The Ashe Advocate – March 21, 2008

Tax reform issue unsettled as end of session nears

By Rep. Kathy Ashe

With no more than six legislative days remaining in the 2008 session of the General Assembly, a number of major issues remain unsettled. Lawmakers are scheduled to reconvene Thursday, March 27, for the 35th day of the 40-day session.

Both the House of Representatives and the Senate have moved forward with separate versions of tax relief for Georgians this session, but there is no indication the two chambers will agree on one method. Gov. Sonny Perdue has announced his opposition to both tax relief proposals.

House members voted March 11 to eliminate ad valorem taxes on automobiles, less than a week after the proposal failed to receive enough votes due to opposition to a provision that would have limited annual revenue growth on the part of city and county governments and local school boards. When Speaker Glenn Richardson removed that provision, HR 1246 passed overwhelmingly.

But soon thereafter, the Senate Finance Committee rejected the car tax elimination and instead approved and sent to the full Senate a proposal to reduce state income tax rates by 10 percent over the next five years. If that measure is approved by the Senate and sent to the House, the issue of tax relief will likely be settled by a joint House-Senate conference committee near the end of the session, if at all.

A major piece of legislation that has been resolved is the midyear adjustment, or supplemental budget, for the remainder of fiscal year 2008, which ends June 30. The governor signed the $330 million adjustment into law on March 20, only one day after the House and Senate agreed to a final version of HB 989.

The supplemental budget includes $210 million for new school construction and restores $20 million in equalization grants that go to low-income schools around the state. Other highlights include $53 million for trauma care funding, $40 million for reservoirs and $2.7 million for indigent defense costs.

Later on March 20, House members approved a $21.2 billion annual state budget for fiscal year 2009, which begins July 1. Because of lower revenues caused by the state’s recent economic downturn, the House version is about $245 million less than Gov. Perdue’s original spending plan.

The House voted to restore $90 million of the $141.5 million in “austerity cuts” the governor had proposed to withhold from state funding to local school systems. These tax shifts have totaled more than $1.5 billion the past six years and have placed more of the burden on local property owners to fund public education, which is the state’s responsibility.

The House version of the FY 2009 budget also includes:

• A 2.5 percent pay increase for state teachers and employees, which the governor proposed to reduce to 2 percent
• $50 million for reservoirs
• $15 million for Georgia’s airports
• $10 million for school equalization grants
• $7.3 million for charter schools
• $2.9 million for salary increases for law enforcement officers in the Department of Natural Resources
• $ 1 million for the Meals on Wheels program

HB 990 is now under consideration in the Senate Appropriations Committee.

A “Made in Georgia” program, to be administered through the Department of Economic Development, would promote the sale of products manufactured in our state under legislation approved by the House last week.

If the governor signs SB 359 into law, Georgia manufacturers can give their products the “Made in Georgia” stamp of certification as soon as possible. This initiative was approved 161-1 in the House and is supported by numerous business and labor organizations that see the benefit of promoting Georgia-made products.

Also last week, House members voted 99-68 to approve legislation that would stiffen the penalties for driving without a license. Under SB 350, a person driving without a valid license could face from two days to 12 months in jail and pay a fine of $500 to $1,000. A fourth offense of driving without a license would be classified as a felony.

The legislation was promoted as targeting illegal immigrants who are repeat offenders of driving without a license, but concerns over the unintended consequences of jailing first-time offenders drew significant opposition.

A majority of House members passed legislation that would lead to the creation of a City of Dunwoody in north DeKalb County. However, I joined a majority of the DeKalb legislative delegation in opposition to SB 82. Incorporation of Dunwoody seems to be a recipe for a large tax increase and would establish another layer of bureaucracy to local government.

Turn your lights off!

Please participate with me for Earth Hour Atlanta: Saturday, March 29 from 8-9pm

This global initiative is presented by the World Wildlife Fund and is partnered with the City of Atlanta.  Atlanta is one of the major cities around the world asked to participate in this challenge.  Everyone (from individuals up to major corporations, hotels, restaurants, local organizations, schools, etc.) will be asked to do one simple thing: TURN YOUR LIGHTS OFF FOR ONE HOUR - it's all designed to show how doing one small thing can make a huge difference in the fight against climate change.  Wattage will be measured and reported by Georgia Power.
For more information go to www.earthhour.org

• Rep. Kathy Ashe (D-Atlanta) represents the 56th District (Fulton County) in the Georgia House of Representatives. Contact her at 409 Coverdell Office Building, Atlanta, GA  30334; by phone at 404-656-0116 or by e-mail at kathyashe56@mindspring.com.