House leaders vow to save homeowners' relief grant program
Gov. Perdue froze $428M in grants due to state's fiscal woes


The Atlanta Journal-Constitution
Published on: 08/05/08

House Republican leaders promised Tuesday to find a way to save the $428 million homeowners' relief grant program.

Gov. Sonny Perdue froze the grants in response to the state's fiscal crisis. But House leaders want to avoid eliminating them because they say that would lead to property tax increases for homeowners.

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"House Republicans are committed to lowering taxes, not raising taxes," said House Speaker Pro-Tem Mark Burkhalter (R-Johns Creek). "Eliminating the homeowner relief grant is analogous to a tax increase, and we're not going to do that."

House Republican leaders met Tuesday to discuss new spending cuts in hopes of saving the property-tax grant program.

Burkhalter's comments came the same day The Atlanta Journal-Constitution reported that Perdue's plan to deal with a potential $1.6 billion state shortfall could force homeowners to pay a few hundred dollars extra in property taxes.

On Friday, Perdue announced a 6 percent cut in spending for most state agencies. Medicaid, the public health care system for the poor and disabled, and k-12 education were slated for smaller cuts.

He also said the state would put a hold on the homeowner grants, which save Georgians on average about $150 to $200 a year in property taxes.

The k-12 education cuts could also bring property tax hikes if local school boards can't make up the difference.

Any move that results in higher property taxes would be politically troublesome for House Republican leaders, who pushed hard for property tax cuts during the last legislative session.

House Speaker Glenn Richardson (R-Hiram) spent much of last year promoting a plan to eliminate all property taxes. His proposal ultimately failed, but Richardson has promised to continue his crusade against property taxes. A proposal to eliminate property taxes on cars also failed.

Richardson sent a memo to House members on Monday telling them "House leadership is currently exploring other options besides the permanent suspension of the (homeowner grants) to offer to the governor and the Senate as an alternative."

That could mean larger spending cuts for state agencies early next year if House leaders can get the Senate to agree.

The governor said through a spokesman that he will consider reviving the grants if the economy improves.

"The governor made this decision (on the grants) because he felt this was the most prudent way to go forward," Perdue's spokesman, Bert Brantley, said.

Jaillene Hunter, spokeswoman for Lt. Gov. Casey Cagle, said, "The lieutenant governor is concerned about all areas potentially affected by the budget gap, including the Homeowners Tax Relief Grant, and it is a process we will continue to work through." Cagle is president of the state Senate.

Democrats may join the effort to save the grants. However, Rep. Rob Teilhet (D-Smyrna) said they have not been included in discussions about the budget shortfall.

"We would like to see the homeowners grant program preserved, but we don't know the extent of the (budget) problem," Teilhet said.

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