Announcements

FY 2011 Budget Info;
 
General Overview:
 
* Over the past two sessions of the General Assembly - a period of about 15 months - the fiscal situation ( and in turn the budget) of the State of Georgia has taken an unprecedented downturn.
 
* Last year, the General Assembly was dealing with the FY 2009 amended budget and FY 2010 general budget and making deep cuts. As difficult as it was a year ago, this year is even worse as even deeper cuts have been made in FY 2010 amended budget and FY 2011 budgets.
 
* When this session ends and the final budgets for FY 2010 amended and FY 2011 are passed and in effect, the state budget will be almost $4 billion less than the original budget passed for FY 2009.
 
* State collections (that comprise most of the state budget) are down approximately $4.5 billion from the original FY 2009 budget - close to $5 billion if funds from the Revenue Shortfall, the new Hospital Provider Payment, and fees are excluded.
 
*The budgets presented this session included very difficult cuts. To downsize state government by $4 billion in less than two years involves cuts to many good programs and to areas we all consider high priority.
 
* Despite claims to the contrary, the state has "NO" large pockets of waste to close a $1 billion deficit, let alone a $4 billion deficit. The cuts must come from and involve some key agencies. The state budget includes 50 separate state agencies/budget entities - each agency consisting of one or more programs. Of the 50 agencies, the 7 largest agencies account for 90% of all state funds budgeted.
 
* During the past 24 months, the Revenue Shortfall Reserve has declined by 94% from $1,617,405,137 to $103,693,796 - the funds may be required to finish the FY 2010 budget. The Reserve once stood at 8.6% of collections. Today, the Reserve is 0.6% of collections.
 
* Despite the economic downturn, Georgia has continued to maintain a AAA bond rating due to financial management and taking appropriate action to manage the budget. As required by the State Constitution, Georgia continues to take the necessary action to ensure a balanced budget.
 
SENIOR INCOME TAX CUT:
 
The "User Fee Bill" was amended to phase in the Senior Income Tax Cut.
a- The Senior Income Tax Cut will result in a projected $142 million tax relief a year when fully phased in after five years.
b- Implements a 5 year phase out of the senior income tax starting in 2012. In 2016, the cap is eliminated, so that for taxpayers 65 and older, all retirement income will be excluded from state income tax.
c- Excludes income for those 65 or older from inclusion in net taxable income subject to Georgia Income tax when fully implemented.
d- Provides a significant economic development incentive for retirees with retirement income to locate in Georgia and contribute to the local communities.
e- Studies indicate that 20% of seniors move to a new state upon retirement. Retirees generate new jobs in local economies by spending money on health-related services, housing, financial services and entertainment.
 
ELIMINATION OF THE STATE QUARTER MILL:
 
a- The elimination of the state quarter mill gets the state out of the property tax business and provides manageable and meaningful tax relief to Georgia taxpayers.
b- Implements a 5 year phase out of the state quarter mill of property tax starting in 2012. For tax years beginning on or after January 1, 2016, there will be no property tax quarter mill levied by the state, cutting taxes by an estimated $94 million per year after it is fully implemented.
 
With the Senior Income Tax Cut & the elimination of the state quarter mill of property tax, Georgia taxpayers will save roughly $236 million a year.
 
There will be more budget information coming. The FY 2011 budget will be the next newsletter. My goal is to keep you informed.

Governor announced that net revenue collections for the month of March 2010 (FY 2010) totaled $998,239,000 compared to $987,986,000 for March 2009 (FY09), an increase of $10,523,000 or 1.0 %. This is the first monthly increase in revenues since November 2008. To put in perspective, if you had a baby born in November 2008, it would be on solid food now.

Some bills that have passed the Georgia House of Representatives that you may be  interested in:

Revenue Bills:

HB 307
This legislation imposes a provider payment fee on a hospital’s net patient revenue for the purpose to obtain additional Medicaid dollars. As a result, hospitals who provide a high level of treatment for Medicaid and PeachCare patients will receive additional revenue.

