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AJC.com > Legislature > Blog > Archives > 2009 > February > 17 > Entry

Perdue changes tune on homeowner relief grants

Gov. Sonny Perdue reversed course and will fund legislation that will avoid homeowners getting a supplemental $200-$300 tax bill later this year.

However, he also told reporters Tuesday that the continued recession is forcing him to lower the amount of money the state will be able to spend this year by $450 million, forcing a new round of budget cuts.

Perdue was joined by Lt. Gov. Casey Cagle and House Speaker Glenn Richardson (R-Hiram) when he announced backing for the $428 million needed to pay for the homeowners’ relief grants that were handed out last fall.

Perdue opposes the grant program started by his predecessor Roy Barnes a decade ago. But the influx of billions of dollars expected from the federal stimulus package helped convince him to fund the $200 to $300 grants homeowners received on their tax bills last fall.

County officials have said if the $428 million wasn’t made available, they would have to send out supplemental bills asking for the grant money back.

However, the news on the budget front wasn’t all good. Despite the expected stimulus package, lawmakers will have to cut even more spending.

Lawmakers already face the prospect of slashing $2 billion from this year’s budget. Many state agencies are having to cut spending 10 percent and furlough employees without pay.

They expected further cuts in the revenue estimate - what Perdue expects state government to take in this year - after January tax collections dropped 14 percent, or $262 million.

Permalink | Comments (2) | Post your comment | Categories: Taxes

Comments

By SueB

February 17, 2009 2:27 PM | Link to this

Someone should ask the state employee who’s had his pay cut due to furloughs or has lost his job if he’d rather have his job or $200-300 in homeowner’s tax relief. This is insane. $200-$300 does not make or break a person financially, but loss of a job certainly will. And all of Georgia is going to be feeling the brunt of cuts in needed services. Sometimes you don’t know what you’ve lost until it’s gone.

By tnpl4ever

February 17, 2009 3:21 PM | Link to this

It is wrong on all levels to ask state employees to bail out Georgia. State employees have not received a raise going on two years(except teachers) and health insurance went up 7-9% this last enrollment. Has anyone thought about a fair tax? All citizens of Ga. should contribute. This includes those that own homes, and those that don’t. It should include those that work and those that don’t. It is about time that the ones who have been receiving state benefits be asked to contribute back to some degree. There has to be a better solution to this problem, than asking state employees to give up more than they already have.

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