ATLANTA --- Show us the money.
That'll be the refrain when Georgia's Legislature returns to Atlanta today and lawmakers grapple with a massive budget shortfall that will color nearly every decision that's made under the Gold Dome.
Gov. Sonny Perdue has already ordered most state agencies to slash their budgets by 8 percent. State workers have been furloughed. Fees at public colleges are rising. Health benefits for the poor are being scaled back.
The cuts could go deeper if the economy continues to worsen. Tumbling state revenues have ripped a deficit in the budget that's expected to top $2 billion for the current fiscal year. It comes as the recession pumps up the demand for government services such as Medicaid, food stamps and unemployment benefits.
At the same time, Georgia is wrestling with vexing -- and costly -- infrastructure needs to keep up with booming growth in metro Atlanta. Roads are clogged with traffic. Additional reservoirs are needed to quench the region's fast-growing thirst.
"It's going to be a painful session," predicted Lt. Gov. Casey Cagle.
TAX INCREASES TO fill the budget gap appear to be off the table. Republican legislative leaders have been cool to proposals that would slap new levies on strip club patrons, cigarettes or groceries.
Instead, they're talking about capping the rate at which home assessments can rise, a move that would hobble the ability of cash-strapped local governments to raise revenue.
Conservative Republicans cast the budget woes as an opportunity to "right-size" state government and get back to basics.
"It gives us the chance to really prioritize and figure out what government is here for," said Kelly McCutchen, the vice president of the Georgia Public Policy Foundation, an Atlanta-based conservative think tank.
The first salvo in the budget battle will come Wednesday when Mr. Perdue unveils his spending plan. He's pledged to include an aggressive bond package to kick start the state's economy by borrowing to fund road projects and school construction.
Legislators will be able to tinker with how the money is spent, but they won't be able to change the overall amount the state may spend. The governor has the sole authority to set that figure and the state is constitutionally prohibited from running a deficit.
The latest news from state money managers was bleak. On Friday, they reported tax collections plunged 8.9 percent for December from the same month the year before. For the fiscal year that began July 1 revenues slumped by 2.7 percent, dragged down by sluggish sales and income taxes.
THE FOCUS ON the budget meltdown is likely to mean other legislation will take a back seat.
Still, a plan to fund transportation improvements could move quickly this session after falling just short of the needed votes last year. It would likely allow local governments to band together to assess a one-cent sales tax to fund road improvements.
School vouchers could also emerge as a politically charged brawl. State Sen. Eric Johnson, a Savannah Republican, has said he wants to give parents in failing school districts more options.
But the top Democrat, state Sen. Robert Brown of Macon, predicted "the nuclear fight over universal vouchers will be more explosive than the Republican budget crisis."
The Augusta Chronicle ©2010. All Rights Reserved.
The Augusta metro area has the best housing market in Georgia and the 18th best in the nation, yet, in 2009 a DECREASE in home values of 2.6% is projected. Tax assessments have to start coming down eventually if things are done fairly. The only solution is less spending at every level of government and education.
This is exactly the confusion that would take place every year with a FLAT TAX. The state will continue to collect taxes needed regardless of the Federal rates. In other words if the Feds reduce taxes and quit providing funding to states the states will just increase their taxes.
Wonderful thinking there SOnny- increase funding for school construction but what are you going to pay the teachers with to teach in these newly constructed schools? As far as school vouchers- how does this improve public education? You need to look at the problems with public education- how do we teach those who are not interested in being taught, what do you do with those children who do not learn at the same pace but yet are expected to meet the same requirements at the same rate? is a school a failing school because 1 or 2 students in a particular subgroup did not score high enough on a test? These are areas that need to be assessed. Money does not correct problems- actions do. Let teachers teach and find alternative education for those who are not interested in being taught. Expect children to learn and demand that they behave. Make parents accountable for their children and their actions. Not one of these suggeestions cost a dime so stop throwing money at a problem thinking that money can fix it when common sense is the rememdy.
Amen, wise ole man!
"the state is constitutionally prohibited from running a deficit" - which would be something good to apply to Augusta-Richmond County. IMO it is a sure way to make government cut out all the wasteful spending that taxpayers have to pay for.
Wise words you gave us Riverman. But did you get the importance of the quote in the story above: "Instead, Republican legislative leaders are talking about capping the rate at which home assessments can rise, a move that would hobble the ability of cash-strapped local governments to raise revenue." If they pass the assessment cap, we need to hold on to our wallets, because you can count on assessments going up each year no matter what the housing market does. Why? Well Fred and Ron will be able to say, "The Legislature said it was okay!"
Little Lamb, you've done extensive posting in the forums about the automatic increases that would result under such a law. I could not agree with you more. If we can't trust county governments to assess homes fairly in this market, we can't trust them with the authority to automatically increase assessments a certain percentage no matter the true valuations. Things are going to become impossible before this is over unless harsh budget measures are taken.
"At the same time, Georgia is wrestling with vexing -- and costly -- infrastructure needs to keep up with booming growth in metro Atlanta." ------- Atlanta goto Hell. They take money all for themselves and regard the other cities in GA, as almost non-existent. Worst thing GA did was make Atlanta the capital, it's as foreign to GA as some foreign tourist, as most of them ARE. If someone asks you where you're from in Atlanta, and you say, "Augusta", they have that blank stare like they don't even know it exists. So, yes, goto hell Atlanta.
"what are you going to pay the teachers with to teach in these newly constructed schools?" ----- Nothing, as that's about what taxpayers get in GA for an education, even with $50,000/yr teachers. Blame likes to be shifted all over, but simply paying teachers more isn't the "magic bullet" to cure our failing school system. The problem is the CULTURE.
think of all the money the state could save by closing down or limiting public housing to those who truly need it or the elderly, instead of the "baby's mommas" who are under 30 years old able to work and have 3-4 or more children