Senate rejects fiscally unsound spending proposal
February 15, 2007 -- Atlanta, GA -- State Sen. Tim Golden (D-Valdosta) A proposed constitutional amendment that would place limits on the state’s ability to produce fiscally sound budgets failed to receive the necessary two-thirds approval from the state Senate this week.

Senate Resolution 20, a so-called “taxpayer protection” measure, would prohibit the General Assembly from increasing the annual state budget by a percentage that is more than the state’s population growth, plus inflation. Any increases in state revenues above that amount would have to be refunded to taxpayers, used to pay off debt or put in the revenue reserve fund.

While that sounds like a plan to provide more fiscal responsibility in the budget process, a similar initiative has already been tried in Colorado, with disastrous results. The Republican governor of that state has been quoted as saying the plan is a failure, and he would not recommend it to other states.

In Georgia, the state government has already reduced funding to local schools and other important programs without a spending cap. This measure would prevent the state from restoring full funding of those programs in the future.

Still another concern with SR 20 is that it would encourage future legislators and governors to always spend the maximum revenue allowed each year, whether needed or not, so that the base could be established as high as possible for the following year’s increase.  This was just a fiscally unsound and unnecessary measure that would jeopardize Georgia’s AAA bond ratings.

This week, the Senate passed legislation I co-sponsored that would authorize local school systems to, at their discretion, hire school administrative managers to conduct the financial and business affairs of a school. SB 72 now goes to the House of Representatives for its consideration.

The Senate Public Safety & Homeland Security Committee favorably reported legislation I co-sponsored that would protect members of the U.S. Armed Forces from unscrupulous marketing practices regarding the sale of insurance coverage. SB 84 now goes to the full Senate for a vote.

Valdosta City Manager Larry Hanson came to the Capitol this week and testified in support of SB 92. As a member of the Senate Finance Committee, I support that legislation, which was favorably reported and now goes to the full Senate. SB 92 would direct the State Revenue Commissioner to collect and maintain sales tax data showing the amount of sales made within a municipality and the unincorporated area of a county.

Addressing the need for an extensive revision of the state’s Certificate of Need (CON) program, I have co-sponsored SB 164. The Department of Community Health issues a CON before any health care facility can be built and deliver certain types of medical services. Before issuing a certificate, the state analyzes the need for medical services as well as the impact on existing health care facilities.

Supporters of the CON law, which are usually hospitals, say it is necessary because it reduces the number of duplicative medical facilities. Opponents, including many physicians, want to be able to operate medical facilities without being required to have a CON. The proposed Certificate of Need Reformation Act aims to resolve this issue, and it is likely to be the source of vigorous debate in the Senate Health & Human Services Committee.

I have also co-sponsored SB 167, which would create State Health Benefit Advisory Committee and provide greater stakeholder oversight to changes in insurance coverage for educators and other state employees and retirees. The committee would be made up of participants in the plan.

The Senate also adopted SR 234, which I introduced, honoring Amanda Kozak of Valdosta, who as the 2006 Miss Georgia and second runner-up in the Miss America pageant has been the source of tremendous pride for our community and the state.

• State Sen. Tim Golden represents the 8th District (Brooks, Cook, Lowndes and Thomas Counties). During the legislative session, he can be reached at 121-A State Capitol, Atlanta, Ga. 30334; by phone at 404-656-7580; or by e-mail at tim.golden@senate.ga.gov.