WEEKLY LEGISLATIVE REPORT – March 6, 2009

Bipartisan legislation calls for review of tax exemptions

By Sen. Tim Golden

The state Senate voted unanimously Thursday to approve legislation I co-sponsored, calling for regular reviews of the effectiveness of various tax exemption laws that are on the books in Georgia.

SB 206 is a bipartisan proposal aimed at implementing transparency in the state's practice of authorizing certain state tax exemptions. If approved by the House of Representatives and signed into law by the governor, this legislation would require a regular accounting of the tax breaks' impact on state revenues and whether they are achieving the results promised when they were enacted.

As the Senate's major supporter and sponsor of many of these tax breaks for Georgia businesses, especially those aimed at creating and saving jobs in our state, I welcome such a review. Especially during these difficult economic times, everything that impacts the state budget must be on the table for scrutiny as to whether it is having a positive or negative impact for Georgia taxpayers.

By a slim majority Thursday, the Senate approved legislation that would reorganize the state's transportation agencies and likely weaken rural Georgia's voice in the process. SB 200, proposed by Gov. Perdue, would shift control and oversight over Georgia's highway system from the state Department of Transportation (DOT) board to a newly created, 11-member State Transportation Authority (STA). While DOT board members are elected by legislators within each of Georgia's 13 congressional districts, the STA members would be hand-picked by the governor, lieutenant governor and speaker of the House of Representatives.

Passed by a vote of 30-25, only one vote more than the minimum needed, SB 200 now goes to the House for its consideration.

Also Thursday, the Senate voted to approve an $18.9 billion amended budget for the remainder of fiscal year 2009, which ends June 30. Although lawmakers have had to cut approximately $2.3 billion from the budget originally approved last year, the infusion of federal economic recovery funds helped my fellow Appropriations Committee members close the gap in this supplemental plan.

The Senate version of HB 118 includes the recommendation that $145 million in federal stimulus funds be used to restore funding cuts to local school districts. Differences between the Senate and House versions of the supplemental budget will be worked out by a conference committee.

Meanwhile, work continues on the annual budget for FY 2010. This week, the governor lowered his revenue estimate for that budget to $18.57 billion, an 8 percent cut. After some original hesitation, the governor announced he has decided to accept federal stimulus money for the state's unemployment trust fund - which will mean another $150 million to help pay jobless benefits for Georgians who have been laid off. The governor also said he has abandoned his effort to impose a 1.6 percent provider tax on hospitals and health insurers, because of opposition from lawmakers.

On Wednesday, the Senate unanimously approved legislation I co-sponsored that would direct the Department of Economic Development to create and maintain a web site informing the public of Georgia manufacturers and the goods they produce.

Under SB 117, all governmental entities that maintain web sites would cooperate with the department to include a link to the "Made in Georgia" site. Also, companies would be required to manufacture a minimum of 50 percent of their products in Georgia in order to qualify to participate in the campaign.

Having authored the original "Made in Georgia" legislation last year, I am pleased to support this effort to expand public education about the products manufactured in our state, as well as the number of jobs they represent. SB 117 now goes to the House for its consideration.

The Senate Finance Committee voted this week in favor of legislation to continue the annual sales tax holiday periods for school supplies and energy- efficient products. As the original author of Georgia's sales tax holiday legislation, I am very supportive of HB 120, which has already passed the House and now moves to the full Senate for a vote.

Under HB 120, the scheduled dates for the back-to- school sales tax holiday are July 30 through Aug. 2, when clothing and footwear under $100, computers and accessories under $1,500 and other school supplies under $20 are exempt from sales tax. For energy and water efficient products under $1,500, the scheduled sales tax holiday period is Oct. 1-4.

Sen. Tim Golden represents District 8 (Brooks, Cook, Lowndes and Thomas counties) in the Georgia State Senate. During the legislative session, contact him at 121-A State Capitol, Atlanta, Ga. 30334; by phone at 404-656-7580 or by e-mail at tim.golden@senate.ga.gov.