February 26, 2010
During the first week of Senate and House Appropriations Committee hearings on the fiscal year 2011 budget, it was reported that the University System of Georgia has already cut $360 million from its budget since July 1, 2008.
Legislative budget writers are asking for an additional $200 million to $300 million reduction for higher education in next years budget. The alternative would be steep tuition increases for Georgias college students, possibly as much as 77 percent, to deal with the budget crisis.
State department heads met with the committee members for discussions on more cuts to the $18.2 billion spending plan proposed by Gov. Perdue, who is forecasting a 4.2 percent growth in revenue for next year, despite the fact that state tax collections have fallen 14 months in a row and are down by 13 percent so far in fiscal year 2010.
Georgia Budget & Policy Institute Director Alan Essig contends that the decline in revenues is so steep that the current year's budget, already cut by $1.2 billion, will have to be reduced by another $210 million. He said lawmakers will have to transfer federal stimulus funds budgeted in FY 2011 into the 2010 budget to make up for that shortfall between now and the end of the current fiscal year, which is June 30. According to Essig, that transfer will set the stage for a $1 billion shortfall in the 2011 budget.
Legislative budget writers have indicated they are considering more personnel cuts. Department heads are being asked for lists of employees who are fully vested in state pension benefits, with the thinking being they could be encouraged to retire early.The budget meetings will continue for another week before the full legislature reconvenes on Monday, March 8.
Legislative Update: Two legislative measures I co-sponsored have moved forward in the committee process. SB 305, which would increase the percentage of transportation projects using the design-build method, cleared the House Transportation Committee and awaits final approval by the House of Representatives. SB 336, which would recognize the Georgia Boxing Association as a governing body for amateur boxing, wrestling and martial arts, was approved by the Senate Governmental Operations Committee and moves to the Senate floor for consideration.
Senate approves supplemental budget for FY 2010
February 19, 2010
The Georgia Senate voted Thursday to approve a $17.4 billion amended state budget for the remainder of fiscal year 2010, which ends June 30. The revised budget is reduced by $1.2 billion from the original budget for this year and reflects a 23 percent decline in state revenues over the past two years.
The Senate version of HB 947 rejects an attempt by Gov. Sonny Perdue to take $33 million in lottery revenues out of the HOPE Scholarship program to pay for other scholarships currently funded by general revenues and restores $17.4 million in state equalization grants to low-wealth school districts, which the governor had proposed to eliminate.
The Senate also added $1.8 million to the Department of Revenue budget for the hiring of more employees to process income tax returns and avoid repeating last year's severe delays in refunds to taxpayers and delays until next year the payment of $14 million to private "disproportionate share" hospitals to compensate them for medical treatment of indigent patients.
Unfortunately, HB 947 cuts another $281 million in Quality Basic Education funding to local school systems, bringing the total school cuts under the Perdue administration to almost $2.5 billion. These cuts short-change our public school students and force property owners to make up the difference in higher local school taxes. The budget also forces teachers and other state employees to take three additional unpaid furlough days between now and June 30.
HB 947 now goes to a conference committee to resolve differences in the Senate and House of Representatives versions of the budget.
Long Adjournment: Immediately after adopting the 2010 supplemental budget, the Senate voted 35-17 to take an 18-day recess for the stated purpose of allowing Appropriations Committee members to give undivided attention to the fiscal year 2011 budget. Continued declines in revenues have lawmakers genuinely concerned over Gov. Perdue's rosy forecast of a 4.2 percent budget increase for next year. I voted against the adjournment resolution because, in addition to the budget, the state has major problems to be addressed. The legislature should remain in session and work overtime on a daily basis, if necessary, to do the people's business. But a majority went along with the proposal, and the full Senate and House are now in official recess until March 8.
Economic Development: Legislation that would create an economic development council of state lawmakers to evaluate all state-funded activities that support Georgia's economic development strategy received unanimous approval in the Senate. SB 374 would establish a council of Senators and House members for the purpose of reviewing current goals, tax exemptions and credits, as well as activities and expenditures of the Department of Economic Development. The bill is now under consideration in the House.
Kidney Patients: The Senate voted unanimously to approve legislation that would allow persons who are under age 65 but eligible for Medicare because of disability or end-stage kidney disease to purchase Medicare supplemental health insurance. SB 316 is primarily intended to help kidney patients pay expenses for dialysis treatments. It would also save the state $20 million over five years. SB 316 now goes to the House for its consideration.
Governor embraces Stoner plan for MARTA funding
February 12, 2010
This week, Governor Perdue finally announced his support for giving MARTA some much-needed flexibility by authorizing the transit agency to use more than 50 percent of its sales tax revenues to pay for operating expenses, a crucial action for the future of the system.
I first proposed two years ago suspending the requirement that MARTA spend only half of its sales tax revenues on operations, with the other half for capital construction projects. My legislation passed the Senate but did not make it through the House of Representatives because of the failure of the governor and leaders in the legislative majority to agree on an array of transportation funding proposals.
The increased revenues for daily operations would help MARTA avoid having to make deep cuts in routes and services or impose steep fare increases.
