking place as a

result of

employee survey

Making safety

Decrease fatalities by 41 in



investments and

calendar year 2016 (Target: 1391)

improvements where

the traveling public is

most at risk

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 85% of Stateowned bridges to meet or exceed the GDOT's standards (strength and condition)
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, authorize Right of Way

set of mobility-

(ROW) and construction funds,

focused projects we per STIP

can, on schedule By the end of FY 2017, 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, and the I-85 Georgia Express Lane Extension

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 help the agency achieve established goals and objectives. 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 2017 strategies for each goal are identified in Table 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

From July 1, 2016 until June Administer the 2016 30, 2018 implement at least 2 Employee Survey initiatives Department wide as a result of the 2016 Employee Survey

Number of improvement initiatives implemented as a result of the employee survey (Target 2)

Organizational Performance 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

Decrease fatalities by 41 in calendar year 2017

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 41 fatalities as compared to previous calendar year)

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

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 Preserve Interstate 30, 2017, maintain Georgia's Pavement 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.

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 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%)

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

Prepare for inclement weather
Annually evaluate "Lessons Learned"

Maintain a program and funding for inclement weather (Target: Ongoing Strategy)

Permits & Operations

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, authorize Right of Way and Construction funds per STIP

Monitor Right of Way (ROW) and Construction (CST) authorization 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 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, and the I-85 Georgia Express Lane Extension

Execute Managed Lane System Plan (MLSP)

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

Innovative Delivery

From July 1, 2013 until June Improve port-rail access,

30, 2017 support

storage and operating

implementation of at least one efficiencies

objective from SSTP/SWTP

Number of the State

Planning

Freight Network projects

included in the STIP

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 and reported to the Georgia Office of Planning and Budget (OPB) upon request in order to create a transparent process and to provide accountability to the public.

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6.0 Environmental Scan

There are demographic, political, and

economic trends that both shape the need for the services provided by 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. 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 play a fundamental role 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 2015 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.

Figure 6.1 Georgia's Population Growth 1970 - 2015

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

1970 1980 1990 2000 2010 2015

Source: U.S. Census Bureau.
Population growth also has a direct bearing on transportation demand. Georgia's population reached estimated 10.2 million in 2015, and ranks the eighth most populous 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 United States. Indications are that despite Georgia's recent population trends slowing, they remain slightly higher than the nations'.

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Figure 6.2 Annual Rates of Population Growth, Georgia and the U.S. 1991-2015
3%

2%

1%

0%

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

UNITED STATES Source: U.S. Census Bureau.

GEORGIA

6.2 ECONOMIC INDICATORS
Despite a declining population growth rate, Georgia's population is still growing. Consequently, demand on the State's transportation system continues to grow as growing population translates to more drivers and more trips. During the two consecutive years, 2013 and 2014, Georgia was identified by 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 4.54 million people in January 2016. Similar to population, Georgia has also experienced substantial long-term increases in jobs by almost doubling them between 1980 and 2015 (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).

Figure 6.3 Georgia Employment
1980-2016
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-16
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)
1.59 1.49 1.39 1.29 1.19 1.09 0.99

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 2015

Georgia

United States

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

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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 emerge as job growth and the economy begin to recover and grow more robustly.

Figure 6.5 Unemployment Rate, Georgia Compared to the U.S., 2000-2015
12% 10%
8% 6% 4% 2% 0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Georgia

United States

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

Gross Domestic Product
Georgia's transportation system underpins the State's approximate $478 billion 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, has been growing less than the nation's since 2009 (Figure 6.6). Because Georgia combined fast population growth with slow economic growth over the past decade, the State's per capita gross product registered a 6 percent drop between 2000 and 2014 (Figure 6.7).
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 6.6 Georgia GDP Growth Compared to the U.S. 1997-2014 (GDP Growth Index, 1997 = 1.00, Chained 2009 dollars)
2.2 2
1.8 1.6 1.4 1.2
1

Georgia

United States

GDOT Analysis using the data from the Bureau of Economic Analysis. Last updated: December 10, 2015

Figure 6.7 Per Capita Real GDP, 1997-2014 Georgia Compared to the U.S.

60,000 55,000 50,000 45,000 40,000 35,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

United States

Georgia

Source: Bureau of Economic Analysis; chained 2009 dollars. Last updated December 10, 2015 revised statistics for 2007-2014

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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 19.2 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 6.9).
Figure 6.8 shows the contribution of each major industry sector to Georgia's GDP compared to the U.S.

Figure 6.8 Structure of the Georgia Economy Compared to the U.S. Industry Share of the Economy
20%
10%
0%

Georgia United States Source: GDOT analysis using the 2014 data from the Bureau of Economic Analysis. Figure 6.9 Georgia's Transportation Sector Compared to the U.S.

50%

25%

0%

Air

Rail Water Truck Transit Pipeline Other

and

Transp.&

Ground

Support

Passenger

Activities

Georgia United States

Source: GDOT analysis using the 2013 data from the Bureau of Economic Analysis.

