Georgia’s General Assembly may only be in session for 40 days each year, but the impact of what’s done — and not done — plays out for a very long time. Now that the 2012 session has ended, it’s fair to ask a simple question: What did our Legislature and governor do to strengthen our state’s economy, grow jobs and keep Georgia a great place to live, work and do business? Unfortunately, not enough. Not nearly enough.
2020 Georgia, a broad coalition of more than 80 statewide nonprofit organizations and community leaders, believes a balanced approach that includes revenues rather than a cuts-only strategy will help build a strong economy and create jobs. The Legislature and governor failed to create new revenue sources, undermining Georgia’s ability to fund vital services that create jobs and build a strong economy.
To be sure, there were some positives. The 2013 budget shows modest growth in revenues and spending on vital services, a welcome reversal from recent years. And the tax bill that passed at session’s end rejected the reckless tax cuts of the last few years for a more balanced approach to meeting Georgia’s fiscal needs. HB 386 also includes some promising revenue policies endorsed in the governor’s Competitiveness Initiative, such as taxing Internet sales and streamlining tax breaks to maximize effectiveness.
While portions of the new tax bill go in the right direction, it is in no way the comprehensive tax reform that Georgia needs. Instead of offering a plan to modernize the tax structure, eliminate ineffective tax breaks and produce sufficient revenue to address the state’s critical priorities, the bill continues with the piecemeal approach of the past. Another major disappointment was the failure of legislators to give lawmakers an important tool for ensuring taxpayer dollars are spent efficiently and responsibly. Legislators seldom review tax breaks to determine if they meet objectives. As a result, Georgia loses revenues for important services like schools, public safety and transportation.
A proposal — House Bill 920 — would have addressed this. But the bill never even reached the floor for a vote.
We also missed the opportunity to raise the tax on cigarettes by at least a dollar per pack. Younger smokers are especially price-sensitive. Youth smoking would likely be diminished significantly by a tax increase that added to the retail price of cigarettes.
In addition, a higher sales tax would generate much- needed state revenue for Georgia — more than $340 million annually — that could be used to fund services vital for a growing economy.
2020 Georgia believes our state deserves a comprehensive approach that includes revenues and creates the environment for jobs and growth. We can do much more to ensure a better future for ourselves and the next generation.
Terry Taylor is co-chairman of 2020 Georgia, a coalition of more than 80 statewide budget watchdog organizations.
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