HB 1023
This bill will help create job opportunities in Georgia. It provides tax incentives for certain companies that hire people who have been receiving unemployment benefits. This bill also includes tax breaks for high risk investors in Georgia high-tech companies and cuts the capital gains tax.

HB 1055
This bill updates numerous fees throughout the Georgia code to ensure that they accurately reflect the cost of providing various government services. Also reference HB 1283 and HB 1284.

HB 1082
This bill will allow local governments to hold a local referendum to exempt the inventory tax placed on finished goods. The City may choose to exempt 20, 40, 60, 80, or 100% of such tax. This will be a major economic development tool for local governments looking to attract new businesses to their community.

HB 1093
This bill encourages county or city governments to cooperate with the Georgia Department of Revenue to root out tax cheats in Georgia.

Also reference HB 1188.

HB 1139
This bill is a way to grant every property owner the ability to appeal their property taxes, even in years that the assessed value does not change.

Public Safety:

HB 938
This bill is a ban on cell phone usage by persons who are under 18 years of age with an instruction permit or Class D license. This bill would also make it illegal for adults to text on wireless communications devices while operating a motor vehicle.

This bill does not address stupidity. Such as individuals reading a book while driving. This I have seen on several occasions on my trips to Atlanta.

Insurance:

HB 1184
This bill allows Georgia citizens to buy health insurance across state lines.

HB 1268
This bill continue to help those Georgians that have lost their jobs, and who haven’t found a new one, to continue their health coverage if they so choose. It extends the time period (an additional 15 months) for continuation coverage (COBRA) under certain group accident and sickness insurance plans. This is done in conjunction with a Federal act whereby a subsidy of 35% of the premium cost will be paid by the federal government.

Water:

HB 1094
This legislation recognizes the need to create a “Culture of Water Conservation” in Georgia in order to ensure proper use of our finite water resources.

Education:

HB 908
This bill gives greater flexibility to local school boards by suspending certain expenditure controls until the year 2013, allowing the school systems to allocate diminishing resources where they believe will most benefit their school needs.

HB 977
This bill states that if a local Board of Education furloughs teachers, paraprofessionals, cafeteria workers, bus drivers, custodians, support staff or other non-administrative positions during a school year, the local Board of Education cannot use state funds to increase the salary of the superintendent or other administrative staff.

SB 84
This bill clarifies and standardizes conflicts of interest policies, codes of ethics, the proper roles of the school board and superintendent, and school board qualifications. It also allows the Governor to remove and replace school board members in order to avoid the loss of accreditation when a school board is on probation by an accrediting agency.

I would encourage you to read each bill that you have an interest in. The above comments only covers the subject of the bill. They can be found on the Georgia General Assembly Website.

As a side note, you can view the House & Senate while we are in session and all committee meetings. The Georgia General website has links for live feeds plus archives of previous sessions.

Here is a snapshot of the budget the Georgia House and Senate will be working on over the next few weeks.

What is the total state 2011 budget?  Starts July 1, 2010 & ends June 30, 2011.

The Georgia General Assembly has discretion over $16 billion in the General budget. This excludes $2 billion in (the bulk of) motor fuel taxes, all lottery funds and the Brain and Spinal Injury Trust Fund, which are dedicated by state constitution to specific appropriations purposes.

What is the shortfall that will need to be addressed in the proposed 2011 Budget?

Projections put it at $1 billion or more. It about equals the Everything Else category listed below.

How is the 2011 General budget allocated?

• 44% $7 billion  K-12
• 14% $2.2 billion  Community Health
• 12% $1.9 billion University System of Georgia
• 8% $1.2 billion Bond payments
• 6% $1 billion Corrections
• 5% $800 million  Behavioral Health
• 3% $500 million Human Services
• 2% $320 million Technical Colleges
• 6% $1.1 billion EVERYTHING ELSE

EVERYTHING ELSE totals just over $1 billion in the budget. It covers 40 agencies and all branches of government, such as Public Safety; Juvenile Justice; Judicial System; Governor's office, Senate & House; Teachers Retirement; Driver Services; Pardon & Paroles; and Revenue Department.

