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AJC.com > Legislature > Blog > Archives > 2009 > February > 06
Friday, February 6, 2009
Senate leaders look down on stimulus relief
The Atlanta Journal-Constitution
Georgia is facing a steep $2 billion budget deficit, but Senate Republicans say they’re not waiting for a fix from Washington.
Or are they?
The Senate voted today to approve House Resolution 238, which would convene the General Assembly only three days a week until March 25. Senators would return in late June to close the session.
The delay would give them time to make changes to the state budget if revenue numbers continue to fall as they have, Senate Majority Leader Chip Rogers (R-Woodstock) said.
It could also give legislators time to see what kind of stimulus money could trickle down to Georgia.
But both Rogers and Lt. Gov. Casey Cagle said Friday the lengthy legislative delay has nothing to do with waiting for stimulus money.
Rogers referred to the stimulus package as a “bogus loan program” that would be placed “on our children’s backs.”
“We’re not looking to see what the stimulus does,” Rogers said.
“My intent is not to wait,” Cagle said.
“It’s not going to give us an enormous amount of budgeting relief,” Cagle said of the stimulus money.
Larry Pellegrini, a lobbyist for the Georgia Rural Urban Summit and a regular in the halls of the Capitol, said Republican leaders don’t appear to have reached out to their federal brethren for inside information on how much money Georgia could get.
“It just seems like attitude,” Pellegrini said of the snubbing of stimulus money.
“They should be trying to get some clues right now so they can put together a better budget.”
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State tax collections off 14 percent
The Atlanta Journal-Constitution
Senate President Pro-Tem Tommie Williams told lawmakers Friday that state tax collections for January were $262 million below what they were last January.
That would be a 14.2 percent dropoff.
Gov. Sonny Perdue and the Department of Revenue have held off announcing the bad numbers, but legislative leaders were told Thursday. The DOR is expected to formally release the January results later today.
Because of the poor numbers, Perdue is expected to request even more budget cuts from lawmakers. The General Assembly is currently working on budget plans that call for $2 billion in spending cuts.
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UPDATED THROUGHOUT: Senators vote to double homestead exemption
The Atlanta Journal-Constitution
The Senate voted overwhelmingly to double the state’s homestead exemption, although it may cost the state millions of dollars to ratify the change.
The Senate voted 40-14 to increase from $2,000 to $4,000 the amount of property value homeowners can exempt from taxes.
The change would save homeowners about $50 to $75 on their taxes this fall, depending on local tax rates and depending on whether local governments raise the rates to make up for the lost revenue.
In addition, the exemption would increase each year at the rate of inflation.
The proposed exemption increase, which would be on the ballot in a special referendum in June, is aimed at making up in part for the loss of the homeowners’ tax relief grant this fall. However, it could cost millions of dollars to hold the June referendum.
Senate Majority Leader Chip Rogers (R-Woodstock) said the state homestead exemption has not been changed since it was enacted in 1937. At the time, if you owned the average-priced home in Georgia, you were exempt from all property taxes, he said.
If it had been adjusted for inflation, the exemption would be $33,000 today, Rogers added.
Clint Mueller, a lobbyist for the Association County Commissioners of Georgia, said increasing the exemption will cost local governments more than $100 million in lost revenue.
But Rogers said, “We have thousands and thousands of homes being foreclosed upon, and we have the temerity to say, “What about local government?
“What about the taxpayers? They are the ones that sent us here.”
Sen. Steve Thompson (D-Marietta), called it “smoke and mirrors” legislation because local governments will raise property taxes to make up for the lost revenue. Thompson called the measure a “sham.”
The Senate approved on a 29-24 vote Friday for legislation that would essentially guarantee the state won’t fund the homeowners grant — which saves homeowners $200 to $300 a year — this fall. However, the Senate may reconsider the vote Tuesday.
The grants cost the state $428 million, and with the recession killing tax collections, the government doesn’t have the money to fund them in the coming year. The legislation sets up a formula to fund the grants in the future if the state has fairly strong revenue growth. But it’s unlikely the grants will come back until the fall of 2010 or later.
