January 30, 2010
On Thursday, the Senate Transportation Committee favorably reported legislation I introduced that would establish the Georgia Coordinating Council for Rural and Human Services Transportation.
According to SB 22, the purpose of the council is to encourage efficient transportation service delivery in the rural areas of the state and to coordinate human service transportation services in both the rural and urban areas of the state.
The council will serve to improve coordination between agencies so that during these extremely tight budget conditions we are able to leverage federal transportation dollars to provide the most efficient service for our seniors and the medically and physically disabled. We want to give them the necessary mobility and independence when traveling to and from medical appointments or the senior center in the most efficient way possible. The legislation has strong bipartisan support, and I am confident it will be approved by the full Senate.
Health Insurance Reform: The issue of healthcare reform has been at the top of the political agenda at the federal level for most of the past year. This week, legislation was introduced in the Georgia Senate that would provide consumers with some health insurance protections at the state level. SB 330 would prohibit insurers from imposing a cap on the amount of lifetime benefits a policy holder can receive and would prohibit insurers from canceling a policy because of a misstatement or omission by the policy holder in the original application, unless the misstatement directly relates to the illness that produced the claim. SB 331 would enable parents to keep their dependents on their health insurance plan up to age 25, even if the dependents are not full-time students, and would make it easier for small businesses to offer group health insurance to employees by allowing them to pool their resources with other businesses to lower the cost of coverage.
Former Senators Return: Three of our states newest high-profile elected officials are former members of the Georgia Senate, including Secretary of State Brian Kemp, Atlanta Mayor Kasim Reed and Speaker of the House David Ralston. They were among a large number of former Senators who returned to their old "stomping grounds" this week and were recognized in a brief ceremony. Speaker Ralston reminded us that Georgians want both sides of the legislature "to be respectful, to be civil, to sit down and reason together on the best solution to the problems facing us right now."
Legislators Furloughed: Due to the state's budget crisis, our public school educators and other state employees have had to take unpaid furlough days as a cost-saving measure. On Tuesday, a plan was announced for members of the General Assembly to take additional furlough days, which would save the state an estimated $2.7 million. I support this plan because as elected officials we must lead by example. We are not and should not be excused from giving up part of our legislative salaries to help in the very difficult task of balancing this year's budget. By the end of fiscal year 2010, lawmakers will have taken 11 unpaid furlough days, including one day a month from August through December last year. Other state agencies have each taken between three and 12 furlough days.
Hands-free Devices OK: In the first legislative action of the session, the Senate voted unanimously to clarify the law regarding the use of hands-free communications devices while driving. SB 306 would allow drivers to use Bluetooth-type devices while talking on their cell phones. The legislation now goes to the House for its consideration.
Racial Profiling Ban: I have co-sponsored SB 325, which would address the issue of racial profiling by requiring law enforcement officers to record the age, gender, race and ethnicity of every motorist they pull over. That data would be analyzed later to detect trends on whether racial profiling is occurring. The bill also provides for annual officer training. Sixteen other states currently prevent racial profiling of motorists and pedestrians.
Governor releases budget plan; more cuts ahead
January 25, 2010
A series of Appropriations Committee hearings Jan. 19-21 began the legislative process for amending the state budget for the remainder of fiscal year 2010, which ends June 30, and the budget for fiscal year 2011, which begins July 1.
Gov. Sonny Perdue released his budget recommendations, which propose reducing the current year's budget from $18.6 billion to $17.4 billion to reflect severe declines in state revenue collections. With state services already cut to the bone, these new reductions average 8 percent among state agencies, including another $299 million slashed from public school funding (bringing the total school cuts for this year to $710 million and the total under Gov. Perdue to $2.3 billion) and three additional furlough days for educators and other state employees.
More education cuts will have a devastating effect on many school systems that are "teetering on the edge" financially, according to State School Superintendent Kathy Cox. She warned that some systems are already in the red, leaving local school boards with no choice but to expand class sizes up to 40 students or increase local property taxes, or both.
The governor is also reintroducing his plan for a 1.6 percent tax increase on hospitals and other health care providers to partially make up for an estimated $506 million deficit in the Medicaid program. Lawmakers rejected the governor's so-called "sick tax" last year out of concern the extra costs would be passed on to patients' health care bills and/or force some already-struggling rural hospitals to close their doors.
Under the plan, hospitals would be taxed 1.6 percent on their net revenues, whether they receive Medicaid reimbursement or not. The facilities handling the largest volumes of Medicaid patients would come out ahead financially, but the vast majority of hospitals would lose money, according to an analysis by the state's Office of Planning and Budget. For example, WellStar Windy Hill Hospital stands to lose $791,553 under the tax plan, according to the study.
The changes to the FY 2010 budget are based on the governor's forecast that state revenues, which have been on a steep decline for more than a year, will be essentially flat over the next six months. Another dip in the economy, he said, will necessitate even further cuts in state spending.