Later in the week, I plan to send you part 2 of the 2011 budget.

Here is more background on the 2011 Budget. It is not comprehensive, but rather gives another perspective to the budget process.

Governor Perdue announced today that net collections for the month of October 2009 (Fiscal year 2010) totaled $1,140,090,000 compared to $1,386,850,000 for October 2008 (Fiscal Year 2009), a decrease of $246,770,000 or 17.8%.
 
In preparation for the upcoming work on the amended 2010 state budget, I thought you would be interested in the parameters we have to deal with.  We will fulfill our budgetary obligations to the state, and we will do it with Georgian’s best interests at the forefront. By LAW, Georgia is REQUIRED TO HAVE A BALANCED BUDGET.
 

General Funds as distinct from Dedicated Funds:

1. General Funds are allocated among 50 agencies and three branches of state government. Dedicated Funds can be appropriated ONLY for designated purposes.
2. General Funds account for 87 percent of the budget; the remainder is restricted.
3. Dedicated Funds are comprised of:  Motor Fuel taxes; Tobacco Settlement; Lottery for Education; and Brain and Spinal Injury Trust Fund.

General Fund Composition:

1. The Department of Education makes up 46%.  Of this portion, 92% is distributed to school systems and schools through the per-student QBE formula. Equalization formula and a small amount for three state deaf and blind schools. The bulk pays for salaries at the school-level. If you add the University System & The Technical System, Education comprises 62% of the state’s budget.
2. 10 agencies comprise 95% of the General Budget:
   1. Education (K-12): 1.6 million students; 160 teachers
   2. Regents: 300,000 students; 35 colleges and universities
   3. Community Health: including Medicaid, PeachCare, state health plan, and County public health departments
   4. Debt Sinking Fund: Bond payments
   5. Corrections: 54,000 inmates; 37 prisons
   6. Behavioral Health: including 7 state-run mental health hospitals, Mental Health, Developmental Disabilities
   7. Human Services: including Child Welfare Services, TANF, Elder Services
   8. Technical College System: 156,000 students; 86 campuses
   9. Juvenile Justice: serves 73,500 minors
   10. Public Safety: 806 state troopers
3. The remaining 40 agencies plus the Judicial and Legislative branches account for 5% of the budget. Our challenge will be to craft an Amended 2010 Budget with reductions greater than the amount of these 40 agencies combined – or 8.3%. The FY 2009 Budget closed out 8.7% smaller than the FY2008 Budget.

Developing a balanced budget when revenues are increasing is difficult enough, but to balance a budget in the current economic times is challenging.

YOUR VOTE COUNTS

If you live in the Georgia House of Representatives House District 129, November 3^rd, 2009 is a very important date in the future of Columbus.

House District 129, recently vacated when State Representative Vance Smith was appointed Commissioner of the Georgia Department of Transportation, will be decided on November 3rd.

You can vote "EARLY" by going to the Board of Elections at the Government Center
"OR"
You can request an absentee ballot (Don't wait too long, there are time restraints)
"OR"
You can vote at one of the following locations on November 3^rd, depending on your voting precinct:

• St. Mark
• Wynnbrook
• Heiferhorn
• Northside

Don't take a chance and miss the opportunity to vote - vote early. 

If you have any questions, call the Board of Elections at 706-653-4392.

Net revenue collections for the month of September, 2009 (FY10) totaled $1,371,956,000 compared to September, 2008(FY09) of $1,632,334,000,  a decrease of $260,378,000 or 16%.

Percentage decrease year-to-date for FY10 compared to FY09 is 14.2%.

