March 9, 2010
The Appropriations Committees of the Senate and House of Representatives just completed two weeks of hearings on the annual state budget for fiscal year 2011, for the purpose of considering more cuts to the $18.2 billion spending plan proposed by Gov. Sonny Perdue.
The governor is forecasting a 4.2 percent growth in revenue for next year, despite the fact that state tax collections have declined for 15 consecutive months and are now down by 12.7 percent through the first eight months of fiscal year 2010. It has been estimated that the amended budget for this year will have to be cut by at least another $200 million, and the 2011 budget is facing an overall shortfall of at least $1.5 billion.
Legislative budget writers are considering drastic actions in order to balance the budget. More personnel cuts will probably be necessary. Department heads are being asked for lists of employees who are fully vested in state pension benefits and could be encouraged to retire early.
The most controversial budget proposal is a recommendation to slash another $300 million from Georgia's public colleges and universities. Having already cut $380 million from the University System budget since 2008, further deep reductions would be painful for college students, faculty and staff and the state's economy.
Under the proposal, Kennesaw State University would stand to lose $14.1 million in funding and 224 staff positions. The number of freshmen and transfer students would be reduced by 10 percent, while the elimination some degree programs would force other students to transfer to another institution. Statewide, a 35 percent student tuition increase is on the table, and elimination of the Georgia 4-H program has been suggested.
These proposals have resulted in a public outcry that is expected to increase as long as these catastrophic cuts to higher education are considered. Our University System has made great strides over the past 20 years in expanding opportunities for students all over the state to get a college education. No one I know wishes to see that progress reversed.
February Revenue Decline: Gov. Perdue announced Monday that net revenue collections for the month of February 2010 (FY 2010) totaled $567,251,000 compared to $629,448,000 for February 2009 (FY09), a decrease of $62,197,000 or 9.9 percent. The percentage decrease year-to-date for FY10 compared to FY09 is 12.7 percent.
Transportation Funding: Legislation proposed by Gov. Perdue, calling for a referendum on a 1 percent sales tax for transportation projects in each of 12 special districts across the state, is under consideration in the House Transportation Committee. While there is support for the regional approach to increased funding for transportation, there is also concern about several provisions in HB 1218. Some lawmakers object to its top-down policy, with the state dictating the makeup of the regions rather than counties voluntarily coming together to form their own regions and having more local control. Also, the governor's bill would not call for the referendum until 2012, meaning Georgia's transportation needs would have to wait an additional two years for a long-overdue funding solution. A Transportation subcommittee has already made several changes to the legislation, whose sponsor said the governor would likely veto any version of the bill that allows counties or regions to opt out of putting the sales tax referendum before the voters. The governor and legislative leaders have failed to agree on transportation funding legislation in the previous two sessions of the General Assembly.
'Zero Tolerance' Reform: The Senate Education & Youth Committee has approved legislation aimed at bringing common sense to Georgia's so-called "zero tolerance" school disciplinary laws, which were intended to crack down on serious charges of having weapons in school but have too often resulted in students being criminalized for minor and insignificant infractions. SB 299 would prevent the immediate jailing of a student without a hearing and give judges more discretion into how they handle cases. The legislation, along with SB 332, which would require schools to include on their annual discipline reports the number of zero tolerance cases, will now be considered by the full Senate.
Property Tax Revisions: The Senate Finance Committee has approved SB 346, which would revise and streamline the procedures for appealing property tax valuations. This measure would standardize the process by which property owners can appeal the value assigned by tax assessors to their property and would require counties to mail valuation notices to property owners every year, along with information on how they can file an appeal. SB 346 now awaits a vote on the Senate floor.
District 6
P.O. Box 1781
Smyrna, GA 30081
Phone: 770.436.0699
Fax: 770.436.0699
Email: doug.stoner@senate.ga.gov
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