For the FY 2011 budget, the governor is forecasting a 4.2 percent increase in state revenues and proposing $901 million in additional state debt to pay for construction and other capital outlay projects. I am among the legislators and economic observers who are concerned that growth rate is unrealistically optimistic, with the state not expected to reach 2007 revenue levels again until 2014. If we instead planned on flat growth, it might prevent so many cuts and the need for deep budget adjustments next year.
Lost Revenue: Also during the budget hearings, state Revenue Commissioner Bart Graham admitted as much as 5 to 10 percent of sales tax proceeds is going uncollected. Just 5 percent of the sales tax revenue would amount to $250 million, which would be more than is needed to offset the need for three additional teacher furlough days between now and the end of the fiscal year. I have been raising the alarm on this problem, and we as legislators need to work to find a solution during this session to improve the collection of sales tax revenue.
Jobless Rate Increases: Statewide, the unemployment rate jumped to 10.3 percent in December, matching the record high jobless level registered last July. The percentage of Georgians without jobs was significantly higher than the 7.5 percent recorded in December 2008, with the number of payroll jobs down by about 175,000.
Texting While Driving: With the General Assembly scheduled to reconvene Jan. 25, the public safety issue of texting while driving is expected to move onto the legislative agenda. Two proposals have been introduced which would make it illegal to send or read text messages on a cell phone while driving, with fines for the offense running as high as $300. Nineteen other states have outlawed texting while driving.
Regional sales tax likely approach for transportation funding
January 16, 2010
For the past two years, the Senate and House of Representatives have failed to agree on legislation that would provide a sufficient funding source for badly needed transportation upgrades across the state.
Lt. Gov. Casey Cagle and House leaders said this week they have abandoned plans for a constitutional amendment for a statewide sales tax for transportation, which the House passed last year.
The Senate's proposed solution, which I co-sponsored, is a regional sales tax plan under which counties could band together to fund transportation improvements, if the voters in those counties approved the tax by referendum.
Gov. Sonny Perdue, meanwhile, said he would set aside $300 million in bond funds to pay for major transportation projects. He also said he wants to see a series of regional sales taxes for road projects placed on the ballot in 2012 instead of this November.
Budget Hearings: The General Assembly will be in official recess the week of Jan. 18-22, first for observance of the Martin Luther King Jr. Holiday and then for Appropriations Committee hearings to begin the process of drafting the budgets for the remainder of the current fiscal year as well as fiscal year 2011. The governor is scheduled to make his budget recommendations to committee members Jan. 19. He will reportedly call for three more furlough days for educators and other state workers between now and June 30, the end of fiscal year 2010, as part of a $1.2 billion overall budget cut. The governor's recommended FY 2011 budget totals $18.2 billion, which projects an increase in state tax revenues of 4.2 percent. Senate budget writers will receive recommendations for short and long-term budget solutions from members of a "task force" appointed by Lt. Gov. Cagle. Comprised of corporate executives from companies including Georgia Power, Atlanta Gas Light and Blue Cross Blue Shield, the committee with work with the Senate Budget Office and provide advice to Appropriations Committee members, the lieutenant governor said. State agencies, including our public schools, law enforcement and other vital service providers, have had their budgets cut to the bone over the past 18 months due to shortfalls in revenue. The state's Medicaid shortfall for FY 2011 alone is estimated at $635 million. This year's budget planning will also have to account for a lack of more than $1 billion in federal stimulus funding which enabled us to balance the budget last year.
State of the State: Governor Perdue's final "State of the State" address to a joint session of the House and Senate on Jan. 13 was long on historical quotations, nostalgia and sentimentality but, unfortunately, completely devoid of any plans for dealing with some of Georgia's biggest problems. I am disappointed the governor chose not to address the state's record-high unemployment, a lack of adequate funding for transportation, teacher furloughs or any of the issues currently plaguing the state. In the Democratic response, Georgia Labor Commissioner Michael Thurmond urged Republican lawmakers to join with Democrats to develop a comprehensive economic recovery plan that would provide jobs for unemployed Georgians.
Health Insurance Reform: Some Senators are sponsoring a proposed constitutional amendment they claim would exempt Georgians from any federal health care reform legislation that requires citizens to obtain health insurance coverage. Also, Gov. Perdue has proposed legislation that would allow consumers to buy health insurance plans marketed by insurers in other states.
Gun Law Expansion: A Senate proposal would make it legal to carry guns in a wider variety of public places, including sporting events, political rallies, bars, K-12 schools, college campuses (except in dormitories) and non-secured portions of airports. The bill would also allow convicted criminals and mental patients to obtain a permit to carry a concealed weapon after certain time periods.
Water Issues: The governor reported "a renewed spirit of cooperation" among Georgia, Florida and Alabama in the three states' ongoing water rights dispute. There has been a greater sense of urgency for Georgia since a federal judge's ruling last July restricting metro Atlanta's rights to use Lake Lanier as its main source of drinking water. Gov. Perdue said he is willing to call a special legislative session later in the year if an agreement cannot be reached during the regular session.
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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