ATLANTA – Governor Sonny Perdue today hosted the first meeting of the newly-formed water contingency task force and announced the business, government and environmental leaders from around the state that have agreed to serve on the group.

“I am very appreciative of the time and effort these leaders from across Georgia have committed to the important task at hand,” said Governor Perdue. “I have asked this group to look at any and all possible solutions and let the facts drive their recommendations.”

Today’s first meeting of the task force focused on the history of water litigation and negotiations as well as discussion of the Governor’s four-pronged approach to dealing with Judge Magnuson’s July ruling. One of the strategies includes contingency planning, which is the focus of the task force.

Coca-Cola Enterprises Chairman and CEO John Brock and Tim Lowe of Lowe Engineers are serving as co-chairs of the task force, which will meet throughout the fall and present recommendations before the January 2010 legislative session.

“The Governor has named an outstanding group of leaders to serve on this task force,” Brock said. “We are eager to begin work on the charge the Governor gave us today – to develop a contingency plan that considers both conservation and water supply. This issue will affect Georgia for decades to come.”

“This task force brings together business, conservation and government leaders from throughout our state and it is that equal representation of all interests that will allow us to be successful,” Lowe added. “To a member, this task force is committed to working together to ensure that our state is well-prepared to meet our water needs long into the future.”

More than 80 leaders have agreed to serve on the task force. The members are:

Brock, John, Coca-Cola Enterprises (co-chair)
Lowe, Tim, Lowe Engineers (co-chair)
Amos, Paul, AFLAC
Anderson, Richard, Delta Air Lines
Armstrong, Kerry, Duke Realty
Bannister, Charles, Chair, Gwinnett County Commission
Barella, Jose, Merial
Bennett, John, Chair, Coosa-North Georgia Regional Water Council
Black, Gary, Georgia Agribusiness Council
Blake, Frank, The Home Depot
Blanchard, Billy, Columbus Bank and Trust
Boner, Rex, The Conservation Fund
Cagle, Casey, Lt. Governor
Carruth, Bill, Chair, Georgia Board of Natural Resources
Chase, Donald G., Chair, Upper Flint Regional Water Council
Clark, Chris, Commissioner, GA Department of Natural Resources
Collier, Darin, Worthing SE
Cornelius, Ken, Siemens
Cross, Ron C., Chair, Savannah-Upper Ogeechee Regional Water Council
Currey, Brad, Rock-Tenn Company
Davis, Scott, UPS
Dempsey, Lynn, Dempsey Auction Company
Deriso, Sonny, Atlantic Capital Bank
Dillard, Doug, Dillard & Galloway, LLC
Dunlap, Kit, Chair, Metropolitan North Georgia Water Planning District
Eason, Darvin, Chair, Suwanee-Satilla Regional Water Council
Eaves, John, Chair, Fulton County Commission
Ellis, Burrell, CEO, DeKalb County
Fischer, Christian, Georgia-Pacific
Floyd, Bill, Mayor, City of Decatur
Fox, John, Emory Healthcare
Franklin, Shirley, Mayor, City of Atlanta
Garrard, Gardiner, The Jordan Company
Garrett, Mike, Georgia Power Company
Gellerstedt, Larry, Cousins Properties
Glover, Taylor, Turner Enterprises, Inc.
Green, Steve, Stephen Green Properties, Inc.
Harbin, Ben, Chair, House Appropriations
Harris, Duane, Sea Georgia Adventures
Hatcher, Bob, MidCountry Financial Corp.
Hays, Richard, Alston & Bird
Hill, Stephen, Solvay Pharmaceuticals
Hodge, Al, Greater Rome Chamber of Commerce
Howard, Pierre, Georgia Conservancy
Hughes, Dale, Cox Enterprises
Hyland, Greg, Mueller Water Products
Jackson, Bruce, Arnall Golden Gregory
Johnston, Bob, MEAG Power
Ketchum, Mark, Newell Rubbermaid
Lakly, Shelly, The Nature Conservancy
Lanier, L. Brinson, Chair, Altamaha Regional Water Council
Lesser, Craig, The Pendleton Consulting Group
Maltese, Joe, City of LaGrange
Markwalter, Jack, Invesco
McSpadden, Richard, Chair, Upper Oconee Regional Water Council
Nash, Al, The Columns Group, Inc.
Nuti, Bill, NCR Corporation
Olens, Sam, Chair, Cobb County Commission
Pate, William, Atlanta Convention and Visitors Bureau
Poitevint, Alec, Southeastern Materials, Inc.
Price, Mike, Oglethorpe Power Corporation
Rice, John, GE
Richardson, Elmo A., Chair, Middle Ocmulgee Regional Water Council
Royal, A. Richard, Chair, Lower Flint Regional Water Council
Scheible, Dave, Graphic Packaging
Sheldon, Donna, House Majority Caucus Vice-Chair
Sitherwood, Suzanne, Atlanta Gas Light
Smith, Gary, Strategic Value Properties
Smith, Jack, Chair, Fayette County Commission
Smith, Lynn, Chair, House Natural Resources & Environment
Smith, Rick, Equifax Inc.
Stack, Tim, Piedmont Healthcare
Tankersley, Jan, Bulloch County Commissioner
Tapp, Helen, Trust for Public Land
Tarbutton, Charles, Sandersville Railroad Company
Thomas, Mike, Clayton County Water Authority
Thompson, Benjamin, Chair, Coastal Georgia Regional Water Council
Tolleson, Ross, Chair, Senate Natural Resources & Environment
Tuggle, Clyde, The Coca-Cola Company
Weber, Dan Chair, Senate Education
Wells, John, Interface Americas
Wilheit, Philip, Wilheit Packaging
Williams, Virgil, Williams Group International, Inc.
Willis, Betty, Emory University
Windom, Matt, Chair, Middle Chattahoochee Regional Water Council
Wood, Jenner, SunTrust Bank
Wood, Paul, Georgia EMC