“We understand that state legislators are trying to make up for not being able to fund the HTRG credit this year,” said ACCG Executive Director Jerry Griffin. “But, the savings that they are offering to homeowners will come directly out of local government budgets by increasing the property tax exemption. That shifts the financial burden of a state funded benefit to local governments who are also dealing with declining revenues.”
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House votes to leave in March, return in June
The Atlanta Journal-Constitution
The state House just voted unanimously to split the 40-day legislative session into two parts, which lawmakers hope will give them flexibility to deal with whatever economic stimulus package comes from Washington.
The House voted 165-0 to meet three days a week through March 25 and then return in late June. The General Assembly is constitutionally required to meet for no more than 40 days a year, although those 40 days do not have to run consecutively.
House Majority Leader Jerry Keen (R-St. Simons) said Senate leaders have also agreed to the change, although that body must approve the adjournment resolution before it takes effect.
This, Keen said, allows the Legislature to be “responsive to things that may or may not come down from Washington.”
Congress is debating a $800 billion to $900 billion economic stimulus package, which by some estimates could send $5.6 billion in additional federal dollars to Georgia for education, Medicaid, infrastructure and more.
State lawmakers, meanwhile, are consider an amended budget for the current fiscal year that must find $2 billion in savings, as well as a budget for the year that begins July 1 that seeks even deeper cuts.
Going to a three-day work week — the House and Senate would convene Tuesday, Wednesday and Thursday — slows down the clock and allows budget writers and Congress more time to figure out what money is available.
“All of us see the news and read the newspaper,” Keen said. “We have worked very hard with the Senate to craft a schedule to let you know where we are but at the same time allow us enough flexibility to respond to what may or may not happen in Washington.”
Committees, especially budget-writing panels, would likely continue to meet on Mondays and Fridays, Keen said.
March 25 would represent the 35th day of the session, under the adopted resolution, and returning June 27 would give lawmakers five full days before the beginning of the next fiscal year July 1.
“If we leave and things change, this will allow us to come back in a five-day period,” he said. “It gives us a lot of flexibility and options in terms of what we do.”
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UPDATED THROUGHOUT: Lawmaker rails against university sex experts
The Atlanta Journal-Constitution
Rep. Charlice Byrd (R-Woodstock) took to the floor of the House on Friday to blister state universities who “offer such special-interest classes and expertise on male prostitution, queer theory, oral sex.”
Byrd’s criticism comes days after Rep. Calvin Hill (R-Canton) specifically singled out Georgia State University, which includes in its 2009 media experts guide professors and instructors knowledgeable about those subjects. Hill originally believed GSU offered classes in those subjects, but later realized that was incorrect.
“Yes, ladies and gentlemen, you have heard me right,” Byrd said. “In this present economy, the taxpayers’ dollars are being used by the Board of Regents to inform students about such social topics. The universities in this state are to prepare an opportunity for higher education, not studies on controversial issues.”
Byrd said the state and its taxpayers should have not shoulder the cost of funding these professors’ jobs or their work. That cost, she said, should be paid “by the student who has interest in such courses.”
But a GSU spokeswoman said higher education has broad missions.
“University researchers study everything from cancer to corporate finance for the good of the public,” Andrea Jones said. “Teaching courses in criminal justice, for example, does not mean that our students are being prepared to become criminals. Quite the opposite. Legitimate research and teaching are central to the development of relevant and effective policy. The argument to limit or eliminate certain areas of research and education is flawed.”
After the House adjourned, Byrd was asked who should be the arbiter of what classes or subjects are appropriate to be taught at public colleges and universities.
“Certainly, if legislators are to dole out dollars for funding, we should have a say in these kinds of courses,” Byrd said.
Byrd said she has contacted the Georgia Christian Coalition and the Georgia Baptist Convention to rally support for ridding the system of these kinds of topics.
But Hill said the Board of Regents and the universities themselves do and should control what subjects and issues they teach. Still, he said, “they need to get rid of these frivolous classes” and get back to their core mission of educating students and preparing them for the workforce.
With lawmakers now considering a state budget that must absorb billions of dollars in cuts, “I believe the timing is perfect to eliminate positions, of professors and staff who are paid to provide such services,” Byrd said. “I am sure many of you share my disgust and outrage at how taxpayers’ dollars are being spent by our universities.”
As Byrd left the well of the House, a few lawmakers clapped.
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