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Cagle: Price of property tax break could be state job furloughs
The Atlanta Journal-Constitution
Tim Bryant, the talk show host for WGAU (1340AM) in Athens, had Lt. Gov. Casey Cagle on the air this morning.
In a discussion about the state’s dismal economic situation, Cagle forecast deeper cuts at the University of Georgia — and elsewhere — if state lawmakers are to preserve that $428 million property tax break that Gov. Sonny Perdue has recommended eliminating.
Click here to listen to the entire five-minute interview. But this is the gist:
Cagle: We made a commitment to the homeowners. County commissioners along with city council members have actually sent those bills out. People are expecting to receive those $200 to $300 rebates, or reduction in property taxes. It’s a commitment we’ve made. We need to honor that commitment .Having said that, it’s going to require a $428 million additional cut to the supplemental budget, and that’s going to be very difficult to do, but we’re dealing diligently to get there.
Bryant: The governor says its fiscally impossible to find [that] $428 million.
Cagle: I have great respect for the governor. But I can tell you he and I don’t always see eye to eye, and this is one of those issues that we have a disagreement on. We can cut the budget.
Bryant: Any idea where? The front page story on the [Athens] Banner-Herald today: “Job cuts at the University of Georgia possible in 2010.” Would that be where you find some of the savings?
Cagle: You would certainly be identifying additional furloughs across the board. And that would create significant savings, naturally. Along with that, there [are] the state health benefit reserves that the governor has not accounted for. And there are other pots of one-time money that could be made available.
Photo credit: John Spink/AJC



DEL.ICIO.US


Comments
By Samantha
January 22, 2009 4:35 PM | Link to this
I don’t think that Purdue should cut out homestead exemption. I don’t understand how he can give raises to school teachers and school principals, want to lay off other state employees and furlough them, but yet want to cut out the homestead exemption for homeowners! That’s a bad move on his part! Fair is fair and as a homeowner and tax paying citizen I am totally against it! The citizens of the state of Georgia should be allowed to vote on this issue. This should not be something that he should just automatically be allowed to do.
What about cutting his salary in half? That would be a start.
By Saiful
January 22, 2009 4:50 PM | Link to this
I do agree budget cuts are a necessaries, but the schools and hospital should be spared from that. Schools getting budget cuts or job cuts will affect the students, for example if a school lose some of their workers, then more students will be crowded in a classrooms, and their are some students can not learn well in that environment. These situations can cause a student to not do well and received bad grades for it. This can also cause the school system to lose some more funding because of low GPA. Schools should received more money from the government rather than lose it.
By GaSouthAlum
January 22, 2009 4:55 PM | Link to this
Samantha, if you think teachers are making too much money, you haven’t spent any time in a classroom lately. I guarantee you no one goes into teaching to get rich. And as far as I recall, teachers are not getting raises this year. That being said, you are correct that socking it to homeowners isn’t the best way to go about this. You are penalizing property owners and letting renters and other get off. That’s why a sales-tax boost is the only fair way to generate revenue.
By kelly
January 22, 2009 6:25 PM | Link to this
IN A TIME OF ECONOMIC HARDSHIP WHEN PEOPLE ARE BARELY ABLE TO MAKE THEIR MORTGAGE PAYMENTS TO KEEP THEIR HOUSES AND THE GOV. WANTS TO TAKE AWAY OUR HOMEOWNERS EXEMPTION? THAT IS INSANE!! MORTGAGE PAYMENTS WILL GO UP, MORE PEOPLE WILL LOSE THEIR HOMES B/C THEY CAN’T MAKE THE INCREASED PAYMENTS, MORE FORECLOSURES…. YES, THIS IS A GREAT IDEA! TAX US MORE IN A STAGNANT ECONOMY. WE ARE BARELY HANGING ON AS IT IS. GOOD ONE MR. GOV.!!!!!!!
By Dan
January 22, 2009 8:44 PM | Link to this
The average cost to homeowners will be around $42/month. Would you pay $42 a month to ensure that your child continues to have an education? Georgia’s education system is already at the bottom of the barrel and this cut will only make it worse. People need to stop being so selfish and start thinking about the future. I don’t even have kids and I am not even remotely rich - but I’ll gladly pay the $42 to make sure my neighbor’s children can get a decent education. STOP THINKING ABOUT YOURSELF
By American worker
January 22, 2009 10:27 PM | Link to this
OY VAY! Ummm, maybe if we got rid of the near one million illegal aliens in Georgia we could save a billion or two on education, health care and services going to these illegal parasites?
Maybe Sonny and Casey should check with their bosses before they bring up this “contoversial” topic.
Hello? Chamber of Commerce…
By PAYATTENTION
January 22, 2009 10:30 PM | Link to this
Children are not going to be kicked out of school…stop being stupid. The Gov. seems desperate and that make me wary. It cost us 850 billion the last time the government acted this desperate, and it will cost us this time too. It’s funny that when the government is short on money they don’t cut back until the need is met, they just demand we pay more. No more Sonny boy.
By dottie
January 23, 2009 6:19 AM | Link to this
Teachers did get their raise this year, other state employees did not. It should have been an all or nothing situation - we all got our small raise or we all sacrified it.
We do need a new funding stream. Sales tax would be the fairest - everyone would pay - even those who who do not own property, file income taxes, or have unreported income. Even tourists coming through the states benefiting from the state’s services such as roads, state parks. It is easier to pay a bit more with each purchase than to be slammed with higher property taxes or income taxes.
By Justin Tomczak
January 23, 2009 8:35 AM | Link to this
It is never impossible to cut a budget, it’s politically unpopular, and that’s why it is so rare for elected officials to do so.
