Legislators Focus on Governor’s Budget Proposal
 

State legislators spent the week learning more about the Governor’s budget proposal from state agency heads who testified at committee meetings. ACCG also took an in-depth look at the FY2012 Amended Budget and the proposed FY2013 budget to determine areas that will impact local governments.   

While the budgets of many agencies appeared to have increased, closer inspection reveals that the state has made adjustments to cover expenditures such as workers’ compensation and technology that will not result in direct program spending.  In addition, funding was also shifted from one agency to another in many areas.  However, several programs of interest did receive funding, including $20 million in funding for OneGeorgia for rural economic development ($10 million in the Amended Budget and $10 million in the FY2013 Budget), $10 million in grants for accountability courts, $44 million in bonds for the GeorgiaFund and the Georgia Environmental Finance Authority Water Supply Program and increased funding for the Jail Subsidy Program.

To see more information on items in the state budget of interest to counties, click here.  

Momentum Building for Removing Sales Tax on Energy Used in Manufacturing
The Georgia Competitiveness Initiative has developed a statewide economic strategy that focuses on workforce development and education, innovation and infrastructure, government efficiency and global commerce.   One of the recommendations which is generating much attention and has the support of the Governor, as well as the House and Senate leaders, is the proposal to remove the sales tax on energy used in manufacturing. 

Legislation has not been introduced at this time, so ACCG does not have specific details.  However, ACCG has strong reason to believe this legislation will include an exemption of the local sales tax on energy used in manufacturing, which is estimated to have a $108 million impact on local government.  Currently, ACCG does not expect the legislation to include an exemption on energy used in the manufacturing of energy – only on the manufacturing of goods.  ACCG is monitoring this issue closely and will provide more information when the legislation becomes available.  

For an Atlanta Journal Constitution article on this issue that ran today, click here.  

Bill to Eliminate Fees on Property Tax Bills May See Action Next Week
Many counties add fees to property tax bills for services such as trash collection, street lights and other areas.  House Bill 291, sponsored by Representative Brett Harrell, proposes to eliminate the county’s authority to use property tax bills as a way to collect these fees.  Often times, this increases payment compliance and is the most cost-effective mechanism to collect fees by avoiding having to create a separate utility billing system.  It is likely that this legislation will be heard in the House Ways and Means Committee next week.  ACCG currently opposes this legislation. 

If your county has concerns about this legislation, you are encouraged to contact your state representative so that he or she is aware of this issue as it moves forward.

Counties Need to Review Population Acts
There are numerous population acts on the books in Georgia – one or more of which may be applicable to your county.  Population acts are general laws of local application.  Although they are general laws, they were designed, using population brackets or thresholds, to apply to one or a limited number of counties, cities, school districts, judicial circuits or other local jurisdictions.

Since a population act uses census numbers to determine which jurisdiction or jurisdictions are subject to the act’s provisions, it is critical that county attorneys examine applicable population acts relative to the 2010 census numbers.  Keep in mind that the effect on the county of moving into or out of a particular population category can range from very helpful to very damaging.

In most cases, the effective date for the applicability of the 2010 census to Georgia statutes is July 1, 2012.  Therefore, if your county needs to amend or repeal an existing population act, please contact your legislative delegation as soon as possible to get a proper general bill drafted, introduced and passed during the 2012 legislative session.

For more information on what your county needs to do to review the population acts, click here.