FINAL LEGISLATIVE REPORT – April 13, 2009

2009 legislative session: what passed, what failed

By Sen. Tim Golden

The 2009 session of the Georgia General Assembly took place during one of the most challenging economic periods in our state's history. Lawmakers' hands were tied in many ways by a $3 billion shortfall in state revenues. But a tough economy is no excuse for failing to align public policy decisions with meeting the basic needs of our citizens.

Too often during the recent session, as has been the case for the past seven years, the leaders of the legislative majority had their priorities out of order. As a result, Georgia homeowners will be hit with a $200- $300 local property tax increase later this year. No progress was made on improving the state's transportation system. Georgia still has no reliable, dedicated source of trauma care funding. Our public schools continue to suffer from Quality Basic Education funding cuts.

Every legislative session has its pluses and minuses. Here is a review of this year's action in some of the major policy areas:

Budget: HB 119 proposes a 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.

Taxes: 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. SB 55 requires tax assessors to consider the impact on property values of home foreclosures and bank sales of comparable real estate, along with the decrease in property values caused by conservation easements. HB 233 would freeze property valuation reassessments for two years, forcing local governments to decide between raising millage rates and cutting vital services. HB 482 eliminates the state's inventory tax on businesses.

Transportation: SB 200 creates a new position of Director of Planning at the Department of Transportation, who is appointed by the governor. They are charged with developing a long term plan for the DOT which is submitted to the governor and General Assembly for approval. But DOT board members and rank-and-file Senators and House members, who have a say in what projects are funded now, would have their voices limited under the bill.

Business/Economy: HB 120 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. SB 117 enhances the "Made in Georgia" program by creating a web site to promote the sale of products manufactured in the state. HB 481 provides a tax credit of $2,400 to businesses when they hire an unemployed worker.

Education: HB 157 makes it easier for college students to continue using HOPE Scholarship funds for book purchases and related fees by modifying the "trigger" mechanism that currently requires the state to cut back on using lottery revenues for HOPE funding to reimburse college students for textbook purchases. HB 251 allows students to transfer from one school to another within a school district, provided there is room to transfer. SB 90, which called for universal vouchers for public school students to transfer to private schools, did not pass.

Health care: The bad news is that SR 277, which would have funded trauma care through a $10 annual fee on motor vehicle registrations, passed the Senate but not the House. The good news is that SB 169, which would have criminalized embryonic stem cell research in Georgia, met the same result.

Consumer issues: SB 31 allows Georgia Power to raise its customers' rates to finance the construction of two nuclear reactors at Plant Vogtle, six years ahead of when they are scheduled to be up and running. SB 80 strengthens food inspection regulations and requires immediate reporting of any tests that show contamination. The proposal is aimed at preventing future situations like the shipping of salmonella-tainted peanut butter products from the Peanut Corp. of America plant in Early County.

Law and order: SB 13 allows a "life without parole" sentence in murder cases when the prosecutor does not seek the death penalty. HB 160 adds a $200 fine against "super speeders," motorists who are convicted of driving more than 85 mph on a four-lane highway or more than 75 on a two-lane road.

The General Assembly's work might not be done for 2009. Figures released shortly after the session adjourned showed another 14.5 percent loss in revenue for the month of March as compared to the previous year, adding $167 million to the budget deficit. If this trend continues, lawmakers could be called back for a special session later in the year to rewrite the budget.

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.