With a budget shortfall you either cut spending or raise taxes (or pass the buck and go further into debt if you are the Feds).
This is a political mine field, but one that has to be walked.
By Justin Tomczak
January 23, 2009 8:39 AM | Link to this
It is never impossible to cut a budget, it’s politically unpopular, and that’s why it is so rare for elected officials to do so.
With a budget shortfall you either cut spending or raise taxes (or pass the buck and go further into debt if you are the Feds).
This is a political mine field, but one that has to be walked.
By GoOX
January 23, 2009 8:58 AM | Link to this
Once again Cagle has no solutions. He is looking for one time hits to help solve the problem.
By tinhat
January 23, 2009 11:37 AM | Link to this
The teachers’ salary adjustments were not rescinded as the state employees’ were because they were a contractual obligation. They will be in the same situation as everyone else this year.
By A029
January 23, 2009 11:46 AM | Link to this
Cagle is simply posturing for a run at governor. His answer — layoff people, furlough people — these same people have mortgages and kids in school. Pitting state employees against the property tax rebate is simply wrong. These same state employees will also be giving up the rebate as well. And, yes, adding further insult to injury, continue to take away from Georgia’s education system, which is already at the bottom of the nation. It is embarassing! The long-term consequences are far more damaging in every respect than the short-term benefit of reducing Education’s funding. It is on teh brink obe being a disasrter that woill not recover for decades if much further is taken away. Education has been raped, pillaged and plundered to the tune of billions of dollars by both parties in Georgia [in past years] and never restored as promises were made. The results are obvious—higher poverty, higher crime, educated Georgians leaving the state in drvoes for better paying jobs, a crisis in not enough doctors and nurses, not enough teacher, less business relocating to Georgia due ro a lack of skilled workforce. There is an ole saying that Cagle and other politicians should remember -“Penny wise, pound foolish.” Playing politics in this crisis is simply wrong and the people see right through this. Geoergia’s politicians need some backbone and quit pandering, deflecting, sidestepping…You are not teflon and we will remember. We have had enough! We need people in political office with high ethics, high integrity and courage. Cagle is not demonstrating that he has the right stuff to lead Georgia.
By A029
January 23, 2009 11:50 AM | Link to this
Cagle is simply posturing for a run at governor. His answer — layoff people, furlough people — these same people have mortgages and kids in school. Pitting state employees against the property tax rebate is simply wrong. These same state employees will also be giving up the rebate as well. And, yes, adding further insult to injury, continue to take away from Georgia’s education system, which is already at the bottom of the nation. It is embarassing! The long-term consequences are far more damaging in every respect than the short-term benefit of reducing Education’s funding. It is on teh brink obe being a disasrter that woill not recover for decades if much further is taken away. Education has been raped, pillaged and plundered to the tune of billions of dollars by both parties in Georgia [in past years] and never restored as promises were made. The results are obvious—higher poverty, higher crime, educated Georgians leaving the state in drvoes for better paying jobs, a crisis in not enough doctors and nurses, not enough teacher, less business relocating to Georgia due ro a lack of skilled workforce. There is an ole saying that Cagle and other politicians should remember -“Penny wise, pound foolish.” Playing politics in this crisis is simply wrong and the people see right through this. Geoergia’s politicians need some backbone and quit pandering, deflecting, sidestepping…You are not teflon and we will remember. We have had enough! We need people in political office with high ethics, high integrity and courage. Cagle is not demonstrating that he has the right stuff to lead Georgia.
By MrLiberty
January 23, 2009 12:32 PM | Link to this
Every dollar the government spends is a dollar taken by threat of force from the productive private sector. There are services that we all require (police, fire, ambulance, street lighting, etc. - the list is short). The private sector could easily provide these on a fee for service basis or contract basis, etc. Everything else the state does is because they can take our money and spend as they wish.
People are losing their homes to foreclosure because of both poor decisions and lost jobs. Increasing property taxes is just the government’s way of saying that “our wasteful spending is more important than your needs to take care of your responsiblities.”
If government employees lose their jobs, then maybe the service was not that important in the first place. Would that same job exist if only the private sector were responsible for services? If so, then why not get the government out of the way and let the private sector handle the job. They are far more efficient anyway. But don’t pay with taxes, let them earn it. If the service is not wanted, the market will send the message loud and clear.
The only way to ever find out what the people REALLY want is to let the free market decide. Political connections and favoritism certainly have no more place in our troubled economy.
By Trueliberty
January 25, 2009 2:05 AM | Link to this
People are losing their homes to foreclosure because of lax regulation in the banking sector (began in 1995), which allowed unscrupulous salesmen in the mortgage & bank companies to convince homebuyers that adjustable rate mtgs and interest only and 50 year mtgs were a great investment, as well as lost jobs!
Are there still those who actually BELIEVE that the private sector and the free market (for example: banks, wall street, Enron, etc.) are more efficient? More efficient at money making, perhaps, until they aren’t, then all h_ll breaks loose in the economy. Private companies tried and failed to handle IRS contracts - results? Hundreds of thousands of tax returns lost or stolen, ID theft, etc. To free-marketers, making the profit will ALWAYS come first over anything else, including security issues and the better good of mankind.
By stating that the “only way to ever find out what the people REALLY want is to let the free market decide” you mean the “people” really are big businesses, not the individual.
Just because YOU (Mr. rich guy) can afford to pay a fee for service for police protection and fire and ambulance service doesn’t mean the retiree or disabled or unemployed (or underemployed) person down the street can.
Needless to say, getting rid of the property tax break at this disastrous point in economic history, when people have lost most of their life savings/retirement and/or jobs, might just be one more nail in the coffin for those in jepordy of losing their homes to foreclosures.