Help for Veterans: This week, legislation that would provide much-needed assistance to U.S. military veterans who want to attend one of Georgia's public colleges or universities was introduced. SB 405 would allow veterans who have enrolled but have not received their G.I. Bill money to attend classes until that assistance arrives from the Veterans Administration. A separate measure, SB 404, would excuse veterans from taking certain classes that they may have taken in the military. Both bills were referred to the Senate Higher Education Committee for its consideration.
Real Estate Loans: The Senate voted unanimously to give final approval to HB 926, which would make it easier for business owners to renew real estate loans with their local bank. State-chartered banks are currently barred from renewing loans to borrowers who owe an amount equal to at least 15 percent of a bank's available funds. This measure would eliminate that restriction, allowing these companies to stay in business. The governor signed the bill into law on Thursday.
Revenues Fall Again: For the 14th consecutive month, state revenues declined in January. The 8.7 percent drop from the same month a year ago brings the total revenue shortfall for the first seven months of fiscal year 2010 to $1.28 billion, a decline of 12.9 percent from the previous year. Income tax collections were off 16 percent in January, while sales tax collections were down 5.5 percent. Corporate income tax collections actually experienced a huge 634 percent gain, but that is the smallest portion of revenue and was not enough to offset the other losses.
Communications Deregulation: The Senate approved an amended version of legislation that would remove most remaining regulations on the telecommunications industry in Georgia. HB 168 would lower access charges, which are still fixed at 1995 rates, to current market rates. The measure goes back to the House of Representatives for final consideration.
Paperwork Reduction: Legislation has been introduced that is intended to cut government spending by reducing its paperwork. SB 388 was recommended by a task force of business leaders appointed by Lt. Gov. Casey Cagle to suggest ways the Legislature could cut spending in the current state budget. The measure would require state agencies to publish information in an electronic format rather than printing it as a paper document, except in cases where current law requires a printed format. The Senate State & Local Government Operations Committee will consider the proposal.
Ethics Legislation: SB 394, introduced this week, would prohibit anyone who has had an ethics fine levied against them in the past 10 years from serving on the State Ethics Commission. The measure is intended to increase public trust in the Ethics Commission. The Senate Ethics Committee has the bill under consideration.
Sen. Stoner introduces Transportation Jobs Development Act
February 5, 2010
This week, I introduced the Georgia Transportation Jobs Development Act, a legislative solution to the transportation funding problem that has caused Georgia to fall behind other states in recent years.
The proposed legislation (SB 366 and SR 972) calls for a constitutional amendment authorizing the formation of special transportation districts, which would give citizens in local jurisdictions the power to decide whether to levy a regional sales tax for transportation improvements in their regions. The proposal would also dedicate the fourth penny collected on the state's motor fuel tax to transportation purposes.
Georgia has been losing jobs and federal dollars to other states because of the leadership's failure during the past two years to enact transportation funding legislation. For example, Florida and North Carolina were awarded nearly $1.8 billion in federal rail grants last week, while our state received only $750,000 due to the lack of support for rail projects by the Perdue administration.
The governor recently proposed a statewide vote on a one-cent sales tax for transportation to take place in November 2012, nearly two years after he has left office. It would be 2014 before those funds would have any positive impact on transportation improvements. Georgia cannot wait four more years to catch up with the needs of a population that has outgrown its transportation system.
The Transportation Jobs Development Act would establish a 10-county metropolitan transit district concurrent with the Alanta Regional Commission (Cherokee Clayton, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Henry and Rockdale counties). A district board consisting of elected officials on the metropolitan area planning and development commission would oversee transportation activites in the district. At least 50 percent of the sales tax collected within the metropolitan region would go toward mass transit, except in DeKalb and Fulton counties, where a sales tax for MARTA is already collected.
The plan would also authorize counties outside that region to levy a special one-cent sales tax for transportation if approved by local referendum. The local governments within those regions would develop a list of projects to be funded prior to calling for the referendum.
The fourth penny of the motor fuel tax, which generated $137 million in fiscal year 2009, presently goes to the state's general treasury. The legislation calls for those funds to be dedicated to transportation purposes on a phase-in basis between 2012 and 2015.
As a proposed constitutional amendment, SB 366 and SR 972 would require a two-thirds approval of both the Senate and House of Representatives, and a majority approval by voters in the 2010 general election.
Utility Pole Fees: The Senate Economic Development Committee has approved legislation that would give cable television companies an advantage in the process of attaching their cables to poles owned by electric membership cooperatives and city-owned utilities. Under SB 328, if a cable company could not negotiate a low enough pole fee, it could move the matter to the Public Service Commission for arbitration. The measure awaits a vote by the full Senate.
Telecom Deregulation: Legislation that would eliminate most of the regulations still in effect for the telecommunications industry in Georgia cleared a Senate committee this week and awaits a vote by the full Senate. HB 168, amended and approved by the Senate Regulated Industries Committee, would lower access charges, which are still fixed at 1995 rates, to current market rates. If approved by the Senate, the amended measure would go back to the House for final consideration.
Other Senate Action: Also this week, the Senate approved SB 319, which would expand the definition of "textbooks" in Georgia's public schools to include computer hardware and technical equipment to support the use of digital content, giving local school districts the flexibility to use modern, alternative methods of receiving information; and SB 315, the Uniform Emergency Volunteer Health Practitioners Act, which would allow aid workers to temporarily come into Georgia and work during a catastrophic emergency. Both proposals now go the House of Representatives for its consideration.
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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