Gov. Nathan Deal is in better shape financially after more than a year of turmoil, but he had to sacrifice his retirement income to get there.
Jimmy Allen, the governor's accountant and the manager of Deal's blind trust, told The Atlanta Journal-Constitution and The Associated Press on Thursday that Deal's total debt has been reduced by more than $800,000 and stands at about $1.3 million. That figure will fall dramatically in the coming weeks, too, as the governor is expected to sell off a major asset, Allen said.
"It's all very manageable," Allen said.
Thursday's filing confirms what Allen said in January was planned for Deal's finances, a move ethics watchdogs said was an important step.
The governor's financial picture shows quite a turnaround from a year ago, when Deal had to publicly vow to stay out of bankruptcy. In 2009-2010, Deal found himself piled under $2.4 million in debts thanks in large part to a loan he guaranteed for his daughter and son-in-law to open a sporting goods store in Habersham County.
The store, Wilder Outdoors, failed in 2009, costing Deal an additional $2 million in direct investment losses. When Deal's daughter and son-in-law filed for bankruptcy, the outstanding debt transferred to Deal. The now vacant store and the more than 3 acres on which it sits in Habersham County are under contract to be sold, and proceeds from that sale would further lower the governor's debt. The property has been under contract since late last year and had been on the market for $750,000.
The governor's personal residence in Gainesville, including more than 30 acres, is also for sale and was listed at just under $1 million. Allen said Deal has more than $700,000 in equity in the home, and when it sells the profit would also go toward lowering the debt.
Deal was able to dramatically shrink the outstanding balance last year by closing his individual retirement account, or IRA, and 401(k) retirement account, which netted him more than $700,000, Allen said. Deal chief of staff Chris Riley also paid the governor nearly $100,000 to settle an outstanding loan, and tax benefits netted Deal an additional $20,000-plus. But that action wiped out his retirement savings, although Deal now earns a salary of about $140,000 a year as governor and will be eligible as a former member of Congress for a federal pension of about $52,000 a year. He and his wife, Sandra, receive about $48,000 a year in Social Security and other benefits, and Deal will earn a state pension when he leaves office.
Deal's financial changes are reflected in the personal financial disclosure report Deal was to file with the state ethics commission before the Thursday midnight deadline. Allen and Riley briefed reporters on the report earlier Thursday. The report shows Deal's financial picture at the end of 2010, and Allen said there have been negligible changes since Jan. 1.
Deal last year promised to put his assets into a blind trust. Allen was named the trustee. But, Allen said Thursday, only the governor's business interests were put into the trust, not his personal residence and other property, as originally planned.
The governor's assets have not changed, besides the emptying of retirement accounts. Current assets, with 2010 values, include:
- A half interest in 32.77 acres and buildings at 1602 Athens Highway, Gainesville -- valued at $2 million. This is the site of Deal's personal business, Gainesville Salvage and Disposal. It has been placed into the blind trust.
- Residence in Gainesville -- valued at $996,000.
- Home planned for retirement in Demorest, Habersham County -- valued at $975,000.
- Commercial building and 3.2 acres on Charlie Davis Road in Baldwin -- valued at $800,000. This is the site of the former sporting goods store.
- A half interest in 6 undeveloped acres on Athens Highway in Gainesville -- valued at $300,000, also added to the trust.
- A half interest in 37.7 acres in Metter -- valued at $300,000, also added to the trust.
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