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WEEKLY LEGISLATIVE REPORT – March 20, 2009
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WEEKLY LEGISLATIVE REPORT – March 20, 2009
Budget again full of borrowing, spending and shifting
By Rep. Alan Powell
On March 19, the Georgia House members voted 123-49 to approve an $18.6 billion state spending plan for the next fiscal year, which starts July 1. Despite a shortfall of $3 billion in state revenues because of the economic downturn, this budget plan is still chock full of questionable spending propped up by federal stimulus/bailout money, more bonded debt, school tax shifts and the largest property tax increase in Georgia history.
In other words, the fiscal year 2010 budget is simply one more year of the fiscally irresponsible policies like those of the past six years. Because the leadership has been unable or unwilling to implement zero-based budgeting, the misspent priorities and sweetheart contracts continue on year after year.
A total of $1.4 billion worth of stimulus funding from Washington, D.C., is included in the budget. While the Speaker Richardson railed against Congress and the Administration for “spending like a drunken sailor” during the budget debate, the House Appropriations Committee Chairman acknowledged the stimulus package is bailing the state out this year and “softening” the blow of spending cuts.
This budget fails to fund the Homeowner Tax Relief Grants, which will result in a record $400 million plus property tax increase. The elimination of these grants will cause an estimated $200 to $300 increase for the average Georgia homeowner on the property tax bills sent out by local governments later this year.
Property owners will also feel the brunt of another $197 million in QBE, basic education funding cuts to local schools, along with $112 million cut in school equalization funding, effecting schools and taxpayers in Franklin and Madison counties, which are part of that program. But most alarming of all is that $375 million in stimulus funding replaces normal state funds for public education. My concerns and questions are: What happens in 12-18 months when the stimulus funds run out? How much more will be cut at the state level and shifted to the local level when those federal dollars are gone next year?
Another source of concern about this budget plan is the $1.2 billion the proposal adds in bonded indebtedness. It should concern all of us in times like these to continue borrowing and spending at such a pace. The state budget impacts everyone’s life and pocketbook.
The House budget plan now goes to the Senate, where amendments to the plan are expected. Lawmakers will likely have another opportunity to vote on the state’s economic future after a conference committee works out differences between the House and Senate plans in the final days of the session.
With only four legislative days remaining in the 2009 session of the General Assembly, one issue that remains up in the air is the future of Georgia’s transportation system – how it will be governed and how it will be funded.
The House-approved proposal calling for a statewide one-cent sales tax, HR 206 and HB 277, became the subject of controversy this week following media reports about the $25 billion worth of road projects that would be funded by the sales tax. Near the top of the list is a four-lane expansion of a rural highway in Greene County leading to the Reynolds Plantation golf resort, owned by a family well known as a major contributor in political party financing. The legislation’s author declined to identify exactly who drew up its list of road projects.
But the House proposal has already been rejected by the Senate, whose regional sales tax plan for transportation (SR 44) has gone nowhere in the House. Meanwhile, the governor’s proposal to strip the Department of Transportation Board, whose members are elected on a district basis by legislators, of its authority has likewise run into problems. SB 200, which would create a State Transportation Authority with five members appointed by the governor, three by the lieutenant governor and three by the House speaker, barely passed the Senate and is undergoing substantial changes in the House committee process.
Transportation had been identified as one of the major problems for lawmakers to address this year. But unless something miraculous occurs between now and April 3, it appears the transportation problem will go unsolved in the 2009 session.
During the past two weeks, I have received numerous phone calls from constituents about SB 31, the Georgia Power rate increase legislation. One issue of particular concern in House District 29 is how the expansion of the Plant Vogtle nuclear facility will affect Lake Hartwell’s water supply. In response to my previous column on this issue, the company issued a press statement that acknowledges the power plant expansion could actually double its consumption of water flow from the Savannah River. This continues to be an area of great concern, and everyone with an interest in Lake Hartwell’s water levels should continue to follow the issue closely.
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