April 4, 2009
In the final week of the 2009 session of the Georgia General Assembly, lawmakers approved an $18.6 billion budget for fiscal year 2010 and passed a package of tax cuts designed to spur the economy. But for the second year in a row, the Senate and House leadership failed to agree on a solution for Georgia's transportation funding problem.
The Senate voted two months ago on a transportation funding plan, one of the first actions we took this session, calling for a one-cent sales tax to be voted on, collected and invested on a regional basis. Under SR 44, which I co-sponsored, counties would have been able to join together and levy the special sales tax - if approved by voters in those counties - to address specific transportation needs, if any, at the local level.
The House of Representatives, meanwhile, insisted on a statewide sales tax to finance a pre-determined list of transportation projects in selected areas. Under the House plan, HR 206, all Georgians would have had to pay the tax, even if their local areas would receive no benefit from the additional funding.
The two houses were unable to work out a compromise plan, while the governor, lieutenant governor and House speaker were promoting separate legislation dealing with control over transportation revenues and road-building priorities.
SB 200 passed in the House on Wednesday by the slimmest of margins, with the speaker casting the deciding vote after he allowed an extraordinary amount of time for members to switch their votes in favor of the governance bill. The Senate gave final passage to SB 200 on a party-line vote Friday.
The legislation creates a new position of Director of Planning at the Department of Transportation, who is appointed by the governor. They are charged with developing a long term plan for the DOT which is submitted to the governor and General Assembly for approval. But DOT board members and rank-and-file Senators and House members, who have a say in what projects are funded now, would have their voices limited under the bill. Top Senate and House leaders and the governor would have greater authority over the DOT appropriations process. The DOT commissioner would still be appointed by the board but would only be responsible for running the department and implementing the long range plan. Members of the General Assembly currently band together to elect DOT board members from the state's 13 congressional districts.
The failure to reach a funding compromise might also have a negative impact on MARTA, which was counting on legislation to allow the agency to use more sales tax revenue for operating expenses as opposed to capital expenditures. That proposal, SB 120, which I introduced and passed in the Senate, also fell victim to the breakdown in transportation negotiations, which would result in significant cuts in services, according to MARTA officials.
On the session's final day, legislators agreed on fiscal year 2010 budget that includes $1.3 billion in federal stimulus funds and reflects deep spending cuts to address a $3 billion shortfall in state revenues. Lawmakers did add back funds to avoid Gov. Perdue's proposed 10 percent cut in Medicaid reimbursements to hospitals and 6 percent cut in repayments to physicians. The Senate also added $140 million to the budget to take care of an expected financial deficit for Medicaid next year due to rising unemployment in the state.
Legislative budget writers also rejected the governor's plan to eliminate school nurses, adding $30 million back to the budget for that program. Unfortunately, HB 119 fails to include funding for the Homeowner Tax Relief Grants the state provides to local governments. The result will be a $200-$300 property tax increase for the average Georgia homeowner later this year.
The House and Senate also voted for a package of tax cuts and job tax credits for Georgia businesses. HB 481, if signed into law by the governor, would provide a tax credit of $2,400 to businesses when they hire an unemployed worker, suspend the collection of $100 corporate filing fees, cut the capital gains tax by 50 percent and eliminate corporate net worth taxes for businesses. The package is designed to stimulate the state's economy and put more Georgians back to work during this period of record unemployment.
Also receiving final approval was HB 120, which renews Georgia's sales tax holiday periods. If the governor signs the bill, Georgians can shop for school supplies and clothing without paying a sales tax July 30-Aug. 2. The tax-free period for energy-efficient products would be Oct. 1-4.
Other legislation approved during the final week of the session includes:
SB 117, which would enhance the "Made in Georgia" program by creating a web site to promote sale of products manufactured in the state.
HR 161, which would provide $500,000 in compensation to John Jerome White, who spent more than 20 years in prison before DNA evidence exonerated him of a 1979 rape conviction.
HB 168, an ethics bill that would require the Department of Revenue to release the names of legislators who have not paid state income taxes.
HB 228, which would reorganize the state Department of Human Resources.
HB 310, which would expand the recycling program in state buildings.
HB 388, which would authorize the adoption of human embryos.
HB 581, which would expand unemployment benefits by accepting federal stimulus funds.
Among the bills that failed to win final approval were SB 67, which would have required driver's license examinations to be conducted in English only; SB 42, which would have stripped the Georgia Public Defender Standards Council of its authority; and HB 243, which would have cut the additional pay for educators who earn national board certification.
District 6
P.O. Box 1781
Smyrna, GA 30081
Phone: 770.436.0699
Fax: 770.436.0699
Email: doug.stoner@senate.ga.gov
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