Regrettably, Georgia’s lawmakers have failed this year to overhaul the tax system and pass true reform measures. The combined effects of the recession and inadequacies in the tax system caused Georgia’s revenues to fall by 19 percent in two years, and yet lawmakers still cannot find ways to meet the state’s financial needs.
Of course, while our elected leaders must identify and reduce inefficiencies, an approach that relies only on cuts in services and refuses to address tax reform serves neither the interest of business nor the public at large.
There is one rule of thumb on which our leaders can rely: If Georgia provides the resources and infrastructure necessary to help existing businesses thrive, it will attract more business. And more business creates more jobs and more revenues for the state. Georgia cannot afford to just count on the historic appeal of relocating to the South. When decision-makers learn of our aging infrastructure or unprepared workforce, they may still move south — but to Tennessee or Florida instead of Georgia.
My family and I have weathered the recession storms better than most. Yet the pressing reality for Georgia businesspeople and professionals like me is that I can’t answer my own 911 calls to protect my family or pave the highways on my commute or provide private professors to give my children an accredited college education. And I cannot afford to fund a transportation system to get employees to their jobs.
While I supported some fiscal measures that were on the legislative table, such as elimination of the tax on energy for business, I’m concerned that neither the governor nor the House and Senate leaders proposed new revenue streams to meet our needs. Don’t get me wrong: Tax cuts can be great. As a city council member, I stood for eliminating unnecessary government programs and trimming waste, but I also know how important public services are to the health of our state.
Some good ideas on how to accomplish a balanced approach to our state’s financial crisis have been offered by groups like 2020 Georgia, a diverse coalition of organizations and community leaders.
While I may not agree with every recommendation of theirs, I have been impressed with their understanding that innovative approaches to infrastructure and workforce preparedness will strengthen the business community and our state as a whole.
They understand that industry requires both skilled and unskilled labor, and all employers require labor that can do more than just read and write. Over 1.3 million adult Georgians lack a high school diploma or GED, and the number of high school dropouts exceeds the number of GEDs awarded each year.
Cuts to the Technical College System’s adult literacy programs in recent years have resulted in reductions in course offerings for adults seeking to upgrade their skills. Georgia already invests less per student than most states, and literacy centers are at full capacity. More funds — not less — would be needed to add facilities and teachers.
Small business fuels the economy, but even before the recession, businesses were struggling to provide health insurance for their workers.
Cuts to PeachCare and Medicaid will serve only to increase emergency room visits, which will lead to even higher insurance premiums paid by businesses. A cuts-only approach in this case merely perpetuates a vicious cycle that is unsustainable.
There is a balanced approach that will serve us well. Let’s find it and implement it.
Lee Morris is an attorney, CPA and former Atlanta City Council member.
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