Once again, you will have the opportunity to buy energy-saving and water efficient products without sales taxes during the ‘2009 Energy Star and WaterSense Sales Tax Holiday’. The sales tax holiday begins at 12:01 a.m. Thursday, October 1, and runs through midnight Sunday, October 4.

You will not pay state or local sales taxes on the purchase of Energy Star-qualified or WaterSense-labeled products that cost $1500 or less per item.

ENERGY STAR:  ENERGY STAR designated products meet strict energy efficiency criteria set by the U.S. Environmental Protection Agency and the U.S. Department of Energy. Qualified ENERGY STAR appliances and products eligible for the sales tax exemption include dishwashers, clothes washers, air conditioners, ceiling fans, fluorescent light bulbs, dehumidifiers, programmable thermostats, refrigerators, doors, windows and skylights.

WaterSense: According to the EPA, if just one out of every four households in Georgia retrofits their bathrooms with WaterSense fixtures, it could save nearly 10 billion gallons of water per year. WATERSENSE –labeled products eligible for sales tax exemption include bathroom sink faucets or aerators and high-efficiency toilets.

The Special Subcommittee on Adequate Water Supply scheduled for Tuesday, September 29, 2009 at 2:00 pm at the Iron Works is being POSTPONED.

I will keep you posted when the meetings are rescheduled.

In conjunction with the Speaker of the Georgia House of Representatives,  a SPECIAL Subcommittee on Adequate Water Supply has been formed in response to the July 17 federal court ruling on Lake Lanier. This subcommittee, working with its Senate counterpart, initially will be holding a series of meetings across all corners of the state the week of September 28 – October 1 to examine the diverse nature of this issue.

Given the recent ruling on Lake Lanier, it has heightened the importance of the water supply issue in our state.

MARK YOUR CALENDAR:
Tuesday, September 29, 2009
2:00 P.M.
Columbus Convention & Trade Center (Room 201)
801 Front Avenue
Columbus, Ga 31901