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.

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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. The Transportation Funding Act is expected to generate sustainable funds for transportation investment 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 the enacted amended Fiscal Year 2016 budget is the first budget to reflect additional revenues resulting from the Transportation Funding Act of 2015.
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 2016 and 2015 Legislative Session will also have significant impact on transportation in the State and the operational procedures of Georgia DOT:
2016 Session Highlights S.B. 307
o Authorizes multi-message signs at bus shelters that conform to existing outdoor advertising restrictions except for the spacing requirement.
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S.B. 346 o Exempts transportation projects of $100M or less from the requirement to have a consolidated report of environmental impacts under the Georgia Environmental Protection Act. All projects will still be subject to various environmental requirements such as soil erosion.
2015 Session Highlights
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.

6.4 FISCAL INDICATORS
Georgia DOT's total FY 2015 annual budget was around $2.7 billion. The revenue sources are state motor fuel taxes and federal funds. More than 99 percent of the funding was derived from motor fuel taxes, federal funds and other sources; less than 1 percent came from State general funds. The federal funds 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 6.10 presents GDOT's total revenues from State and Federal sources.
Figure 6.10 Georgia DOT Revenues FY 2008-FY 2015

1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000
800,000,000 600,000,000 400,000,000 200,000,000
0

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

State Motor Fuel Collections

Federal Reimbursements

Source: Georgia Department of Transportation
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.

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Figure 6.11 indicates the average appropriations from each funding source in FY2015. As shown, the majority of Georgia DOT budget appropriations come from federal funding.
The dependence on Federal and Motor Fuel Tax funds for transportation makes Georgia vulnerable to any changes in the policies that impact these transportation funds.
Figure 6.11 Total FY 2015 Budget by Fund Source

Motor Fuel Funds 37%

FHWA Funds 56%

Other

Fu4n%dsGSetnaetreal

Funds FTA Funds

1%

1%

FAA Funds 1%

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 four times.
On December 4, 2015, President Obama signed into law the Fixing America's Surface Transportation Act, or "FAST Act." It is the first law enacted in over ten years that provides long-term funding certainty for surface transportation allowing States and local governments to move forward with critical transportation projects, like new highways and transit lines, with the confidence that they will have a Federal partner over the long term2.
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

2 https://www.transporation.gov/fastact

Anticipation Revenue Vehicle Bonds (GARVEE) are repaid using both Federal Obligation funds and State funds. In fiscal year 2015, $381 Million of the $2.7 billion was allocated to debt service leaving about $2.3 billion to allocate towards improving Georgia's transportation system. The yearly debt obligations are indicated in the Figure 6.12.
Figure 6.12 GDOT Debt Service Payments

$200,000,000

$150,000,000

$100,000,000

$50,000,000

$0

FY15

FY16

FY17

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

Georgia DOT must also use motor fuel dollars to provide matching funds to the State's FHWA funded projects and to fund the Department's annual general operations budget. Over the years, state motor fuel funds have failed to keep up with Georgia's growing transportation needs.

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 6.13). The 2015 legislation House Bill 170 (HB 170), mentioned in the Legislative section of this plan, is expected to generate sustainable funds for transportation investment. This funding is expected to help the
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Department derive additional revenues for the needed improvements to Georgia's transportation infrastructure.
The enacted Amended Fiscal Year (AFY) 2016 Budget is the first budget to reflect additional revenues resulting from the Transportation Funding Act of 2015. These additional revenues are approximately $758 million for a total state funds appropriation of $1.6 billion. With federal funds, the total AFY16 appropriation (less payments to SRTA) is approximately $3.15 billion.
Figure 6.13 FY2014 Capital Programs by Fund Source

State Funds 25%

Federal Funds 75%

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. In addition, projects using federal funds are subject to the National Environmental Policy Act (NEPA), and often require multiple approvals from various federal agencies.

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 May, 2016, Georgia DOT had 3,958 employees.
Figure 6.14 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 2016
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.
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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 6.15 GDOT Staffing Changes in Key Functions

3000 2000 1000
0

Maintenance Engineering Construction 7/1/2000 4/1/2015

Addressing Workforce Challenges
Right Sizing, Targeted Recruitment and Specialized Training Programs
As a result of GDOT's workforce planning initiative, the Department continues to seek innovative and efficient strategies to work smarter with the current staffing levels while closing the resulting skills gap. The purpose is 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 to provide a more enriching 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.
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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. Employee development (training, mentoring and job shadowing), knowledge transfer, and restructuring 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 assess the needs of its workforce and to make improvements, the Department conducts employee surveys. The surveys are used as a management tool to better accommodate the needs of Georgia DOT's current workforce. To improve intra-Departmental communications and transparency, the latest (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.

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 and focuses on the customers by 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 implementing its Strategic Plan and to reporting 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.
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