Perdue: $1.2 billion needed to create jobs

Gov. Sonny Perdue asked state lawmakers Tuesday to approve $1.2 billion in construction borrowing to create 20,000 new jobs and build schools, university facilities and libraries.

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However, his budget plan also calls for no pay raises for 200,000 state employees and teachers next year. And it eliminates the $428 million homeowners property tax grants, which could lead to a property tax increase for Georgians this year.

Perdue released limited details of his spending plan for the rest of this year and fiscal 2010, which begins July 1, during a 40-minute state-of-the-state address to lawmakers.

The governor said some state agencies would face cuts of more than 10 percent.

Still, he told lawmakers he was confident Georgia would get through the recession and prosper.

“We will emerge from these challenging times stronger,” the governor said. “This is a pivotal moment in our nation’s history.”

The mid-year budget, which runs through June 30, would drop from more than $21 billion to $19.2 billion. The budget for fiscal 2010 will be $20.2 billion.

Perdue’s budget plan is a recommendation, although he alone sets the total amount that can be spent. Lawmakers will now being working on their versions of the budget.

Perdue wants to soften the potential spending cuts, somewhat, by using $50 million in reserves this year and $408 million next year. To avoid massive budget cuts in public health care, Perdue said he wants a fee on hospitals and health insurance plans to fill holes in the Medicaid He told lawmakers that coming up with a final budget will be tough.

“Political mantras aside, cutting more than 10 percent from a budget cannot be achieved by simply cutting waste,” Perdue said. “While we have worked for six years to do more with less, at some point, in business or in government, it becomes less with less.”

During the speech, the governor touted his “stimulus plan” that includes $1.2 billion, mostly for new construction projects. Georgia is one of few states with a AAA bond rating, the best available, so it should be able to get good lending rates.

“In times that we have trimmed our budget in other areas, we are aggressively increasing our bond package by a full 20 percent over last year,” he said during his address. “This will take advantage of low construction costs and create an estimated 20,000 new jobs in an industry that is ready to go to work.”

One thing Perdue didn’t cut was local assistance grants, known as pork at the Capitol because they are doled out by legislators. Lawmakers allocated $6 million for those projects, which include everything from new band uniforms to park improvements. Perdue didn’t eliminate them.

House and Senate leaders have delayed releasing the money until they can review the projects.

Proposed construction projects:

• $318 million for K-12 schools

• $1 million equipment for the Alpharetta Academic Facility affiliated with Georgia State University/George Perimeter College

• $3.7 million for equipment for the Engineering Technology Center at Southern Polytechnic State University in Marietta

• $5.97 million to design, construct and equip a new central utility plant at the University of Georgia

• $2 million for infrastructure and utility improvements at Georgia Gwinnett College

• $43 million for construction of an Undergraduate Learning Commons at Georgia Tech

• $31.2 million for construction of an academic facility at Gainesville State College

• $17.8 million for laboratory addition to the science building Kennesaw State.

• $26.6 million for a special collections library at UGA

• $2.1 million for design of a new science building at Clayton State University

• $2.2 million for design of an academic building at Georgia Perimeter College Dunwoody campus

• $70 million for major repairs and renovations on college campuses statewide

• $2 million for the DeKalb County Central Library and Processing Center.

• $1 million for renovation of the R.T. Jones Memorial Library in Canton

• $2 million for the Forest Park branch library.

• $2 million to design and build the Northeast Regional Library in unincorporated Cherokee County.

• $8.5 million to design and build a classroom building for Griffin Technical College in McDonough

• $14 million to design and construct Don Carter State Park in Gainesville

• $52 million for improvements around the state Capitol