WEEKLY LEGISLATIVE REPORT – April 6, 2009

Session ends with no transportation funding plan

By Sen. Tim Golden

In the final week of the 2009 session of the Georgia General Assembly, lawmakers approved an $18.6 billion budget for fiscal year 2010 and passed a package of tax cuts designed to spur the economy. But for the second year in a row, the Senate and House leadership failed to agree on a solution for Georgia's transportation funding problem.

The Senate voted two months ago on a transportation funding plan, one of the first actions we took this session, calling for a one-cent sales tax to be voted on, collected and invested on a regional basis. Under SR 44, counties would have been able to join together and levy the special sales tax - if approved by voters in those counties - to address specific transportation needs, if any, at the local level.

The House of Representatives, meanwhile, insisted on a statewide sales tax to finance a pre-determined list of transportation projects in selected areas. Under the House plan, HR 206, all Georgians would have had to pay the tax, even if their local areas would receive no benefit from the additional funding.

The two houses were unable to work out a compromise plan, primarily because the governor, lieutenant governor and House speaker were preoccupied with pushing through separate legislation to give them tighter control over transportation revenues and road-building decisions. The final version of SB 200, which was narrowly approved by both the Senate and House, will authorize the governor to appoint a planning director for the Department of Transportation, who will draw up a list of highways to be built, subject to review by the governor.

The so-called "governance" bill also gives the legislative majority control of up to 20 percent of the state's gas tax money. Because large amounts of the DOT budget is already spent on re-paving and repairing existing roads, this will allow the top Senate and House leaders to determine where new highways are built, as opposed to the DOT board members, who represent all of Georgia's congressional districts.

I voted against HB 200 because it puts too much power in too few hands and dilutes the process of representative government. The governor and top legislative officers were so consumed with gaining more control they failed to provide the leadership needed to solve the real problem of transportation funding this year.

On the session's final day, legislators agreed on fiscal year 2010 budget that includes $1.3 billion in federal stimulus funds and reflects deep spending cuts to address a $3 billion shortfall in state revenues. Lawmakers did add back funds to avoid Gov. Perdue's proposed 10 percent cut in Medicaid reimbursements to hospitals and 6 percent cut in repayments to physicians. The Senate also added $140 million to the budget to take care of an expected financial deficit for Medicaid next year due to rising unemployment in the state.

Legislative budget writers also rejected the governor's plan to eliminate school nurses, adding $30 million back to the budget for that program. Unfortunately, HB 119 fails to include funding for the Homeowner Tax Relief Grants the state provides to local governments. The result will be a $200-$300 property tax increase for the average Georgia homeowner later this year.

The House and Senate also voted for a package of tax cuts and job tax credits for Georgia businesses. HB 481, if signed into law by the governor, would provide a tax credit of $2,400 to businesses when they hire an unemployed worker, suspend the collection of $100 corporate filing fees, cut the capital gains tax by 50 percent and eliminate corporate net worth taxes for businesses. The package is designed to stimulate the state's economy and put more Georgians back to work during this period of record unemployment.

Also receiving final approval was HB 120, which renews Georgia's sales tax holiday periods. If the governor signs the bill, Georgians can shop for school supplies and clothing without paying a sales tax July 30-Aug. 2. The tax-free period for energy-efficient products would be Oct. 1-4. As the original sponsor of the sales tax holiday legislation, I am pleased to see this program continued this year.

Other legislation approved during the final week of the session includes:

SB 117, which I co-sponsored to enhance the "Made in Georgia" program by creating a web site to promote sale of products manufactured in the state.

HR 161, which would provide $500,000 in compensation to John Jerome White, who spent more than 20 years in prison before DNA evidence exonerated him of a 1979 rape conviction.

HB 168, an ethics bill that would require the Department of Revenue to release the names of legislators who have not paid state income taxes.

HB 228, which would reorganize the state Department of Human Resources.

HB 310, which would expand the recycling program in state buildings.

HB 388, which would authorize the adoption of human embryos.

HB 581, which would expand unemployment benefits by accepting federal stimulus funds.

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.